Office Rental Growth Continued to Surge in Pune.
Office rental growth continued to surge in cities like Bengaluru, Pune and Gurgaon. With year-to-date absorption of 10 million sq ft, Bengaluru continued to outperform with sustained interest from occupiers. Thus, the upward pressure on rents continued in several Bengaluru micro markets on the back of shrinking vacancy levels. Although rental values in Pune stabilised in the second and third quarters of 2017, they are still relatively higher than the same period last year due to constant supply crunch in the Pune market, says a Colliers International India report..
Surabhi Arora, Senior Associate Director - Research, said: “All the cities in the South and the Pune market are witnessing single digit vacancy rates. While the construction of grade A commercial properties may ease some of the pressures, we do not expect inventory pressure to reverse any time soon. Despite a strong supply pipeline in most of these cities, we expect, the rental values to increase in the short term, especially, in grade A developments.”
In Pune, growing demand from occupiers and minimal supply has led to rental growth of 10.9% in Baner. The Hadapsar/Fursungi market also witnessed 10.2% rental growth. Rents increased 10.1% y-o-y basis in Kharadi owing to severe supply crunch and keen interest from occupiers. However, rentals are set to stabilise due to strong supply pipeline that is expected over the next 3-4 years, Colliers said.
ETRealty | November 01, 2017,