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1. CBD area of Bengaluru registered 4.7% growth in the office rental space in Q1 of 2017

2. Connaught Place area of New Delhi recorded 4.3% growth in office rental in Q1

3. BKC area of Mumbai recorded 3.4% growth in Q1 of 2017

The prime office markets in Bengaluru, New Delhi and Mumbai have recorded healthy growth in the office rentals space in the first quarter (Q1) of 2017 despite the nervousness of demonetisation among real estate investors, according to Knight Frank's latest report. 

"Despite the initial jitters of demonetisation the key office markets in Delhi, Mumbai and India’s IT capital (Bengaluru) saw healthy surge in office rentals on a year-on-year (y-o-y) basis," Knight Frank said in a press release on Tuesday. 

The rise in rents was remarkable considering that the three cities collectively saw close to 2.4 million square metre of new office space added since the March ending quarter of 2016, showed the Knight Frank index .

In a surprise move to curb black money, corruption and terrorism, prime minister Narendra Modi had announced demonetisation of high value notes of Rs 500 and Rs 1,000 on November 8 last year whereby it resulted in massive cash crunch across the country. 

Property consultant Knight Frank in its recent report titled 'Knight Frank Asia-Pacific Prime Office Rental Index' has surveyed rent hikes at prime office markets across 20 global cities between the first quarter (Q1) of 2016 and 2017.

As per the Knight Frank report, Bengaluru has emerged as the top Indian metro for recording growth in the office rental space globally for the first quarter (Q1) of 2017. 

The demand in the office market in top three Indian metros was driven by BFSI, manufacturing and consulting sectors. The central business district (CBD) of Bengaluru registered 4.7% growth in the office rental space in Q1 while Connaught Place in New Delhi recorded 4.3% growth in the office rental in the same period.

The growth in CBD of Bengaluru was also led by the growth in office rental space at MG Road area.

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Similarly, the Bandra Kurla Complex (BKC) area of Mumbai recorded 3.4% growth in the first quarter (Q1) of 2017, cited Knight Frank report. 

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