Bengaluru beats London, New York in office rental yield

Bengaluru, Mumbai and Delhi are the top three cities globally in office rental yields ahead of London and New York. According to a Knight Frank Report while London and New York offer rental yields at four per cent Bengaluru, Mumbai and Delhi offer 10.5, 10 and 9 per cent, respectively . However, the current office rentals in Mumbai and Delhi are lower than the 2007 peak levels by 17 and 19 per cent, respectively; Bengaluru holds forte with an 8 per cent growth.

Mumbai and Bengaluru feature among the list of top five global cites in terms of future rental growth — expected to grow to the tune of nearly 22 and 16 per cent, respectively

Knight Frank launched the second edition of its flagship global report — Global Cities — 2016 on Friday. The report provides a comprehensive outlook for real estate in 21 of the leading business cities and forecasts for the next five years. This time around Bengaluru and Delhi are also a part of the analysis apart from Mumbai which was included last year.

According to the report the Delhi- Mumbai Industrial Corridor (DMIC) finds a place among the top five global infrastructure projects that are expected to create new business clusters and generate unprecedented employment opportunities. 

The Indian REIT sector to give a further push to commercial real estate and could attract investments worth $100 bn in the next few years. — TNS