Bengaluru is expected to witness an estimated growth of 6.6 per cent in the office rental values making it the third fastest growing office market in terms of prime rental values for office space globally, according to a Knight Frank report.

In the report titled ‘Global Outlook 2019’, Bengaluru is ranked third among the top ten cities globally followed by Delhi which is expected to see a rise of 6.5 per cent.

With 10.1 per cent, Melbourne tops the list of the cities which are expected to see rise in the prime rental values in 2019. Sydney is on the second position in the list with a growth forecast of 8.6 per cent.

The annual report evaluates 33 global cities and gives insight on office rental growth, office occupier forecast, industrial and retail outlook along with other alternate sectors such as logistics, healthcare and hotels.

“The trend of rental growth in prime markets is expected to continue in 2019 for prime Bengaluru and New Delhi markets, due to continued supply crunch. Mumbai is however expected to see stable rentals in 2019 with an outlook of marginal rental growth due to anticipated supply for 2019 in the prime market,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

This rental growth is also the prime reason for increased interest from institutional investors in acquiring income yielding assets in the commercial segment, he added.

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