Bengaluru’s prime office rental falls by 8%, while Mumbai falls by 6.2% in the first quarter of 2021.

According to a Knight Frank report, prime office rentals in Bengaluru and Mumbai dropped 8% and 6.2%, respectively, from January to March 2021 versus the preceding year.

According to the consultant’s Asia-Pacific Prime Office Rental Index Q1, 2021 survey, prime office rents in the national capital region (Delhi-NCR) fell by just 1% from January to March this year compared to the same time in 2020.

“Despite the uncertainty surrounding India’s office sector’s results,” Knight Frank said, rental prices in Bengaluru, NCR, and Mumbai are expected to remain stable over the next 12-months.

The rental Index in Knight Frank, which was led by the major office markets of Tokyo, Hong Kong and Bengaluru and decreased between 3% and 2.8% during the same time, decreased 1.2% in the quarter of Q1 2021. The overall index was down 5.5% year on year.

“The second wave of pandemic and related regional lockdowns have temporarily delayed occupiers’ office re-occupancy plans,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India.

However, he expects that infection case count management through graded regional lockdowns and progress on the vaccination drive would serve as a market stabilizer in the near future.

“Despite the short-term uncertainty, with the strong fundamentals of the office market of India, occupants will react positively to any improvement in the nation’s pandemic situation,” said Baijal.