The Bengaluru CBDs became Asia Pacific best performing market, expected to grow more in 2020.

Despite slow economic growth and rental in the Central Business Districts (CBDs) of Bengaluru and Mumbai, the Indian Office Market will continue to be strong in 2020, while CBD rental growth is expected to remain steady in the National Capital Region (NCR), Knight Frank India said.

The CBD of Bengaluru is expected to see more supply in 2020, covering areas such as MG Road, Infantry Road and Residency Road, while demand is expected to continue with the growing IT industry.

Grade-A office rent throughout the Asia Pacific is expected to drop between 0 and -3% in 2020, down from the 0.6% rise in the first nine months of 2019, as the occupiers demand remains to fade.

“Regardless of the economic downturn in 2019, Office markets in cities such as Mumbai, NCR and Bengaluru remain healthy and are rising due to the rapid expansion of the IT sector. We expect the trend for these markets to continue, considering the growth in demand for office space by 2020,” said Knight Frank India Chairman and Managing Director, Shishir Baijal.

The Bengaluru CBDs became Asia Pacific best-performing market in the third quarter of 2019, showing rental growth of 17.6%, as reported by the Knight Frank Asia-Pacific Prime Office Rental Index. The Connaught Place CBD’s in the National Capital Region (NCR) and the Bandra Kurla Complex (BKC) in Mumbai were the 7th and 11th most rapidly growing prime office markets, respectively, in the Asia-Pacific region with a relatively minor 4.4% and 2% annual rental increase in the quarter.