Mumbai figured in the top 10 markets with the highest office rental values in the Asia-Pacific region for the first quarter of 2017, said a report from real estate consultancy Jones Land La Salle (JLL). Hong Kong continues to be the priciest market in the region while the top 10 also had cities such as Beijing, Tokyo, Shanghai, Singapore, Seoul and Sydney.
Overall, rents in the Asia-Pacific region increased 2.9 per cent from a year ago, slightly faster than the 2.3 per cent rate seen in the December quarter, fourth quarter of 2016, said the report.
However, overall leasing volumes fell 4 per cent from a year ago, primarily because of slackness in India where markets cooled as supply volumes dropped sharply, said the report.
Among the regions that did grow, apart from Melbourne and Shanghai, Delhi showed good performance thanks to IT/ITeS, manufacturing and professional services firms. On the other hand, Bengaluru saw the sharpest fall in leasing volumes, the study said.
Mumbai also figured in the top 15 markets when it came to capital value of office space. Capital value growth accelerated to 4.9 per cent from a year ago in the first quarter of 2017, the study said and noted that Mumbai sits behind Auckland and Chinese and Australian cities in the top 15. Delhi-NCR, Chennai and Bengaluru all saw a more plateaued capital value growth and sit outside the top-20 Asia-Pacific markets, it added.
The study also noted that the market is unlikely to see a sharp increase in both office rentals and capital value for the rest of this year.