We have come to the end of first half of 2016 and commercial real estate market in India seems to have a great second half too. The reason is just that it’s on the rise when compared to other important businesses across the globe. Many property research firms are reporting that significant cities in India like Bengaluru, Delhi and Mumbai are on the top when it comes to rental yields of commercial properties. It’s also said that these markets have outperformed the other hotspots over the world with about 10% annual returns.
Indian cities in the list of most expensive office markets
• We are aware that Bandra Kurla Complex in Mumbai has been an important office space market in India, but what we need to know is that, it’s now the 19th most expensive prime office market in the world. Also, the Connaught place in Delhi ranks even higher (Number 7) according to the recent reports of a prominent property research firm.

• Being the seventh most expensive office market in the world, the annual occupancy cost in Connaught place is 10,000 INR per sq ft. Also, Bandra Kurla Complex stands in the 19th position and the Nariman point stands at 34th position, says the survey report.

• The report also says that, global office occupancy costs reflecting rent, local taxes, and service charges for high quality office properties saw the year-on-year rise of 2.4%. Also, the prime occupancy costs in Asia pacific are growing at a faster pace of 2.7% (year-on-year). Meanwhile, many Southeast Asian markets including Jakarta and Singapore saw a fall in the occupancy costs.

• According to a leading property management firm, the commercial real estate market in India is currently witnessing a favourable movement. Being the seventh most expensive office market, Connaught place continues to attract the occupiers and is witnessing a steady leasing activity for the office space. The ease of connectivity and its central location has been the main reasons for it to be attracting some big corporates like banks, engineering firms and financial institutions.
Looking at these statistics, we can say that India has had a great first half (2016) in the field of commercial real estate. It’s not just the on-going year; office space market in India has seen a healthy traction since 2015, where India registered the office space transaction of about 18 million sq. ft. in the first six months, while completing the transaction of about 40.2 million sq. ft. by the end of 2015.
On the whole, the report makes it clear that India has been a favourable outsourcing destination for numerous multinationals to expand their operations. The global survey made by a popular property consultant firm says – Bengaluru, the silicon valley of India has topped the list with the annual rental yield of about 10.5%, whereas the yield in cities like Singapore, New York, London and Hong Kong ranged between 2.5 - 7%. This is just an instance that says Indian commercial real estate market is rising to the top.

Property management firm in Bangalore:http://www.commercialofficebangalore.com