Outlook 2023 India

RENT (INR/SQFT/YR) AND RENT GROWTH (% PER ANNUM) BENGALURU RENT GROWTH

 Rentals remained largely unchanged (INR 1116/sft/yr) during 2021-2022,with transactions getting signed at pre-Covid rates.  Despite tight vacancy in prime micro-markets of Bengaluru, overall rentals remained stable owing to slow Return-to-Office of employees until mid-2022.  With tight vacancy levels in the prime submarkets to continue, rentals are expected to witness an upward movement from 2023 onwards, though the rate of rental growth may vary.

FORECAST

1,220

2.5%

1,200

2.0%

1,180

1,160

1.5%

1,140

1.0%

1,120

1,100

0.5%

1,080

0.0%

1,060

1,040

-0.5%

2020

2021

2022F 2023F 2024F 2025F 2026F

Rent (INR/SQFT/YR)

Rent growth (%)

Source: Cushman & Wakefield