Major Metro hubs Mumbai, Delhi and Bengaluru have topped the global commercial property market in terms of annual rental fetch. The three key destinations of India has surpassed all other global business destinations by achieving 9.5% to 10.5% annual rental returns. This was achieved by the depth of lease market and demand of commercial properties of the three cities.
Further, cities like Chandigarh and Noida are also well placed along with these topper cities. Chandigarh has world class malls like the Elante which has attracted global luxurious brands to lease the commercial space and thereby accessing the potential Indian customers. Noida, renowned for its splendid infrastructure, is also one of the best bets in NCR with its higher rental incomes. Both these contenders can be expected to pace up along the three toper cities soon.
Back to the survey, Bengaluru has topped the list with annual growth of 10.5%. Cities like Tokyo, Singapore, London, New York and Hong Kong ranged between growth rates of 2.9% to 7%. Mumbai and Bengaluru have also been featured in the top 5 cities for future rental growth. In the survey, Mumbai is expected to grow nearly 22% and Bengaluru by 16% in coming future.
The increasing demand for the commercial properties in India has been attributed to about 67% of overseas investment flowing to the Indian real estate. Owing to the robust demand from the newly forming start-ups and e-commerce, the commercial rental market can be expected to surge further. Thus, the commercial real estate market seems making a drastic comeback from its dumped stage. Many large scale transactions have been taking place to substantiate this come back.
Bengaluru and Mumbai are leading in front with these commercial rental transactions. Tata Consultancy Services (TCS) has entered into a mammoth agreement to lease over 2 million square feet built-to-suit space at Hiranandani Estate in Thane for 15 year. This is been considered as the single largest office rental transaction in terms of area in India. Earlier in May, Flipkart has also leased a custom-built office campus sweeping 2 million square feet in Bengaluru.