Bengaluru among top three global places on rent and capital value expectations: Survey

BENGALURU: Bengaluru has emerged as one of the top three destinations in the world for rent and capital value expectations in cities recently surveyed, according to a survey from standards setting body, Royal Institution of Chartered Surveyors (RICS).
With respect to 12 month capital value expectations, the most buoyant projections were posted in Dublin, Bengaluru and Budapest, the report, Q3 2015: Major Cities Commercial Property Monitor, said.
Also the most elevated all-sector 12 month rent expectations were returned by respondents in Dublin, Bangalore and London.
“Bangalore has been consistently performing better than other regions in India for many years now. The city has low inventory as project sizes are relatively smaller in comparison to Mumbai and Delhi NCR. Developers are not carrying high debt, execution and delivery of projects are on time and there is a healthy demand of Grade A office space,” Devina Ghildial, managing director, South Asia, RICS, said.
Mumbai ranked second and Delhi NCR was third in the country. The report said capital values are expected to rise, to a greater or lesser degree, in 21 of the 32 cities for which RICS has data during the coming twelve months.
“Many new start-ups, e-commerce, IT and ITes companies are looking to expand their operations in Bangalore. Our survey clearly puts Bangalore as one of the top destinations not only in India but at a global level for rent and capital value expectations,” Ghildial added.
The results show a greater divide emerging between those cities in which sentiment has remained robust over recent quarters, and others where confidence is slipping. Near term momentum has reportedly deteriorated across many emerging markets, with economic rebalancing in China likely a key catalyst.
The RICS composite indicators, covering developments in overall occupier (OSI) and investment (ISI) market conditions, highlight Dublin as a standout performer in terms of market momentum. The top OSI readings were posted in Dublin, Lisbon and Tokyo during the third quarter, suggesting occupier market fundamentals improved at the sharpest quarterly pace across these three markets.