BANGALORE’S central business district (CBD) has emerged as the second best office location in Asia in terms of its annual rental growth performance, according to a study by Cushman & Wakefield.
The Office Space Across the World 2009 report states that Bangalore CBD, which is a new entry in this year’s top 10 list, recorded an 18% annual rental growth in December 2008. With 58% growth in CBD rentals, Kuala Lumpur was the number one location in Asia. Kolkata closely follows Bangalore with a 17% rental growth. Bangalore’s annual CBD rental per sqft is $26 while it is $31 for Kolkata. NCR, Mumbai and Chennai have slipped into negative growth, the report says.

Cushman & Wakefield said, the relatively new markets of Bangalore, Kolkata, Pune and Hyderabad were not as inflated as the more mature markets of Mumbai and Delhi where price points defied the low operational cost advantage that developing economies boast of. Hence, scope for rental correction was much less in the former. At $134 per sqft annual rental, Mumbai CBD emerged as the sixth most expensive office location in the world.