New Delhi: India is still the best performer in the office space market in the world, with average rentals gorwing around 36% as against an average rise of 25% in the Asiapacific region. In the US, rentals rose 18% and Europe saw a 14% increase.
Executive managing director of cushman and Wakefild, South Asia, Sanjay Verma, says that most micro-markets in Mumbai saw an upward trend in rental values due to law vacancy and lack of new supply as projects were delayed. But high rental values across the country are not sustainable beyond the next 12 mounths, given the significant IT- specific realestate supply planned in 2008, he added.
The review said that the rental growth across the world has been driven largely by a lack of supply in the face of strong demand. Vacancy rates have fallen considerably in many markets over the year, but developers have remained relatively cautious.
In the global market, Asia emerged as one of the highest growth markets. And in Asia, India is the main driver. According to the report, within Asia_Pacific region, India captured three of the top 10 most expensive locations with Mumbai-Nariman Point and central Mumbai-Worli on third and fourth position respectively and New Delhi's connaught place at sixth position in Asia-Pacific.
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