Tokyo records highest increase at 5.6%: Knight Frank Asia-Pacific Prime Office Rental Index Q3 2018

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Bengaluru’s office market normalised, recording a 0.4% quarter-on-quarter growth

Knight Frank, the independent global property consultancy, today launched its Asia-Pacific Prime Office Rental Index for Q3 2018. The index increased by 2.3% quarter-on-quarter and 6.4% year-on-year in the third quarter of 2018.

Results for Q3 2018

  • The index showed slower growth, as office occupiers delayed significant real estate decisions amidst rising US-China trade tensions
  • 18 out of the 20 cities tracked report stable or increased rental growth
  • After a strong showing in Q2 2018, Bengaluru’s office market normalised, recording a 0.4% quarter-on-quarter growth
  • Tokyo recorded the highest increase this quarter at 5.6% on the back of strong occupier demand and limited supply

Nicholas Holt, Head of Research for Asia-Pacific, says, “While we are starting to feel the impact of the trade tensions flow through the Asia-Pacific office markets, sound economic conditions are expected to support office demand and drive steady rental growth across the region.”

Shishir Baijal, Chairman and Managing Director, Knight Frank India, says, “Rentals across major markets have shown a positive trend due to factors such as a growing demand and somewhat restricted supply scenario. The office market space in both Bengaluru and Mumbai has not only revealed optimistic growth in the recent times but is also slated to strengthen further. Going forward, we expect that these factors will help major commercial markets to remain on a sound footing and boost the rental segment in the region.”

Asia-Pacific Prime Office Rents