India’s top office rental market is Bengaluru, and more reports

For PropertyGuru’s real estate news roundup, Bengaluru is the top contender in India’s office rental market, thanks to its IT hubs. In other news, Vietnam’s real estate price growth over the past five years has expanded to 59 percent. Lastly, the Philippines’ National Shelter Month observance highlights housing issues while promoting solutions and policies to improve the housing sector.

Whitefield, Outer Ring Road, and South Bengaluru drive office rental boom in IT capital

Bengaluru has solidified its position as the top contender in India’s office rental market, noted the IIMB-CRE Matrix Commercial Property Rental Index (CPRI) released on 29th November. The city recorded positive rental growth in 44 out of 50 quarters, the highest among Tier-1 cities.

According to The Indian Express, Bengaluru’s 12-year compound annual growth rate (CAGR) stands at 5.3 percent, making it the third-highest among Tier-1 cities in India. Over five years, the CAGR was recorded at 3 percent, while the 10-year CAGR reached 5.2 percent, showcasing consistent long-term growth in rentals. The city’s largest single-quarter increase was observed in Q3 CY’13, with an impressive 4 percent growth, reflecting strong leasing activity during this period.

Whitefield, South Bengaluru, and the Outer Ring Road (ORR) have emerged as the top-performing macro-markets, driven by their IT hubs, and proximity to residential areas. Among these, Whitefield has led the way with a 12-year CAGR of 6.1 percent, becoming Bengaluru’s most sought-after commercial hub. Other significant contributors to the city’s rental growth include South Bengaluru and the Central Business District (CBD), which continue to attract diverse business segments.

Real estate prices in Vietnam expand by 59 percent over 5 years

Vietnam’s real estate price growth over the past five years has reached 59 percent, significantly higher than other countries such as the US (54 percent), Australia (49 percent), Japan (41 percent), and Singapore (37 percent), according to data from the Global Property Guide.

VietnamPlus reports that the information was shared by Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn — a reputable property platform in Vietnam — at the 2024 Vietnam Real Estate Summit on 3rd December.

Anh stated that economic growth, governance, and social demand are the three main factors influencing real estate prices. In addition to strong per capita economic growth, favourable interest rates and the effectiveness of domestic investment channels have reinforced consumer demand for real estate purchases.

Building better, affordable housing for Filipino families

Despite significant developments, the Philippines needs help with housing affordability and a growing housing backlog. As mentioned in BusinessWorld, while more affluent households can afford condominiums and durable single houses, the poor often resort to less secure and substandard housing in informal settlements.

According to the Department of Human Settlements and Urban Development (DHSUD), the country faced a housing backlog of approximately 6.5 million units from 2017 to 2022.

In light of the country’s current housing landscape, National Shelter Month, observed every October, is more relevant as it offers an opportunity to reflect on the challenges facing millions of Filipinos. According to the DHSUD, the observance serves as a platform to highlight housing issues while promoting solutions and policies to improve the housing sector. It also calls for government agencies, real estate developers, and financial institutions to come together and implement sustainable and inclusive housing strategies.

In response, both the government and the private sector have ramped up efforts to provide more affordable housing, implement urban renewal initiatives, and create housing policies that support the needs of all sectors of society.

The Property Report editors wrote this article. For more information, email: [email protected].