Office market likely to remain resilient in 2021

India's office market will remain resilient in 2021, property consultancy Knight Frank said. In its latest report on 'Asia-Pacific Real Estate Outlook 2021: Navigating the Post-Pandemic Recovery', the consultancy said that Bengaluru market is expected to experience a rise in rental values in the next year while Mumbai and NCR are expected to remain stable in rental values.

"These trends indicate that despite a bleak period between April and June 2020, the overall demand for office space could remain strong in the new year.

For the main office markets of India, the positive trends are a draw out of the encouragement received in the subsequent part of 2020 (July-Sept) which saw office space demand making a comeback, albeit still short of pre-Covid periods," the report said. In particular, it pointed out that Bengaluru has the benefit of existing low vacancies that will enable absorption of much of the upcoming supply.

"The city also has the advantage of relatively lower rentals compared to global markets and large talent pool that should help in quicker revival of this market as global economies move towards normalcy," it said.