Out of the 20 surveyed cities across Asia Pacific, only three markets experienced QoQ movements in the office and retail sectors. The industrial sector was relatively stable over the past quarter for all cities.
Bengaluru was the only city that has seen movements in the office sector. The city picked up the fastest across India with the bulk of office transactions happening along with few marquee deals, which have pushed down cap rates. Malls were the last facilities to be reopened after lockdowns were lifted in India. All anchor tenants and most of the stores in Mumbai and Bengaluru have renegotiated rental rates, driving the net realizable rent down.
We saw retail rent demand has dropped in Ho Chi Minh City. The cap rate has risen for two consecutive quarters. Overall, the short-term economic outlook is still uncertain in many countries and real estate transactions are yet to return to a meaningful level.