| |November 201919trong demand for offices coupled with low vacancy have led to rental growth in IT/ITeS domi-nated cities such as Bengaluru, Hyderabad and Pune. Rentals in office spaces have grown by more than 5% on a Y-o-Y basis during the third quarter of 2019 as compared to the corresponding pe-riod in the previous year. These cities are becoming pre-ferred destinations for occupiers who are expanding their footprint. Availability of developable land and higher rental arbitrage is mak-ing it easier for occupiers to look at these cities. Rentals are on a riseSource: JLL Real Estate Intel-ligence Service; the numbers below indicate average rentals across cities The strong demand has restricted vacancy levels to single digits despite addition of more than five million sq ft in Hyderabad and more than three million square feet in Bengaluru in Q3 2019. Mumbai and Delhi-NCR are the only exceptions, where office rentals have not shown any movements. In both these cities, their most sought-after business districts like BKC in Mumbai and DLF Cyber City in Delhi-NCR are experiencing vacan-cy levels less than 5% with healthy rental movements. However, as a whole, there are many peripheral and suburban business districts in these two cities, with high vacancies, leading to almost non-existent rental movements when observed from a macro-level. City-wise trends:A) Top performers: HyderabadConsidered to be another milestone year for the city, year 2019 so far has STRONG DEMAND FOR GRADE A OFFICES LEADS TO A HEALTHY RISE IN MONTHLY OFFICE RENTALSBy Samantak Das, Chief Economist and Head of Research & REIS, JLL IndiaS CXO INSIGHTSCitiesQ3 2018 (INR per sq ft per month)Q3 2019 (INR per sq ft per month)Y-o-Y Growth (%)BengaluruHyderabadPuneKolkataChennaiMumbaiDelhi-NCR68.8351.5064.8150.8357.00122.7677.8672.9356.2068.1752.1459.00123.8777.256%9%5%3%4%1%-1%
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