Office space yields fall in major hubs of metros as values rise

Lower yield is better for property landlords, it indicates appreciation in capital value of property

In February 2017, ICICI Prudential Life Insurance bought an entire floor of 60,000 sq ft (chargeable area), leased to Tata Communications, in Crescenzo building at Bandra Kurla Complex (BKC), micro-market of Mumbai, for Rs 147 crore. Tata Communications pays rent of Rs 177 per sq ft per month (on chargeable area). The purchase price is equivalent to Rs 24,500 per sq ft on chargeable area and Rs 40,960 per sq ft on carpet area. The net yield achieved by the buyer in above transaction is 8.46 per cent.

Two years ago in Q2 of CY2015, a pre-leased property in the