Savills: Effective office yields in Mumbai are at 0.2% discount to 10-year benchmark bond yields


In its recently published report ’12 Cities: Occupying and investing in world city real estate’, Savills considered yield metrics for office space in each of the cities reviewed. In Mumbai, for instance, headline office rental yields are 10.0%. Allowing for hidden costs borne by the landlord and incentives to tenants, the effective yield is 7.6%. Effective yields are lower than those of benchmark 10-year bond yields in India by 0.2%. Globally, average headline and effective yields are 4.3% and 3.3% and effective yields exceed benchmark 10-year government bond yields by 0.9%.

Source : October 2015/Savills/Mumbai/OFF