Bengaluru is followed by Shanghai and Singapore as most preferred for office expansion in Asia Pacific.
Bengaluru is the most preferred city for office expansion in the Asia Pacific region, followed by Shanghai and Singapore, a report by commercial real estate services firm CBRE said on Thursday.
The CBRE Asia Pacific Occupier Survey 2018 said: "Although Shanghai has a large volume of new office supply, strong expansionary demand is expected to limit downward pressure on rents.
"In contrast, large scale pre-commitments to space in new projects in core areas of Bengaluru is tightening space availability."
It added that the market-wide supply shortage in Singapore could also pose a challenge for occupiers seeking space there.
"In India, multinationals are focusing on expanding in Bengaluru and smaller cities across the country, but have limited growth plans in the Delhi-NCR or National Capital Region and Mumbai," the report observed.
The demand-supply mismatch exists in New Delhi and smaller markets in the country, along with China's Tier-1 cities, which are facing "considerable oversupply", according to the report.
The survey was done among 50 corporate real estate executives from multinationals and large Asian corporates from October to December 2017, it said.