Bangalore, Silicon Valley of India has been a top notch office market over the past decade with leading office space absorption in the country. Even after passing a decade, city still boasts great opportunities for investors and office buyers. The infrastructure development and regular regional expansions has kept Bangalore an ideal IT city of the country, and even the top IT city in the country. Metro Rail Corridor development and establishment of Outer Ring Road and emerging areas along the Outer Ring Road stretch have worked as a catalyst in the Bangalore office real estate market. The major office space absorption can be primarily attributed to the IT/ITeS sector of the city. Although Bangalore has been going through a great spell over the past few years, it seems that the rough patch has finally hit the office market of Bangalore. In the first half of 2013, Bangalore office market witnessed mixed market sentiments which resulted in fluctuations in the transactions. Second half of the 2013 saw a great recovery in the demand of the office market with a major contribution from IT/ITeS sector.Market scenarioThe Bangalore market is diversified in several sub market depending on the geographical situation of the precincts as different business districts. Each business district represents different characteristics and attributes depending on the office market scenario at the micro level. Central Business District and Off-Central Business District (CBD & Off-CBD)The centrally located region of CBD and Off-CBD office markets was highly preferred by the small and medium scale companies. The ongoing construction work of the Metro Rail had somewhat affected the market transactions in this region but as the work of Metro rail completed it spruced up the regional office market activities of CBD and Off-CBD. The availability of metro rail for transportation has changed the usual negative sentiments towards the region by improving the interest of office buyers in the CBD and Off CBD. The growth in the CBD and Off-CBD market was observed due to the better connectivity available in the region.
- First half of 2013 observed absorption of 5 per cent in CBD and Off-CBD
- Decrease of 3 per cent was observed as compared to the previous year’s same period absorption
- The decrease in absorption can be attributed to the supply constraint observed in the market.
- Avaya on MG Road and Lintas on Murphy Road were the biggest contributors in the overall absorption of the district.
Secondary Business Districts (SBD)Business district housing suburban office markets observed great demand for the standalone office projects from mid sized companies. The demand from the IT/ITeS, Healtcare and BFSI companies was the dominating factor in the micro market of the SBD. SBD market possesses great connectivity with most of the primary residential and central location of the city. Hence it has remained the most sought after office market in the city.
- In the first half of the 2013, SBD witnessed 13 per cent absorption of overall absorption.
- The absorption was drastically pushed down as compared to the 35 per cent absorption in the same preceding period.
- The key absorptions in the region were Dell at Koramangala Inner Ring Road, Amazon at Malleshwaram and SLK software at Old Airport Road.
Peripheral Business District (PBD)PBD micro-markets observed great decline in occupiers due to the lack of infrastructure, premium residential developments, entertainment and retail facilities and more importantly distance from the international airport. PBD office market observed the highest office space transaction in the Bangalore. The Electronic city lost its essence in the commercial real estate, but Whitfield remained in the demand. Whitefield demand continued to increase due to the presence of decent residential projects, malls, hotels along with good infrastructure.
- The absorption of 24 per cent office spaces were observed in the PBD
- PBD absorption level was reduced by 15 per cent as compared to the preceding year’s same period.
- The first half of 2013 observed key absorptions from IP soft, AIG insurance and Capco
- Most of the absorptions including key absorptions were observed in the Whitefield region.
Outer Ring Road (ORR)Large availability of the virgin supply in addition to the relatively competitive prices has emerged ORR stretch as a new business district in Bangalore. ORR has been emerged as the most preferred business district of the city. The proximity of the region with the Central Business District, prominent residential markets, and huge availability of land parcels has helped ORR to gain immense demand for the office spaces. The most important factor behind the emergence of the ORR micro-market is its proximity with the international airport. The high end infrastructure development along with several flyovers and underpasses has made the whole stretch a easy transporting mode.
- The office market of the ORR observed the great increase in the absorption this year which contributed for about 58 per cent of the overall office space absorption of the city.
- The OOR sub market observed an increase of 30 per cent in the absorption level in one year period.
- Attractive rentals and high supply have helped a lot to the ORR sub market.
- Prominent absorption in the ORR was NVidia at Hebbal ORR, Linkledin at Sariapur Road ORR and Samsung at Marathalli ORR.
- ORR emergence highly influenced the SBD markets which decline the absorption level in the SBD
- ORR is the most sought after office destination in the Bangalore city along with the Whitefield region in PBD.
OverviewGlobal economic turmoil has highly influenced the Bangalore commercial market, but steadily and gradually, the office market of the city always survived in every situation. The overall office absorption in 2013 would be below the previously observed absorption level in 2012. IT/ITeS sector dominantly influenced the office market of the Bangalore over the past decade and it will continue to be leading in the coming future. Although Bangalore is running out of the availability of land parcels, the demand in the corporate world will create new office market on the fringes of the Bangalore city, especially towards the North Bangalore. The region between Hebbal and Yelahanka houses several upcoming commercial projects along with many projects in the planning stages. Hennur Road and Bellary Road IT/ITeS SEZs are some of the prominent developments which will provide trust to the North Bangalore’s office market.Bangalore Office market will continue to observe the lower demand in the near future which will be improved with numbers of ongoing projects coming online in the next few years. Bangalore office market is steadily and gradually coming out of its bad period. The demand of the office spaces will be high in the adjacent areas of the Outer Ring Road and Whitefield region.займ на карту без отказов круглосуточновзять кредит онлайн