Bangalore had the finest year amongst all commercial cities in India with 1.4 million sq ft in fourth quarter of 2012, against 1.2 million sq ft in third quarter of 2012. The fourth quarter leasing activity was healthy in 2012, with a total transaction of 1.9 million sq ft whereas the third quarter boasted 670,900 sq ft the vacancy rate in the fourth quarter was decreased to 7.2% from the 7.4% of the third quarter. The lowering was caused by means of stable demand and restricted supply in the market.Foremost leasing transactions involved companies like d Britannia, SLK Software, Sabre Technologies, Deutsche Bank, Accenture, Wipro, Bosch, Computer Slash Support, SAP Labs, Empire Software, Cypress and Ameriprise. IT/ITES sector majorly dominated the leasing activity in the final quarter of the year.With the completion of few big projects Bangalore perceived 1.3 million sq ft of total built up area in the final quarter of 2012. On the contrary 1.1 million sq ft was recorded in the preceding quarter. Khoday Tower with 200,000 sq ft along Rajbhavan Road and JP Square with 30,500 sq ft in Sadashivnagar were the new supplies in the Central Business District (CBD) along with Prestige Exora Block B3 and Embassy Tech Square Block Delta from the Secondary Business District (SBD).No change was recorded in the values of average rents across all submarkets in the final quarter of 2012. Marginal increase was seen across all submarkets in fourth quarter of 2012. CBD and SBD got the increment of 1.0% q-o-q whereas Whitefield and Electronic city had the stronger growth of 2.0% q-o-q due to rise in demand. None of the transactions were involved Investment markets hence it was remained subtle for the quarter.Rents observed in Bangalore
- At Central Business District (CBD) rent was Rs 83 per sq ft per month.
- Secondary Business District (SBD) had Rs 49 per sq ft per month rent value.
- Whereas Whitefield and Electronic City had rents of Rs 33 and Rs 26 per sq ft per month, respectively.
Future Prediction:Recent existing enquiry levels and demands suggest that the leasing activity will be modest in 2013, especially secondary submarkets and Whitefield submarket. There will be no increase in the rents throughout the first half of the 2013, yet it will boost up in the second half of the year. The variation of the rents will be due to limited supply, stable demand and increased interest from It occupiers for office spaces in Whitefield and SBD submarkets.Quick points:
- Rents across the city were unaltered as of the prior quarter
- SBD includes the majority of the total absorption
- All submarkets experienced glimpse of marginal increase in capital values