The boom in IT industry in Bangalore started because of the large availability of land parcel at attractive prices, easy available of skilled manpower in addition to the malleable weather.The boom in IT industry gave rise to the demand for commercial reality spaces in main locations in and around the city with increasing absorption rates.
A report by Vestian Global Workplace Solutions showed that Bangalore with eight per cent of year-on-year (y-o-y) growth in absorption; there is a stock of 112 million sq. ft. of office space.In the 3Q2013, including Mumbai, Bangalore, Hyderabad and Chennai the total supply of office space accounted to 4.72 million sq. ft. in which Bangalore alone contributed with 3.16 million sq. ft. of new supply of office space, which was an increase by 50 per cent when compared with the earlier quarter. Bangalore also emerged with the highest absorption of office space at 2.05 million sq. ft. and next came Mumbai with 1.01 million sq. ft.
One of the officials from Cushman & Wakefield stated that Bangalore City has become point of interest for IT companies and the city has the highest demand for office space and over the last few years the average leasing is about nine million sq. ft. Bangalore City has emerged as the top IT/ITeS destination due the easy availability of efficient manpower, steady political situation, developing infrastructure and increase of IT and ITeS companies. The rise in office space demand is driven by the increasing demand from IT-ITeS companies, reasonable rentals and interest of IT companies to set up their office in the city.
Locations and other flexibilities available in commercial property
The IT/ITeS companies are the main driver in the demand for office space and accounted to around 62 per cent of absorption. The absorption rate of other sectors like consulting and manufacturing is around 10 and 11 correspondingly. In regard to the same the Outer Ring Road (ORR) and Whitefield appeared to be dynamic in commercial segment and witnesses about 46 and 30 per cent of total net absorption rate respectively. In 2013 about 2.4 million sq. ft. was pre-committed and about 77 per cent was observed in the peripheral locations of the Outer Ring Road (ORR).
A report of Vestian Global stated that the in the next three years, the Outer Ring Road (ORR) will emerge as a preferred IT hub from IT/ITeS companies as this micro-market has saw a significant movement in the planned supply in the last three year. This micro-market is likely to see drive by 2015 due to the expansion of IT campuses in Bangalore North.
A view on commercial property.jpg)
Bangalore City is likely to witness the maximum demand for commercial property in the country and 2014 is expected to be vital due to the approaching general elections and give impetus in the development of the sector that would prolong till 2020. It is also expected that the first quarter of 2014 will see some huge deals that are the leftovers of the 2013. Taking into account the Request of Proposals (RFPs) in the market, 2014 is likely to witness some huge transactions and majority to be contributed from the IT/ITeS companies. The Outer Ring Road (ORR) micro-market is emerging as the preferred IT destination bearing in the mind the amount of pre-commitments in this location in 2013.
A report by Vestian Global Workplace Solutions showed that Bangalore with eight per cent of year-on-year (y-o-y) growth in absorption; there is a stock of 112 million sq. ft. of office space.In the 3Q2013, including Mumbai, Bangalore, Hyderabad and Chennai the total supply of office space accounted to 4.72 million sq. ft. in which Bangalore alone contributed with 3.16 million sq. ft. of new supply of office space, which was an increase by 50 per cent when compared with the earlier quarter. Bangalore also emerged with the highest absorption of office space at 2.05 million sq. ft. and next came Mumbai with 1.01 million sq. ft.
One of the officials from Cushman & Wakefield stated that Bangalore City has become point of interest for IT companies and the city has the highest demand for office space and over the last few years the average leasing is about nine million sq. ft. Bangalore City has emerged as the top IT/ITeS destination due the easy availability of efficient manpower, steady political situation, developing infrastructure and increase of IT and ITeS companies. The rise in office space demand is driven by the increasing demand from IT-ITeS companies, reasonable rentals and interest of IT companies to set up their office in the city.
Locations and other flexibilities available in commercial property
The IT/ITeS companies are the main driver in the demand for office space and accounted to around 62 per cent of absorption. The absorption rate of other sectors like consulting and manufacturing is around 10 and 11 correspondingly. In regard to the same the Outer Ring Road (ORR) and Whitefield appeared to be dynamic in commercial segment and witnesses about 46 and 30 per cent of total net absorption rate respectively. In 2013 about 2.4 million sq. ft. was pre-committed and about 77 per cent was observed in the peripheral locations of the Outer Ring Road (ORR).
A report of Vestian Global stated that the in the next three years, the Outer Ring Road (ORR) will emerge as a preferred IT hub from IT/ITeS companies as this micro-market has saw a significant movement in the planned supply in the last three year. This micro-market is likely to see drive by 2015 due to the expansion of IT campuses in Bangalore North.
A view on commercial property
Bangalore City is likely to witness the maximum demand for commercial property in the country and 2014 is expected to be vital due to the approaching general elections and give impetus in the development of the sector that would prolong till 2020. It is also expected that the first quarter of 2014 will see some huge deals that are the leftovers of the 2013. Taking into account the Request of Proposals (RFPs) in the market, 2014 is likely to witness some huge transactions and majority to be contributed from the IT/ITeS companies. The Outer Ring Road (ORR) micro-market is emerging as the preferred IT destination bearing in the mind the amount of pre-commitments in this location in 2013.
Visit Sovereign Developers Reviews official blogs to read more articles related to real estate industry.
No comments:
Post a Comment