Bangalore has emerged as one of the biggest commercial real estate market in India. According to the latest report of CB Richard Ellis (CBRE), this city has outdone a tremendous growth in past five years in terms of office space stock and office space absorption trends.
The tremendous growth of the IT / ITES Industry has revolutionized the residential real estate market, commercial real estate and retail markets and triggered massive infrastructure development. Hence, the available high quality, large office spaces at sub-dollar rental levels gain access to a large skilled workforce, the growth of the both corporate and retail markets and Bangalore’s cosmopolitan culture have worked in the city’s favour, making it as a preferred destination. In future, Bangalore is all set to reach a new milestone in its growth story.
Lease of office space by the top corporate realty market in India:
Bangalore is likely to maintain its leadership position in the country’s commercial real estate market in the long term. Combinations of factors are responsible for making Bangalore as the most preferred corporate destination. Some of the most critical factors are:
The banking and financial services, IT/ITeS and engineering sectors continued to drive demand for corporate office space across leading cities. Hence, more than 40% of the total IT companies in India, the city still continues to attract more foreign investment because of supportive government policies, conducive to growth culture and remarkable talent pool. So this has created a huge demand for commercial real estate spaces in the city for constructing commercial office spaces, IT city centres, IT parks and retail spaces.
Suburban/peripheral micro-markets attracted corporate occupiers:
Many Corporate occupiers leasing remained strong in the suburban/peripheral micro markets of leading cities during the year, because of the availability of large, investment-grade office spaces in these locations.
Demand for the new properties:
The property demand is more than its supply in this year. There is a huge demand for the newly completed properties and however, it leads to rental growth in select peripheral micro-markets. A marginal rental appreciation of around 1-5% q-o-q was reported at Outer Ring Road in Bangalore.
Raising Ground for Start-Ups:
The growing technology sector, stable government and the availability of a huge talent pool has made Bangalore as a fertile base for starting and running a successful business. This blooming start-up culture is also responsible for boosting the demand for commercial realty in Bangalore.
The office space demand for the corporate occupier is expected to continue to grow in the forthcoming months. Commercial office space occupiers will evaluate their requirements on the basis of infrastructure development and cost-effective investments grade office spaces.
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