The Central Business District (CBD) of MG Road, Richmond Road, Residency Road and Lavelle Road witnessed sluggish transaction activity during the fourth quarter. There were no significant project completions, and rental values remained mostly stable during the period.
The Extended Business District (EBD) of Indira Nagar, Koramangala, Old Madras Road and CV Raman Nagar observed an increase in transaction activity for small to medium sized office spaces. No new supply addition was observed and rental values of commercial developments also maintained stability in the present quarter.
The Peripheral Business District (PBD) of Whitefield and Electronic City witnessed strong demand from corporate occupiers, leading to an increase in absorption levels during the quarter. The micro-market witnessed the closure of a few large format transactions in some of the prominent tech parks. In terms of new office space supply, Whitefield witnessed significant addition in the commercial segment. Owing to healthy demand–supply dynamics, rental values remained largely stable on a q-o-q comparison.
The Sarjapur-Outer Ring Road (ORR) continued to witness significant interest from corporate occupiers, particularly those from the IT/ITeS sector. This region witnessed closure of few large sized transactions mainly in the SEZ segment. On the supply front, no prominent development completions were witnessed during the review period. However, a few commercial developments nearing completion over the next few months are likely to spur transaction activity in this micro-market. Sustained occupier interest and lack of available options in the non-IT/IT segment have contributed towards a rental appreciation of 5–6% on a quarterly basis. Rental values across SEZ developments, meanwhile, remained largely stable during the period.
South Bangalore witnessed a slowdown in demand for office space with limited absorption witnessed during the fourth quarter. No prominent development completions were reported, while rental values remained stable during the review period.
Commercial leasing activity picked up in North Bangalore, after negligible absorption levels witnessed during the previous quarter. In terms of supply, this micro-market witnessed the addition of some commercial space in Hebbal. Owing to numerous infrastructure projects— such as the Elevated Expressway, the KIADB Aerospace Park and KIADB Hardware Park currently underway—this micro-market has the potential to emerge as the future growth driver for Bangalore’s office market. Continued occupier enquiries led to an appreciation in rental values by 5–6% on a q-o-q basis.