Bangalore office space to witness 50 percent growth by 2016: Report
Bangalore- Bangalore’s office market which has witnessed an annual growth rate of 12% in the past four years, is expected to touch 100 million square feet by 2016, revealed a report by Jones Lang LaSalle. That is a doubling of the stock in just seven years from 2009, and a 50% expansion to the current level of around 70 mn square feet.
Office space is rapidly expanding in areas like Sarjapur Road to Old Madras Road (Outer Ring Road) in south-east Bangalore, Whitefield in East, Thanisandra and Hebbal in North. The city observed the highest office space absorption in the year 2011.
Currently the leasing activity of Bangalore’s office market has 10 per cent vacancy level whereas the national average is 15 per cent. The demand-supply ratio of office spaces in Bangalore seems to be stable compared to other metros. As an outcome, an increase in office space rentals is expected over the next few years.
The key factors responsible for the city’s active growth are the availability of quality office spaces and skilled workforce, said Karun Varma, MD, Jones Lang LaSalle India.
According to the report, the office realty growth will pave way to infrastructural development, residential and retail development, besides increasing employment opportunities.
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