Demand for office space in Bangalore increases due to attractive rates
The current commercial real estate in Bangalore has been witnessing a boost due to the increased demand for the office space despite the growing uncertainty in the European markets.
Various factors are responsible which makes the city ideal for investors. Factors like the availability of the Special Economic Zone (SEZ) for IT expansions, increased connectivity to the Outer Ring Road (ORR) through the advanced infrastructure and advanced Metro development corridor are majorly responsible for the increased demand in office spaces.
The main factors responsible for the increased demand for office spaces is the fact that Bangalore is the only such place which houses the mid-sized firms and small and medium enterprises (SMEs). Bangalore real estate is chosen over other cities by the global innovation centers due to its eco-system and talent pool availability. Office spaces along the ORR and Whitefield are equal to that of the Tier II cities. Also the city is contributing in creating a sustainable business eco-system along with social infrastructure via public-private partnerships.
According to a latest report, the risk-aversion concept has been replaced by the cautious optimism concept triggering an increased pro-active occupier behavior. However, in comparison to other countries, the Indian markets have always remained stable in terms of affordability despite a boost in 2012. It further has widened base of occupiers with an increased realistic supply sentiment which is expected to get stability across the Indian markets.
Another report states that the office market in Bangalore witnessed the continuation of the leasing activity in the beginning of 2013 with the overall vacancy in the city dropping due to the stable demand from the occupiers and the restricted supply. There were no new completions in January in the city and the rentals remained stable in the city’s sub-markets due to the stable demand and controlled supply. Perhaps there was an appreciation in the capital value in the sub-markets.
Currently, cities like Whitefield and ORR are dominating and are the most preferred locations due to their attractive prices. However, one of the crucial factor responsible for deciding the location is the cost of business operations. It was stated that these areas are witnessing a rapid growth of SEZ and non-SEZ spaces with aggressive pricing models by the developers.
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Bangalore Real Estate, commercial real estate in bangalore, increased demand for the office space, increased demand in office spaces, medium enterprises (SMEs), Outer ring road (ORR), Public-private partnerships, Special Economic Zone (SEZ)
