Developments in North Bangalore pushes up the demand for office space
In the last few quarters, the commercial sector in North Bangalore has witnessed an outstanding bounce. The Bangalore International Airport is the pivot, which sustains all the activities related to real estate in the region.
The new concept of office space in Bangalore has entered new corridors and is not confined within the four walls. The sole purpose of such a step is to boost the productivity of the employees significantly. According to market statistics, the north of Bangalore has been continuously experiencing a hike in demand for commercial and office spaces. Albeit, a sizeable chunks of plot have been assigned for SEZ, IT and aerospace, the demand from private entities for real estate growth has been commodious.
Reason for the growth in demand for office space
At present, there are a number of ongoing construction for mid-sized commercial offices in North Bangalore. Prominent builders have commercial office properties in pipeline or under-construction between Yelahanka and Hebbal. Upcoming IT industries on Bellary road and Hennur road are expected to stimulate the growth of suburbs of North Bangalore as the primary office market.
The strategical position of the international airport stands out the key driver for the realty growth in the region. Rate for commercial properties have witnessed an upward trend mainly because of the elevated road by NHAI- National Highways Authority of India over the proposed Metro Rail link and Bellary road.
Demand for office space
Nearly 2 million sq ft of space has been leased in North Bangalore in the last few quarters. According to JLL reports, the major drivers behind the growth of office space are the financial services and IT/ITes sector. Both these segments account for almost 60 to 70% of the overall demand for commercial space.
With firms intending for campus expansions, the north of the city has witnessed a surge in demand for office space. Proximity to Outer Ring Road also makes the region a hotbed for office space. ORR has given a major impetus to the growth of the North Bangalore along the route. With the endeavors of BDA to built flyovers and underpasses along the ORR, there has been a significant reduction in time travel for commuters.
The enhancement of the 22-km stretch from National Highway-7 from the Hebbal flyover to airport and HSRL from CBD to airport have contributed greatly towards the growth of office demand in this region.
Role of Infrastructure
Infrastructure enhancement are likely to fuel the growth of capital values. According to property consultants, growth in infrastructure has worked in favor of north Bangalore. The first mall at Yelahanka (under construction) and the upcoming hotel projects are likely to give immense boost to the social infrastructure.
Planned Peripheral Ring Road and connectivity to Devanahalli and international airport will further enhance the demand for commercial space. To add to it, the region near the airport will undergo a complete transformation after the establishment of Information Technology Investment Region (ITIR), International Finance Centre, Hardware
Park etc.
According to market reports, the best performing localities in 2012 were RT NAgar, Hebbal and Sahakar Nagar in North Bangalore. These areas experienced high anticipation for office space because of improved infrastructure, enhanced connectivity and proximity to BIAL.
North Bangalore continue to yield considerable commercial sales, because of its affordable price and proximity to major workplace centers. Growth of infrastructure have inked the openness of the occupiers to shift in this region. Hence investing in real estate projects in this area will promise lucrative returns for a developer and an investor.
