Infrastructure develops in Bangalore: Fuels office space
Investing in realty sector has always been deemed as one of the feasible avenues to go for and with growth of infrastructure in Bangalore, the real estate market of the city seems to be coming of age. With the growth of infrastructure in the city, property consultants see a ray of sunshine about the outlook of commercial real estate sector of the city, in terms of return on investment.
Micro-markets (like Bannerghatta Road, Whitefield, Old Madras Road and Electronic City) hold the key to deliver Grade A office spaces to buyers, however, quite recently the trend has gone for a change. The recent change is leasing of office space in the Peripheral Business District and Central Business District like Old Airport road, New BEL Road, Jayanagar, Indiranagar and JP nagar.
According to property experts, any location which lays more emphasis on residential segments and let commercial and entertainment options fall between the cracks, is not likely to sustain for a longer period. Likewise, a commercial hub which has dearth of residential units, is likely to rank itself in the dislike list of the homebuyers since, people always look for options which can cut down their commuting time to work.
Strategic location and how it aids to connectivity
Accessibility and location still persist as the key demand drivers for an area. The office space in MG Road and its surrounding areas again gain the limelight, since accessibility through the region has become easy due to the winding up of the MG Road Metro Station.
Furthermore, the takeup of A-Grade office space in the nation has witnessed a growth of 74 percent QoQ basis for the second quarter and Bangalore is on the hook for this growth since it recorded large transactions of 1 million sq ft.
The decisive factors, which drive companies to settle for office space in a location, are- support of infrastructure (good road and smooth transport), parking facilities and amenities like water and power. With the completion of the Metro construction, the graph of realty growth in areas such as KR Puram, Indiranagar and MG Road, which support commercial development, have witnessed a sudden hike.
Micro markets-Highlights
Connectivity and excellent infrastructure support are the two pillars on which the commercial space growth of sub-markets reckon on. The ORR has been instrumental in beefing up the commercial realty in this belt. Furthermore, stretches on Sarjapur Road, Old Madras Road and Marathahalli have opened the doors for immense possibilities for realty development in these regions.
Suburban business districts
Widely categorized as high street locations, the stretches on Koramangala, Indiranagar and Jayanagar have now shifted gear to mixed development. Traditionally categorized as a residential location, these areas now sport commercial and retail facilities. Office spaces situated in these areas are blessed with the option to access good infrastructure along with quality housing.
Such areas, which have accessibility to Metro Rail, hold more potential in terms of retail realty development. Functioning of the metro rail connectivity to Yeshwanthpur, Jayanagar and Kanakapura Road will further raise the floor area ratio(FAR) few notches up, thereby contributing significantly towards the growth of such residential localities in terms of retail development.
In the overall real estate development, infrastructure plays a pivotal role in giving a new edge to a locality. Lack of adequate infrastructure or sluggish infrastructural developments can adversely affect the investment potential of an area and lead it towards a downfall.
