Office space growth in Bangalore gears up for No 1
Locating for a well-equipped and amiable office space in the country is no more a hard nut to crack, as Bangalore gears up to become the biggest office space provider in the nation, followed by NCR and Mumbai. According to CBRE officials, in the next two years, the commercial Grade A office markets of Mumbai, Delhi and particularly Bangalore are likely to witness a substantial hike in growth rates in the entire Asian region.
Going by the expected recovery rate of the Indian and global economy and based on the positive signs sent out by the Central Government to encourage the inflow of business investments, the office demand in the country is likely to grow. Experts confirm it will grow with 10% by 2013 end and 20% by 2014.
In comparison with other cities
As per CBRE reports, the three metropolitan centres (Bangalore, Mumbai and Delhi NCR) along with Tier II regions (like Hyderabad, Chennai, Kolkata and Pune) have nearly 150 million sq ft of space in line for completion. Such office spaces will see light of the day in the next 4-5 years.
Property analysts compare the growth of Bangalore equivalent to that of Shanghai’s office market, while NCR and Mumbai with that of Bangkok and Kuala Lampur. Experts suggest that the Outer Ring Road stretch is expected to experience more than 50% of the total office space supply that is set to hit the Garden City in the years to come. The remaining office space in Bangalore will find its due relevance in North Bangalore region followed by Electronic City and Whitefield.
Absorption of market space
The last 10 years has borne witness to an epidemic growth of India’s investment grade commercial office footmark. Making a huge leap of Grade A office space stock of 400 million sq ft (in 2013) from 42 million sq ft (from 2003), the sector boasts of 800% growth in the last decade that is worth a special mention.
By 2017 end, experts suggest NCR and Bangalore (mainly) to contribute more than half of the total office space requirements.Furthermore, Bangalore has a number of planned and under-construction IT/ITes spaces that is at par with current requirements. Simultaneous with the micro-markets in Noida and Gurgaon, Bangalore micro-markets are expected to set the trend for office spaces in the country.
