Office space market:Bangalore topples the chart
For developers in Bangalore, the year 2014 has nothing but the best to offer. This statement can hold true to the fact that Bangalore is expected to topple the chart of the office space market in the nation, on account of expansion of IT/ITes and multinational firms. As per property consultants, Bangalore will soon surpass the landmark of 100 million sq ft of leased A-Grade office space by March 2014.
Given the last year reports, Bangalore emerged as the biggest office-space taker, absorbing around 40% of the total supply of 27.3 million sq ft. Much of it can be attributed to the IT/ITes sector. While the multinational companies take-up in the share was 54.3%, the IT sector accounted for 54.3% alone.
In comparison to other cities
By the end of 2013, the cumulative leased office space stood at 99.94 million sq ft, while for Mumbai it stood at 93.05 million sq ft. For Chennai, Delhi-NCR, Hyderabad and Pune, the cumulative leased office space stood at 52.11 million sq ft, 74.19 ,million sq ft, 38.62 million sq ft and 43.97 million sq ft respectively.
As per experts, the total A-grade commercial office space stock for the seven metros in the country stood at 424.8 million sq ft, out of which Bangalore has 24% share. Being one of the most resilient real estate markets, Bangalore offers commercial space at competitive rates, in comparison to Mumbai, Delhi and Gurgaon.
Why it tops the list?
A famed entrepreneurial spirit, coupled with multi-faceted culture makes the city one of the most lucrative destinations to set up offices. According to property consultants, the expansion of companies in the city will give a fillip to the office space market in Bangalore that will eventually result in a growth of 16% in 2014, in comparison to the last year.
Majority of the office space demand in the city will be witnessed in suburban locations such as Outer Ring Road belt and Whitefield. As per the economic, environment and cultural parameters, Bangalore is ranked the ideal location for business offices. Add to it, its excellent connectivity, availability of office space according to budget, high quality of talent pool and a high quality education system.
