Bangalore Witnesses Rise in Office Space Absorption
Bangalore, the town that has been driving commercial space absorption within the country, witnessed the very best volume of office space leased in 2019. Led by rising occupancy levels in core office markets, including established business hubs and upcoming growth corridors, the demand for office space across the town remains robust.
Having witnessed an office space absorption to the tune of 36 percent during Jan-Mar 2019, Outer bypass (ORR) dominated the leasing activity in 2019, followed by other peripheral office markets, primarily towards Bellary Road within the North (Source: Vestian). As apprised by Vishal Parwani, Owner, SSB Properties, Bangalore, “North Bangalore continues to be the well-liked region for buyers within the commercial segment. Companies like Apple, Shell, Amazon, and Boeing have over the years, expanded their operations and leased/purchased office spaces here. Soon Ikea is probably going to line up a unit in Tumkur Road. Manyata Tech Park near Hebbal, KIADB SEZ in Devanahalli, and Ecopolis in Yelahanka have garnered much traction from the buyers within the recent past. In South, Sarjapur Road has been witnessing heightened business activity .” Prestige Smart City is an upcoming residential projects in Sarjapur road where one can buy a property as it is near to many IT Parks as well as whitefield location.
Similar to the trend prevalent in 2018, pre-commitments made in under-construction properties continued to drive the commercial market in Bangalore. Moreover, finalisation of those commitments in 2019 increased the pace of economic leasing, and therefore the city thereby reported a 14 percent jump within the total transacted space during the year, as compared to the corresponding figures of 2018. Attractive commercial lease rents, improving social and physical infrastructure, availability of talent, and political stability are a number of the main factors that have cemented Bangalore’s position as a pacesetter in commercial office space.
The demand for office space across Bangalore is primarily driven by expansionary activity within the technology and IT/ITeS space, along side an aggressive growth of the co-working segment. Co-working brands like WeWork, Indiqube, Cowrks, and TableSpace collectively hold a considerable quantum of office space in Bangalore. consistent with a report by Colliers International India, the segment accounted for 15 percent of the entire leasing in Bangalore during 2019. Talking about the expansion of co-working in Bangalore, Kareem Khan, Managing Partner, Network Ventures, avers, “With a gentle influx of migrant population, there has been a paradigm shift within the preference of property buyers.
Skyrocketing rentals of economic units have coaxed the mid-segment buyers to seem for other options beyond the normal properties available within the segment. The trend of co-working has immensely gained popularity within the city, particularly towards Indira Nagar, HSR Layout, Central downtown , and therefore the Outer bypass .” aside from IT-BPM, technology, and co-working; sectors like banking, financial services, insurance, manufacturing and e-commerce, too, account for a big sectoral share in office space absorption across the main micro-markets of Bangalore.
Going forward in 2020, flexible space operators and global captive centres are expected to drive the demand for giant spaces in Bangalore. within the wake of heightened demand, the rentals, too, are expected to soar high within the times to return .
Having witnessed an office space absorption to the tune of 36 percent during Jan-Mar 2019, Outer bypass (ORR) dominated the leasing activity in 2019, followed by other peripheral office markets, primarily towards Bellary Road within the North (Source: Vestian). As apprised by Vishal Parwani, Owner, SSB Properties, Bangalore, “North Bangalore continues to be the well-liked region for buyers within the commercial segment. Companies like Apple, Shell, Amazon, and Boeing have over the years, expanded their operations and leased/purchased office spaces here. Soon Ikea is probably going to line up a unit in Tumkur Road. Manyata Tech Park near Hebbal, KIADB SEZ in Devanahalli, and Ecopolis in Yelahanka have garnered much traction from the buyers within the recent past. In South, Sarjapur Road has been witnessing heightened business activity .” Prestige Smart City is an upcoming residential projects in Sarjapur road where one can buy a property as it is near to many IT Parks as well as whitefield location.
Factors liable for the rise in office space absorption
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| Office Space Bengaluru |
Similar to the trend prevalent in 2018, pre-commitments made in under-construction properties continued to drive the commercial market in Bangalore. Moreover, finalisation of those commitments in 2019 increased the pace of economic leasing, and therefore the city thereby reported a 14 percent jump within the total transacted space during the year, as compared to the corresponding figures of 2018. Attractive commercial lease rents, improving social and physical infrastructure, availability of talent, and political stability are a number of the main factors that have cemented Bangalore’s position as a pacesetter in commercial office space.
Rise of co-working
The demand for office space across Bangalore is primarily driven by expansionary activity within the technology and IT/ITeS space, along side an aggressive growth of the co-working segment. Co-working brands like WeWork, Indiqube, Cowrks, and TableSpace collectively hold a considerable quantum of office space in Bangalore. consistent with a report by Colliers International India, the segment accounted for 15 percent of the entire leasing in Bangalore during 2019. Talking about the expansion of co-working in Bangalore, Kareem Khan, Managing Partner, Network Ventures, avers, “With a gentle influx of migrant population, there has been a paradigm shift within the preference of property buyers.
Skyrocketing rentals of economic units have coaxed the mid-segment buyers to seem for other options beyond the normal properties available within the segment. The trend of co-working has immensely gained popularity within the city, particularly towards Indira Nagar, HSR Layout, Central downtown , and therefore the Outer bypass .” aside from IT-BPM, technology, and co-working; sectors like banking, financial services, insurance, manufacturing and e-commerce, too, account for a big sectoral share in office space absorption across the main micro-markets of Bangalore.
Going forward in 2020, flexible space operators and global captive centres are expected to drive the demand for giant spaces in Bangalore. within the wake of heightened demand, the rentals, too, are expected to soar high within the times to return .
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