Wednesday, October 9, 2013

IT sector drives commercial space demand in Bangalore

Bangalore office market is expected to absorb around 8 million sq ft by end-2013 followed by revival in demand from IT/ITeS sector.

"Bangalore saw 118 per cent Upsurge in absorption in Q2 2013 over Q1 2013. However there is a drop of 28 per cent as compared to Q2 of 2012. Majority of the demand came from IT/ITes segment. Consolidation of office spaces by most large sized companies will continue to be the norm," says Samantak Das, chief economist and director - research Knight Frank. Whitefield, Sarjapur Road ORR, Marathalli ORR remains the favourite destination for corporate to rent office spaces.

Figures provided by property consultants-Knight Frank-shows that Bangalore commercial space absorption was recorded 105 million sft till date as compared to other top Indian cities followed by growth in leasing from IT/ITes firm. Additionally NCR and Mumbai recorded 115 million sft and 99 million sft till date.

The city also saw vacancy level drop to 13 per cent in the second of 2013. "Absorption levels have been trending down since 2011, however limited supply has kept vacancy levels in check. Additional 7.5 mn.sq.ft is expected to enter market in 2014," says Das. Commercial space vacancy level across cities like Mumbai, NCR, Bangalore and Pune is expected to drop to 17 per cent by the end of 2017 as compared to 20 per cent 490.3 million sft in 2013.

In contrast, Bangalore's residential market has seen absorption levels increasing in recent years unlike other frontline cities like Mumbai and NCR. Property absorption level has increase 22 per cent in the first half of 2013 mainly driven by homes in the mid income group.

According to the report around 28,000 units were launched during H1 2013,w with 53 per cent of the units launched were priced under Rs 50 lakh. Around 22,000 units were absorbed during H1 2013, a jump of 22 per cent over same period last year. Average price appreciation of 8-13 per cent was recorded in Q2 2013 over the prices in Q2 2012.

"We expect to double our sale in coming months. Southern market is resilient as compared to other geographies like in Mumbai and NCR,as property cost is still affordable here. We have also not seen substantial increase in prices in South," says Jackbastian Nazareth group CEO Puravankara Projects. The company plans to launch approximately 10.87 million square feet this fiscal across South.

Agreeing with the same MaheshPrabhu, director -- finance, Century Real Estate says that project that are competitively priced are selling faster. "Sub Rs 50 lakh product in good location is selling faster . We are seeing stable sale and has priced high end properties at Rs 6500-7500 per sft with an idea is to liquidate it faster in the market," he says.

For more information visit : http://economictimes.indiatimes.com/markets/real-estate/realty-trends/it-sector-drives-commercial-space-demand-in-bangalore/articleshow/23724685.cms

19 comments:

  1. Leasing a commercial property is one way to give your business permanence and stability. But a commercial lease places most of the financial responsibility for leasehold improvements on the renter, rather than the landlord. It's important to thoroughly research a commercial property before you sign a lease, to determine whether you have a reasonable chance of paying back the cost of leasehold improvements over the course of the lease term.
    commercial properties Baltimore

    ReplyDelete
  2. I agree with your point that in Bangalore IT Sector are drive commercial property in Bangalore.
    Residential Properties Bangalore

    ReplyDelete
  3. Thanks for your information. Here I would like to introduce most trusted Builders like Faith Inc property developers. Now providing Flats in Bangalore

    ReplyDelete
  4. Fusion Homes is the most recent presenting of Fusion Buildtech engaging to be a home of good living at a low-cost at the most preferred household location Better Noida (West).

    ReplyDelete
  5. Fusion Homes is the latest providing of Fusion Buildtech appealing to be a residence of good living at an affordable cost at the most selected household location Better Noida (West).

    ReplyDelete
  6. My interaction with them begun because I was employed in a very swanky office construction in part 16, noida - this construction is renowned as Logix reserve and is one of the oldest (if not the oldest) building of Logix Group Noida.

    ReplyDelete
  7. Hi, i am appreciate this information provided by you.Please continue to providing theses type of information in future. Shri Siddhivinayak Associate and Developer provided Flats in Pune.Flats are available in Sinhgad Road pune area.

    ReplyDelete
  8. Thanks for sharing informative blog post.This is a really well written blog.
    World Trade Center Noida is top class commercial project in Noida for business places.

    ReplyDelete
  9. Bangalore5.com is the first exclusive Bangalore property portal dedicated to serve the apartments and gated community people in Bangalore. bangalore5, 2bhk apartment for sale in Bangalore, 2bhk apartment in Bangalore, Bangalore property.

    bangalore5.com

    ReplyDelete
  10. The demand of IT sector in Bangalore has let to the increase in demand of commercial spaces which in turn is the reason for the increase of residential areas. Looking for a 2BHK luxury apartment in Bangalore in 50Lakh budget but very difficult to find one.

    ReplyDelete
  11. Hi dear, your work is impressing. I found it worth reading!
    Supertech Micasa is launched by one of the eminent real estate firms that have been serving the country from past twenty five years.

    ReplyDelete

  12. Your work is really admirable. You have been successful in delivering the important information. I can also share bit of information aboutSupertech Astralis Noida

    ReplyDelete
  13. This comment has been removed by the author.

    ReplyDelete
  14. Mahidhara Fortune City Projects is one of the most reputed real estate builder from Bangalore. It has a thoughtful design and is well equipped with all the modern amenities as well as basic facilities. The project offers various plots and villas in Bangalore.
    Plots in Electronic City Bangalore

    ReplyDelete
  15. Very informative details about the commercial space demands for the IT sector. Thank you very much for the sharing.

    Residential house for sale in coimbatore | Flats for sale in coimbatore

    ReplyDelete
  16. This comment has been removed by the author.

    ReplyDelete

  17. Very Good and Informative blog.I have also some information about luxurious real estate property inBangalore.Provident Devanahalli

    ReplyDelete
  18. Great blog !! Gives a good perspective of property market. I think now in 2019 the demand is more for compact, suburban apartments with affordable pricing. Main areas are like sarjapur-varthur, whitefield, near international airport, etc

    We came across one such project near varthur, Ashish Green.

    https://sites.google.com/view/ashishgreen/home

    More about Ashish Green

    ReplyDelete

Pingates