Karnataka - Bangalore   

Corporates looking for large office space

K. Satyamurty

Demand is buoyant, says Cushman and Wakefield market study

Bangalore: The stretch from Marathahalli to Sarjapur Road junction is witnessing a boom in commercial property development. Corporates are looking for medium to large office space there and the builders are obliging.

Corroborating this trend, international property management consultants Cushman and Wakefield say, in their latest market study, that demand remains buoyant with companies seeking campus style developments. The demand for more office space is likely to continue through the second half of the year.

The south-east corridor and the north Bangalore quadrant along Outer Ring Road remain the most active real estate locations. Real estate agents are feeling positive with several proposed information technology and information technology enable services firms and technology parks and special economic zones planned and with the Government attempting to meet infrastructure needs. Supply and demand are expected to match each other in the coming months.

Many developers, including those with an all India presence, have been developing property in areas, including Whitefield.

Meanwhile, areas just off the Central Business District are witnessing increased activity too. The Prestige-UB City, with almost 1.2 million sq ft office space, is nearing completion.

On the flip side, prices have come down since the peak of 1996-97 in certain areas in the central part of Bangalore. In the Central Business District, commercial property sells for Rs. 5,500 and off the Central Business District, Rs. 5,300; a fall of 18.5 per cent and 10.2 per cent in six years. The preference of large companies to look for larger space with an eye for future expansion makes them look for property in peripheral areas where the price quoted is Rs. 4,400 per sq ft, some developers say.

A significant factor impacting the property market is that Bangalore Metropolitan Regional Development Authority (BMRDA) has stopped land use conversions such as change from agriculture to commercial or residential usage. The BMRDA has proposed to come out with a master plan by the end of December to have more planned development. This is likely to affect land use conversions and prices in locations such as Tumkur Road and Mysore Road which do not come under Bangalore Development Authority, Bangalore International Airport Area Planning Authority or Bangalore Mysore Infrastructure Corridor Area Planning Authority.

There were several transactions in the recent weeks, including the one at Manyata Embassy Business Park in Hebbal, where ABZ Information Technology leased around six lakh sq ft built-up area.

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