Bengaluru absorbs about 13-14 million sq ft of commercial office space every year, says Colliers Research
Bengaluru absorbs about 13-14 million sq ft of commercial office space every year, which is approximately one-third of the total space leased in India and the trend is likely to continue.
About 26 million sq ft of Grade A office buildings are under various stages of construction in the city which will complete by 2020.
Most of this upcoming supply is concentrated in Outer Ring Road (ORR), which is a major commercial hub in Bengaluru, says Colliers Research.
“As on today, within ORR and Whitefield, the commercial office space stock accounts for approximately 78 percent of Grade A stock in Bengaluru. With infrastructure projects like the ORR metro line and planned road improvement projects in and around these areas; the market is likely to remain bullish with respect to overall office space absorption in next 2-3 years, driven by IT-ITes, followed by engineering and manufacturing and BFSI sectors. However, with more office supply coming in these markets, the pressure on infrastructure and support sectors is to increase multi-fold,” says Ritesh Sachdev, senior executive director, Occupier Services, Colliers International India.
The story is good as far as the real estate development of the city is concerned, however, the unwelcome news is that the city’s infrastructure is unable to keep pace with the vast real estate development.
Bengaluru has seen an increase of 47 percent in population during the last decade (2001-2011) and the vehicle population growth rate is even higher than the population growth rate.
The state government has started various initiatives and is going in the right direction to solve the infrastructure issues; Namma Metro is one of the initiatives. Phase 1 of the project connecting Nagasandra to Puttenahalli (Green line i.e North-South) and Mysore Road to Bayapanahalli (Purple line i.e East- West) corridors have been completed.
Phase 2A, connecting Mysore Road to Challegatta near Kengeri and Yelachenahalli to Anjanapura is set to be completed by December 2018. This will push the demand for micro markets such as Mysore Road and Bannerghatta Road.
Construction of underpass and widening of a flyover along ORR at Hebbal Junction will improve commute time within the city’s major employment hubs.
The National Highway Authority has also notified land for widening of NH 209 (948) till Kanakapura. With good access to other parts of the city, these micro markets are expected to improve further.
Although the government has started taking initiatives, the pace of development is slow."In our opinion, the government should also look at making the city sustainable to natural calamities. The time and again flooding of the city bring it to its knees. Along with the introduction of new infrastructure projects, the government should also focus on retrofitting the existing infrastructure", says the report.The Great Diwali Discount!
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