Bengaluru in India is going to remain the leader in the country's long-term corporate real estate market, a recent report claims.
According to CBRE, as reported by DNA India, Bengaluru (aka Bangalore) is like to retain its position as the top corporate property market in the coming years given its current sustained demand for office space.
The report from the property consultant revealed that the city's commercial real estate has grown to a record level largely driven by the office space demand and robust supply pipeline. The city saw its office space inventory grow at an average of 13 percent over the last 15 years. From 20 million square feet of space in early 2000, Bengaluru's investment grade office stock grew to as high as 127 million square feet in 2015.
"This has placed the city well ahead of other leading Indian office hubs," CBRE said.
Bangalore also has the highest absorption rate of office space at 12.2 million square feet during 2015 with 32 percent share and 11 million square feet in 2014 with 35 percent share.
CBRE South Asia CMD Anshuman Magazine also said, "Buoyed by improved economic sentiments, steady corporate occupier interest, and its intrinsic strengths as a pioneering hub for technology, R&D, and shared services platforms, Bengaluru is likely to maintain its leadership position in the country's corporate real estate market in the long term."
According to Hindustan Times, Information Technology (IT) and Information Technology enabled Services (ITeS) are the primary contributor in Bangalore's commercial real estate market. IT companies usually occupy an entire tower and a large office wing.
Retailers also drive the commercial property market as they tend to position themselves in the city center or around the area. They consider office retail complexes as good alternatives in the absence of quality retail space because they offer lower rents, not to mention their proximity to residential nodes.
