Bangalore commercial real estate - office space in short supply
According to property services firm DTZ Debenham Tie Leung, 7 million sq.ft. of office space was absorbed in Bangalore up to July 2006. Current rate of absorption of office space in Bangalore is 1 million sq.ft. per month, almost 60% of which is driven by the IT/ITES sector.
Supply is tight in the Bangalore CBD area and this is leading to the rise in rentals and capital values in this zone. The vacancy rate in the CBD is 5% and rental values around Rs.47 per sq ft. New office space supply in the peripheral business districts such as Electronics City, Whitefield, Hosur Road, and Outer Ring Road is to some extent balancing the tight supply situation in the CBD. Rental values in the PBD are estimated to be approximately Rs. 22 per sq.ft. Vacancy rates in the PBD are also higher at 13%.
DTZ also expects future growth to come from new areas such as Yelahanka and Devanahalli, close to the new International Airport location.
By INRnews Correspondent
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