INRnews - Indian Real Estate News

Real estate services firm Cushman & Wakefield released this information in a recent research report. 

Traffic congestion, parking issues, deteriorating road conditions and low vacancy rates (less than 5%) in the CBD and its vicinity, has forced corporates to evaluate real estate options in the suburbs. The suburban markets continue to offer new projects with large floor plates and its growth potential along with excess supply has ensured lower rental costs. These micro markets have easy access, infrastructure and residential localities in the vicinity.

The government continued its efforts in improving infrastructure to support the rising pressure on the city. BMRDA announced plans to construct an access controlled, 4-lane, 30 km highway connecting Nagavara on the Outer Ring Road to the new international airport in Devanahalli and this will encourage commercial development across sectors.

Further, the state government has approved the new industrial policy enabling development of industrial areas in excess of 500 acres and provided incentives such as capital investment subsidies and entry tax waivers.

Rentals have broadly remained stable during the last month and are expected to remain at the same levels across most micro markets according to Cushman and Wakefield. CBD and its vicinity, however, is expected to witness a marginal increase in rentals, due to the demand-supply
imbalance. Demand from corporate tenants planning their expansion will continue within suburban and periphery locations as well. Demand for medium size offices will also increase as new companies try to establish base in Bangalore.

Capital Values and rentals have both increased in the CBD area over the last 12 months, by over 20%. The chart on the left shows current capital and rental values.

Recent Leasing Transactions

• DivyaSree Techno Park, Whitefield - Accenture leased approximately 300,000 sq.ft. built-up area.
• Prestige UB City, Vittal Mallya Road - Pivotal leased approximately 27,000 sq.ft. built-up area.
• Prestige UB City, Vittal Mallya Road - ABN AMRO Bank leased approximately 40,000 sq.ft. built-up area.
• Prestige UB City, Vittal Mallya Road - Ernst & Young leased approximately 27,000 sq.ft. built-up area.

Recent Investment/Sale Transactions

• Sartorius purchased 10 acres of industrial land along with a building from AMO, at Nelamangala.

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About Cushman & Wakefield

Cushman & Wakefield is the world’s pre-eminent real estate services firm. Founded in 1917, the firm has 192 offices in 58 countries around the globe, and more than 11,000 talented professionals. The firm delivers integrated solutions by actively advising, implementing and managing on behalf of landlords, tenants, and investors through every stage of the real estate process.  These solutions include helping clients to buy, sell, finance, lease, and manage assets. Cushman & Wakefield also provides valuation advice, strategic planning and research, portfolio analysis, and site selection and space location assistance, among many other advisory services.