Post-demonetisation and ongoing recession period of real estate, Bengaluru has seen a remarkable growth in office space transaction with 11.4 million sq. ft. which is highest in last five years, reported by Knight Frank.
The growth has come in the last six months when residential market demand has declined drastically with new launches of residential units at 45 per cent from 65 per cent. Reportedly, 5.3 million sq. ft. of office space transaction has been completed during this period.
“While the growth appears to be tapering, it should also be noted that the IT/ITeS sector, which is the key demand driver of the office market in Bengaluru, has matured and stands on a bigger base today,” says Satish BN, Executive Director South, Knight Frank.
The growth rate is commendable but it has been constrained due to the competition from cities like Hyderabad which is in process of becoming another IT hub of India. The vacancy rate is decreased and currently standing at 6 per cent.
Since the Outer Ring Road office market will continue to have insufficient space the PBD East market comprising Whitefield will get benefit and is more than ready to cater to potential occupiers.
Source: ET Realty