By Accommodation Times News Services
Bengaluru’s office space stock has grown at 13% on average in last 15 years helping it become the country’s top corporate realty market, says property consultant CBRE. The city is likely to maintain its leadership position in the country’s corporate real estate market in the long term with robust supply pipeline.
“Bengaluru’s investment grade office stock grew exponentially from less than 20 million sq ft in the early 2000s to 127 million sq ft in 2015 at a compound annual growth rate (CAGR) of 13% over the last 15 years. This has placed the city well ahead of other leading Indian office hubs,” CBRE said in a statement.
Office space stock of other prominent commercial hubs such as Delhi-NCR and Mumbai stood at 95 million sq ft and 87 million sq ft, respectively. Sustained demand for office space has driven commercial real estate growth in Bengaluru that crossed a milestone in mid-2013 by becoming the first Indian office hub to join the global club for 100-million-sq ft office markets.
CBRE South Asia CMD Anshuman Magazine 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.” The successful implementation of the government’s policy schemes, such as Digital India, Skill India, and Make in India, will be critical for the further development of the city’s business environment, he added.
According to CBRE’s latest report ‘Bangalore: The Star That Shines the Brightest’, the city has led the country’s corporate real estate market among leading cities over the last five years in terms of office space stock as well as office space absorption trends.
The absorption (leasing) of office space stood at 12.2 million sq ft during 2015 with 32% share and 11 million sq ft in 2014 with 35% share, the report said. The new supply stood at 12.7 million sq ft in 2015 with 33% share and 12 million sq ft in 2014 with 38% share, it added.
About 23 million sq ft of new office supply is expected to be added by the end of 2017. “As India’s technology sector expands its horizons, Bengaluru has emerged as a dominant growth frontier offering the country’s new economy sectors such as information technology, biotechnology, aerospace, research and development, clean energy and other services sectors, a new growth paradigm,” the statement said.