Commercial Property

The market of commercial property in Bengaluru is getting appreciated by leaps and bounds just because of the exponential development of the Information technology industry especially in the sphere of software technology and application. Some of the other reasons for the boom in commercial property are good transport facilities and uninterrupted electricity supply.

Office space

With the boom in the information technology sector the space requirement for offices in Bengaluru has exploded. The office space required for the IT enabled services ranges from 500 square feet to about 2,00,000 Square feet. The services provided from this sized infrastructure can be call center, medical transcription or even Business process outsourcing services. The prices of the offices vary from locality to locality. If the locality is near to the centre of the city it is supposed to be very expensive. On the contrary if it is on the outskirts of city in areas such as Bannerghatta, Electronic City, Kanakpura, Sarjapur, Hoskote, Kengeri, and Whitefield then the price is going to be comparatively less.

Retail Space

The need of the retail space has increased because of the influx of many highly paid IT professionals. These professionals usually run short of time. Thus, they are like to do shopping from under a single roof. It is because of this that there are large retail markets and showrooms being established in the City. Large shopping complexes and retail outlets are being set up. The price of the retail space has also sky rocketed. The concepts like “theme malls” that cater to particular segment of prospective customers are now coming up.

Commercial Rental

The prices of offices have sky rocketed just because Bengaluru has been preferred to Mumbai because of less congestion. Most of the investors of the IT industry and IT enabled services have made Bengaluru their headquarters. The IT/ITES sector counts for three quarters of the total commercial property transaction. The prime CBD and the secondary business districts seem to be the main focus of the commercial rental market.

Business areas:

» The Central Business District (CBD) includes Brigade Road, St. Marks Road, Museum Road, Vittal Mallya Road, Richmond Road, Madras Road, Brunton Road, M.G Road, Cunningham Road, Residency Road, Lavelle Road, Infantry Road, Dickenson Road, and Church Street.

» The Secondary Business District (SBD) includes Indira Nagar, Koramangala, Racecourse Road, Jaymahal, Airport Road, CMH Road, Jayanagar, and Sadashiv Nagar.

» The suburban locations include J.P. Nagar, Electronic City, Sarjapur Road, Whitefield, Banerghatta Road, Hosur Road, and Outer Ring Road

Retail rental values

The price trend is nearly the same as that of office space. MG Road and Brigade Road are considered to be on the higher end with respect to the rental values. The demand of the retailers is increasing but the availability of vacant space is running short. On the other hand the existing malls are getting a congested look especially on the weekends when crowds throng for getting their weekly groceries. The occupier demand in the existing malls has increased.

Thus it can be said that the present trend of booming commercial property market is going to continue till the IT /ITES sector development continues.