Bangalore to witness robust commercial & retail space demand

Riding on the wave of high economic activity the demand in commercial and retail space in Bangalore is likely to increase this year. The real estate research firm Jones Lang LaSalle India which had conducted a study revealed that there is every possibility that in 2011 Bangalore will absorb about 7.1 million sq ft of office space with the supply standing at 7 million sq ft during the period. Mr. Abishek Kiran Gupta, head-research and REIS, JLLM said that the secondary and Whitefield micro-markets are likely to absorb the majority of the expected absorption.

During the first quarter of CY10 the total transaction in the office market was for 2.77 million sq ft and this is 7.36 percent more than what was that in the previous quarter. Bangalore witnessed a total net absorption of 958,091 sq ft and 18 percent of this was accounted for the central business district (CBD) and others. Math Works which leased 10,076 sq ft on Ulsoor Road, Impetus Leasing which leased 20,000 sq ft on the Outer Ring Road and some others were the areas where some of the key transactions took place during this period. In the CBD the average rent for office space went up from Rs 76 sq ft to Rs 78 per sq ft during the first quarter of CY10.