Popularly regarded as India’s Silicon Valley, Bengaluru leads the pack of IT hubs in India. Pleasant climate, an international airport, and abundance of talent have turned Bengaluru into an international IT destination. It’s no wonder that Bengaluru has emerged as one of the largest contributors to commercial real estate in the country. According to experts, a whopping 26 million sq. ft. of office space will be added to the city by 2020.
With high demand for Grade-A stock, Bengaluru absorbs about 13-14 million sq. ft. of commercial office space every year. In fact, the city accounts for around one-third of the total office space leased in India. IT/ITeS, followed by Engineering & Manufacturing and BFSI sectors remain the prime demand drivers for CRE in Bengaluru. The city is also developing as a testing ground for the recent trend of co-working spaces and is host to more than a quarter of the country’s technology start-ups.
Among the various micro-markets spread all over the city, Outer Ring Road (ORR) and Whitefield have come up as leading commercial hubs and make up for about 78 percent of the city’s Grade-A stock. Upcoming infrastructure projects like the ORR metro line road improvement projects are likely to keep investor and occupier interest alive in these micro-markets.
The flip side of this breakneck development is the pressure it exerts on Bengaluru’s infrastructure. The city has witnessed a population explosion to the tune of 47 percent over the last decade. What’s even more worrying is that the vehicle population has grown at an even higher rate raising pollution levels to dangerous levels.
To ensure that Bengaluru’s infrastructure keeps pace with the real estate development, the state government has initiated the following projects:
1. Phase 1 of Namma Metro connecting Nagasandra to Puttenahalli and Mysore Road to Bayapanahalli corridors have been completed
2. Phase 2A, connecting Mysore Road to Challegatta near Kengeri and Yelachenahalli to Anjanapura is set for completion by December 2018
3. Further extension of Phase 2 includes stretch between Silk Board and K R Puram which will be completed by 2020
4. Construction of an underpass and widening of a flyover along ORR at Hebbal Junction will reduce commute between the city’s major employment hubs
5. Land has been notified by the National Highway Authority for widening of NH 209 till Kanakapura
Even with these initiatives, the citizens of Bengaluru face daily challenges of traffic congestion and water shortage in many areas. Experts believe that the pace of infrastructure development must be accelerated and the government should take steps to protect the city from natural calamities. For Bengaluru to truly emerge as a global office destination, more steps must be taken to give the existing infrastructure a complete overhaul.