Micro Markets to Drive Bangalore Real Estate

By: George Gonigal

Sustaining the demand from IT and ITeS industry, Bangalore real estate at Bannerghatta Road and Outer Ring Road (ORR) has reportedly emerged up as the most active property market of Bangalore.

Similar are the trends at Whitefield. After facing a fall in the corporate interest, real estate market in this area is slowly catching up as the infrastructure and connectivity in and around the place is improving with availability of transportation means.

According to sources, almost every company planning to set up its centre in Bangalore is giving these areas a serious thought, and the supply side too is keeping in pace with that. Extensive construction activities are visible all across these areas and real estate developers here are all positive about the commercial viability of building Grade A office buildings.

Interestingly, the demand in these particular areas is pretty upbeat at the time when the Central Business District (CBD) location like MG Road is deemed as an overheated property market.

'Office rental in Bangalore has been at sky high, as far as CBD and other prime commercial locations are concerned and the demand level has been gradually going down. But that does not really mean that the market is slackening,' says a Bangalore based property agent.

He added that the in reality the demand is actually shifting towards the emerging commercial centres, where the property prices and rentals are comparatively lower.

Market experts also point out that the property values in CBD locations are bound to remain at prohibited levels since the vacancy rates are even lower than 3-per cent, and in this case the availability of office spaces is really not there.

On the other side, the supply side at the micro markets is conducive for the business conglomerates, scouting for new office spaces. As per an estimate, about 14 million sq. ft of office space will be added in the Bangalore commercial properties, by the end of year 2007.

As per industry reports, the first quarter of the year got about 2.5 million sq. ft of commercial space.

For more details on Bangalore Property Prices, log on to magicbricks.com

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