Whitefield Makes a Come Back in Bangalore Property Markets

by : George Gonigal

After facing an apparent fall in the corporate interest, real estate market in the suburban area of Whitefield is slowly catching up with its infrastructure and connectivity improving in and around the Bangalore, the cyber hub of India.

According to sources, almost every company planning to set up its operation centre in Bangalore is taking Whitefield properties as a potential destination. The supply side too is keeping in pace with the demand side. Construction activities are going on all across these areas and real estate developers here are all positive about the commercial feasibility of building Grade A office buildings.

The demand in Whitefield is especially buoyant 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,' said a property broker in Bangalore.

He further informed that actually the demand is drifting towards the emerging commercial centres, where the property values and rentals are comparatively lower. 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.

The supply side, on the other hand, at the micro markets is conducive for the business organizations, scouting for new office spaces. As per industry estimates, about 14 million sq. ft of office space was added in the Bangalore commercial properties, in year 2007.