The demand for furnished office spaces in Bangalore
The demand for commercial space is on the rise and this is particularly with regard to furnished office space. New businesses are looking for ways that they can save time and money and get up and running as soon as they are established. Fully furnished spaces and plug-n-play offices fit the bill, as they are self-contained units that help not only set up but run a business smoothly.
A recent report published by property consultancy Cushman and Wakefield has highlighted important trends regarding the demand for office space in Asia-Pacific. Tokyo, the capital of Japan, ranks first, as its office demand is expected to reach 7.6 million square meters. foot in 2014. India’s Silicon Valley, Bangalore, ranks second according to the report. It is the second highest among 30 other cities in Asia Pacific. It is projected to see the largest office takeover in India at 6.3 million square feet. foot Bangalore has surpassed even Delhi, which has come to rank sixth among other cities.
The main reason for an increase in demand for office space in Bangalore is due to the increasing proliferation of knowledge-based industries such as Multinational Corporations (MNC), IT companies and ITeS. Not only are new businesses being created, but existing ones are also expanding at a fast pace. If we compare the statistics with the previous year, the absorption of office space will see a growth of 16 percent. The trend will prevail throughout 2014 and will continue in 2015.
Growth in the commercial real estate market is concentrated in the central business district and the south and southeast of Bangalore. Most office space demands included consolidations and relocations. The demand is higher in the suburban locations of Bangalore, namely Whitefield. It is more so in Whitefield as it is the bridge between idyllic Bangalore and the IT corridor. Suburbs and micro-markets offer better quality, efficient and cheaper office solutions and therefore companies are prepared to move there. This does not exclude north of Bangalore from the picture. Its proximity to the international airport and two prominent technology parks have made it a favorable option for commercial and residential projects. Infrastructure projects like the outer ring road are another reason big corporations are showing increasing interest in the northern region. North Bangalore makes up around 1.70 million square meters. foot of the commercial stock of the city.
Commercial office space projects in Bangalore include sales and leasing activities. Most corporate businesses have long-term occupancy plans. Given the demand for office space, developers are paying more attention to the development of autonomous centers. These hubs have corporate offices, shopping centers and residential development integrated into the same project.
Therefore, the oversupply of commercial properties in Bangalore ensures that there is an office space to fit everyone’s budget and requirements. Commercial properties start from Rs 25 per square meter. foot for regular properties and Rs. 35 square feet. foot for furnished spaces. There are properties ranging from 2,000 m2. ft to 50,000 m2 ft in size.
