Meanwhile, 2014 promises to be different; demand for new offices is back and as Vineetha Athrey reports developers are expecting a major surge in rentals in coming quarters.
IT research in large data storage companies are hiring again and as the recovery takes hold Bangalore's commercial real estate industry is reaping the benefits. Experts say that over the last three months alone the markets have been flooded with domestic and foreign companies expressing interest in ready to move in spaces totaling 4-4.5 million sq ft, that's over half of last year's annual absorption.
Juggy Marwaha, MD, Jones Lang LaSalle says that in 2013, the overall absorption in the market in Bangalore was around 7.5-8 million sq ft. A sizeable interest levels in the first quarter that signifies that this year we would cross that number, having said that the only consideration that we should keep in mind is that the supply needs to keep in pace with the demand.
Demand for space is quite high. Prime Property learns that some of the bigger interested parties including Flipkart which is looking for a massive 1 million sq ft facility.
Accenture wants 200,000-300,000 sq ft space while Capgemini is looking for 300,000 sq ft and Amazon and KPMG both of whom are hunting for 400,000 sq ft each.
The IT capital Bangalore is also India's largest office market and IT hubs in the city like Whitefield, Marathalli and Electronic City and Outer Ring Road which house IT giants like Infosys, Wipro, IBM and Cisco are all getting saturated now, which makes it harder for the likes of Flipkart and Amazon to find good grade A office spaces in these areas. So, all those corporates who are looking for large swanky offices have no choice but to move to newer areas like Hebbal and Yelahanka in North Bangalore which are promising to be the new commercial hub.
Despite the surge in demand, the rentals in these areas have been going up only marginally over the last three months.
There is another reason for builders to feel enthused. What has developers like Prestige, RMC, Embassy and Bagmane really excited is the fact that now a significant number of companies are unusually looking to buy out their own office space instead of leasing it.
Irfan Razack, MD, Prestige Group says that if a company based in the US has got access to funds at cheap interest rate, say 2-3 percent interest rate and they get those funds here and they buy real estate and if you take the cap rate it will be much cheaper for them to buy and it is like sitting in a property with half the rent.
Whether companies choose to buy or lease, one way or the other Bangalore seems to be heading for a supply side bottle neck soon. Developers are happy that this could mean and uptick in prices. But the concern is that if demand continues to intensify at the current levels the second and third quarters of this calendar year could see a sharp supply side crunch.
Anda sedang membaca artikel tentang
‘Prime Property’ expect a surge in rentals for FY14
Dengan url
https://untukkesehatanda.blogspot.com/2014/04/aaeprime-propertyaaa-expect-surge-in.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
‘Prime Property’ expect a surge in rentals for FY14
namun jangan lupa untuk meletakkan link
‘Prime Property’ expect a surge in rentals for FY14
sebagai sumbernya
0 komentar:
Posting Komentar