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Bangalore Residential's getting dearer, while Commercial's thrashed


Bangalore Residential's getting dearer, while Commercial's thrashed

Last updated: March 14 2007
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  • Bangalore Residential's getting dearer, while Commercial's thrashed

    DLF of North India is getting its acts altogether to enter the realty market of Bangalore. Demand for Residential space in Bangalore is peeping. DLF are planning to build 2 integrated townships in Bangalore at the cost of 400 Crore.There priority and mantra for Bangalore is:

    " To have residential, hotel and retail under one roof. "

    But the biggest disappointment for Bangalore is, the companies is turning there backs to this cities and are turning towards peripheral areas are where the action will be.

    About 80% of the demand for office space is driven by the software sector. According to a report by DTZ India, these companies now seem to prefer the peripheral areas of the cities to traditional business districts. The report expects the peripheral areas in major cities to see significant additional supply of office space this year.

    While Bangalore will see almost 11.5 million square feet of space addition, NCR and Chennai will add about 15 and 10 million square feet of office space respectively. The ever increasing demand for office space led to an over 100% jump in rentals in the CBDS of Mumbai and New Delhi in 2006. No wonder IT and ITES companies are now looking elsewhere.

    But it is not just high rentals that are driving demand on the peripheries. Reason Being - The peripheral areas are primarily driven by the demand from IT and IT enabled services industries operating on their proximity. And they succeed on the basis of their proximity to the labour pool. The labour pool is available in the suburban and peripheral areas. Good quality real estate is available. The real estate offers them scalability and it comes at an affordable cost.

    So Residential Space in Bangalore is still dearer while there is a shift in demand in Commercial Space. Is it So?
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