JLL remarks the demand for office space in Bengaluru keeps growing

JLL remarks the demand for office space in Bengaluru keeps growing

JLL has stated very clearly that out of 96 million sq ft of grade A office space, the available area on lease is only 4-5 % 

BENGALURU: In this IT city, the demand for office space this year is expected to be around 10 million sq ft while the availability is as low as 8 million sq ft.

Out of the city’s total stock of 96 million sq ft of office space, the available area to be leased out is expected to be between 4-5 % this year.

Anuj Puri, Chairman of JLL said,” The leasing requirement of Bengaluru is difficult to meet with. In the first quarter of 2016, around 4 million sq ft was leased out. Major portion of this was committed earlier and will be occupied in the next two years”.

In 2015, more than 15 million sq ft of office spaces were sold out in different phases. This was due to the growing number of IT and ITes companies that wanted to have their footprints in Bengaluru. Apart from that, E-commerce companies and manufacturing firms were also looking for quite a number of office spaces in Bengaluru.

JLL in a recent report said that the same trend will continue in 2016. Though demands for office space will be from other sectors, the level of demand will be higher from companies doing technology businesses. JLL further added that a consistent demand for office spaces has actually improved the commercial real estate market in 2013. In fact, the Indian real estate industry was a part of the global club of markets to have had 100 million sq ft of space. The Bangalore based realtor Nitesh Estates has plans to invest Rs.1600 crores in a deal with Goldman Sachs to improve income-generating assets. It also has plans to invest on office spaces across the city more than on residential projects because of the increasing demand for the former.

Nitesh Shetty, Chairman of Nitesh Estates said,” We have clear plans to invest major portion of our funds on commercial assets, considering the increase in demand which very much likely, for commercial assets in future”.

As of now, the city has roughly about 40 million sq ft of office space with construction going on in various phases.

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