Prime Locations for the Bangalore Office CRE Market
Bangalore is one of the top destinations for office space in commercial real estate, so which areas should you focus on?
While the pandemic that started in 2020 is still turning up new cases till date in 2022, people have also started to find out ways to operate while accepting the situation. While flexi-work and hybrid work are picking up pace, the concept of offices hasn’t gone out of vogue, and never will. Development and learning that happens for certain roles in an office environment cannot be replicated in a remote work setting. Which is the reason why prime locations across India are still having a good demand for Grade A office spaces and the quarter ending of 2021 has the numbers to show for it. Among the most sought-after locations in India, Bangalore has been at the forefront with 30% share in both leasing and supply (Colliers, India Office Market Snapshot 2021), closely followed by Delhi NCR and Hyderabad.
If you have stayed and worked in the garden city for any substantial amount of time, some of those prime locations for office spaces might not be new to you. For those who haven’t ever been to Bengaluru, read on to know why certain locations are favored by tenants, and in turn by developers to have office properties readied in terms of supply.
While knowing about the areas, let us also know how sections of Bengaluru are referred to in commercial or business terms. Starting off, CBD (Central Business District)refers to the area around 20 kilometers in diameter with the Vidhan Soudha at the center. This covers the regions of MG Road, Residency Road, Cunningham Road, Lavelle Road, Richmond Road, and Infantry Road. This is the center of the city and one of the oldest areas, with a high concentration of businesses. Apart from the much-touted Bengaluru traffic, one also gets access to a variety of stores, eateries, and malls. Tenants in this area comprise those with services as their core business. Outer Ring Road connects the center of the city with Bengaluru East and is generously sprinkled with SEZs and IT parks. This road is by far the fastest route to get to office and rarely suffers from traffic bottlenecks, except on days preceding major holidays and weekends. Officegoers mostly choose between buses and cabs to traverse this route. Bengaluru Eastconsists of Marathahalli, Kundalahalli, Haralur Road, Brookefield, Old Airport Road and areas close to them. Many software companies and MNCs call this area home. While there is great connectivity, there are also concerns of traffic jams in this route. But thankfully, a new metro station coming up near Kundalahalli will help commuters a lot. North Bangalore includes regions of Doddaballapur Road, Dasarahalli Hebbal, Dollars Colony, HBR Layout, Ganganagar and areas nearby. These areas are mostly known for their comprehensive technology parks. Apart from being one of the preferred locations for manufacturing companies, these areas are also seeing an uptick in residential real estate for the past few years. Finally, South Bangalore covers areas of HSR, Madiwala, Bannerghatta, Anekal, Attibele, and surrounding regions. These areas have already been prime residential locations and a lot of native Kannadigas can also be found here. Schools and colleges are also quite numerous in these areas. There are a few business parks in and around the areas, but mostly commercial tenants are found to lease standalone buildings here. The region contains a healthy mix of old and new properties and is one of the oldest areas of Bengaluru.
Let us have a look at how the areas fare in terms of office space demand and supply -
From the image above, it is clear that some areas are certainly preferred when it comes to investing in office CRE in Bengaluru. However, as indicated before, Bangalore in general is still one of the top locations in the country to invest in CRE. As an investor, you can always look into the history of the asset and the micromarket it is situated in to give you more insights before moving ahead with any investment decision.
With Strata, you get all the required data and history of the asset, while the due diligence done leaves no stone unturned. If you are keen to get started with CRE in your investment portfolio, please visit us at www.strataprop.com.