Bangalore office space set for 50% expansion over 4 years
Bangalore, known as the silicon valley of India is set to see its office space take up increase by 50% over the next four years.
Office real estate is expected to touch 100msq ft by 2016 – a doubling of available stock from its 2009 level in just seven years, representing a 50% expansion to the current level of 70m sq ft, according to a report by Jones Lang LaSalle,
Its metamorphosis from the 'Garden City' to India's 'Silicon Valley' has triggered huge infrastructure growth which has seen its residential and commercial property markets transformed.
Its infrastructure growth has supported office real estate expansion with the, “availability of high quality, office spaces at sub–dollar rental levels and access to a large, skilled workforce continuing to drive Bangalore’s growth.” Karun Varma, MD, Bangalore & Kochi, Jones Lang LaSalle India.
According to the report, every square foot of office space is said to create three square feet of residential space with an estimated 90m sq ft of residential space set to be created in Bangalore over the next five years.
Mr Varma said: “The addition of approximately 30 million square feet to the existing stock translates into an addition of around 300,000 jobs over the next 4 -5 years.
“The growth in employment will lead to a rise in disposable incomes and therefore consumption. Increase in consumption will further drive the growth of the retail and residential property sectors.”
Bangalore is not the only city in India to see encouraging growth of its IT sector and office space demands. SOS recently reported that its neighbouring city, Hyderabad has seen a similar pattern of growth with the office space for its IT sector set to touch 20m sq ft this year, representing 12% of the country’s office space in the IT sector.