Bangalore: HSR
Layout was developed by BDA (Bangalore Development Authority) in 1984 with its
progress picking up at a fast rate owing to the IT parks and the Central
Business District being in the vicinity and Outer Ring Road (ORR) running
throughout its edges. The HSR layout is spread across 1, 500 acres of land and is
split into sectors from I to VII. Apart from this, HSR layout is located in the
areas adjoining BTM Layout and Koramangala along with large scale commercial
development burgeoning along the ORR stretch between Marathahalli and Central
Silk Board junctions.
The overview of the commercial Market
This
micro-market is primarily a residential area developed by BDA and presently
supports very limited commercial activities and developments. HSR layout has
its own BDA complex with standalone commercial stores and retail development
being observed with entry of big players of the market in entertainment, food,
consumer durables being noted. But the ORR which runs throughout the edges of
HSR layout houses several IT and ITeS companies with major IT players’ offices
located around the region.
The
ORR stretch between Marathahalli and Central Silk board has large IT parks and
Special Economic Zones (SEZs) which actually supports the micro-market of HSR
layout.
This IT corridor has been the development of the last 10 to 15 years and
accounts for about 25 percent of Bangalore’s IT space with several major IT
companies operating in this area.
A Micro-market with the best performance.
The
micro market has over 18.79 million sq. ft. of IT space currently operational with 3 SEZs, and
10 IT parks with approximately another 16 million sq. ft. under construction
which will have 6 IT parks and 2 SEZs. These upcoming IT parks and SEZs are
expected to be completed and operational within the next 5 years. SEZs consist
of 50 per cent of the currently operational commercial spaces and this area
accounts for almost 75 per cent of the total Special Economic Zone space of the
city.
Experts opine that that this micro
market consisting of large multi-tenanted IT parks with about 95 per cent of
the A- Grade office space is occupied by IT and ITeS organizations alone. They
also opine that this is the best performing micro-market in the city of
Bangalore for commercial office space.
Most High absorption of commercial and office spaces.
Data
reveals that absorption of commercial spaces by this micro-market has been in
the range of 2.25 million sq. ft. in the last seven years with a record
absorption of 3.70 million sq. ft. of office space in the preceding nine months
which is almost 34 per cent increase in absorption compared to last year. This
is a clear indicator that this micro-market is the favourite for the IT and
ITeS segment which reaffirms the prospects of commercial real estate market in
this region.
The experts attribute this rapid growth
in demand due to fairly good absorption of new influx of supply and higher
released commitments. This has certainly led the vacancy levels to be low with
increasing rentals.
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Bangalore: HSR Layout was developed by BDA (Bangalore Development Authority) in 1984 with its progress picking up at a fast rate owing to ...
