Its reputation as the Silicon Valley of India remains intact with a number of tech giants as well as emerging start-ups sealing deals in the past twelve months alone.
If one looks at the trends of Real Estate in the past five years, no city has inspired such commercial property demand as Bengaluru. So much so, the demand today is more than the supply. Its reputation as the Silicon Valley of India remains intact with a number of tech giants as well as emerging start-ups sealing deals in the past twelve months alone.
Bengaluru rose to fame with the IT revolution gripping the World during the mid-90s. Software companies set up their offices here, taking advantage of highly skilled economic work force, favorable weather and low rentals. This was also a time when along with MNCs, home grown Indian IT majors such as Infosys, TCS, Wipro and other companies started picking up fast. Later in 2000’s, the Start Up boom further propelled Bangalore’s commercial real estate demand as most startups chose to call it home.
The euphoria in Bengaluru’s office real estate market continues in H1 2016 with over 1 million of office space been leased out in Electronic City & Whitefield by IT & Finance majors such as HP, GE, JP Morgan & Infosys etc.
New Project Launches
Amidst higher demands, developers are coming up with new launch projects in Bengaluru office space based on innovative ideas. For instance, the Iconic project Emprasa will be soon launching its office units named as Emprasa Commercial based on the theme of start-up IT city. Earlier in 2015 end, Emprasa had successfully sold all its residential units located in the same project dedicated to start-ups. The project was globally launched across various international locations simultaneously and received tremendous response from both investor as well as end users.
Now, Emprasa is launching its office space starting at a price of Rs 16.75 lakh for a 500 Sq. Ft area. Emprasa Commercial has an assured return of 9% for three years and an assured rental up to 10% per annum for the same time period. Located in Hoskote, the project can ensure a total ROI of up to 28% per annum for a time period of 6 years. Due to attractive capital appreciation and rental yields, industry insiders believe that the project could be great catch for entrepreneurs as well as seasoned investors.
The positivity in the Bengaluru’s office real estate market is expected to continue in the near future as well. In the next half, new properties in Bengaluru are expected to enter into locations such as Whitefield & Indiranagar. These office spaces will also spur new launch projects in Bengaluru.
By the end of this year it is expected that Phase I of metro will be over and by 2020, Phase II will be completed. The Bengaluru metro once completed will offer a cost effective and congestion free transport medium to large volume of commuters (2 million by official estimates). This will add further momentum to the residential and commercial real estate industry of Bengaluru.
Credits Business Today