In 2016, Bengaluru experienced a 28% shortfall in office space. According to top real estate consultants, the demand remains exceptionally high in the country's tech capital. Throughout 2016, developers struggled to meet the supply of Grade A office spaces.
Statement from CBRE:
Ram T Chandnani, Managing Director, India, Advisory and Transaction Services, CBRE South Asia, stated, "The city will witness a supply of approximately 9 million square feet by the end of December 2016, as opposed to the 12.5 million square feet consumed in 2015."
Mid-Year Consumption:
As of mid-June 2016, Bengaluru had consumed 6 million square feet of Grade A office space, according to Ram T Chandnani. The city continues to see high demand from the IT/ITeS sectors, healthcare, banking, and e-commerce start-ups.
E-commerce Sector Contribution:
Last year, the e-commerce sector accounted for 6% of the total consumption. Chandnani predicts that the share of e-commerce companies will drop to 5% of the total office space consumption.
Market Outlook:
Chandnani further commenting to the Financial Express at the CoreNet Global's annual conference on Wednesday said, "Bengaluru has emerged as the largest office market in India, attracting high demand from information technology and allied industries occupiers. The presence of large floor plates, competitive rentals, and government support has made Bengaluru an attractive destination. However, the lack of ready-to-move-in spaces is set to reduce net consumption this year."