Bangalore's Outer Ring Road Emerges as Top Commercial Real Estate Hub
A recent report from Jones Lang LaSalle India (JLL) has identified Bangalore's Outer Ring Road (ORR) as the city's leading commercial real estate performer. The report specifically emphasized the burgeoning significance of the K.R. Puram – Marathahalli – Sarjapur Road stretch.
ORR Excels in Commercial Performance
JLL's analysis has revealed increased growth in the ORR, establishing the area as one of Bangalore's best-performing commercial zones. Bangalore has witnessed significant development in this area. Whitefield has also been recognized for its strong performance within the metropolitan area. The future of Bangalore's commercial real estate is predicted to focus heavily on the ORR and Whitefield. In contrast, other areas such as the Central Business District (CBD), Koramangala, and Bannerghatta Road have remained largely static during 2012.
Limited Supply Drives ORR's Success
Mr. Karun Varma, Jones Lang LaSalle India’s Bangalore and Kochi Regional Managing Director, explains that the limited availability of office space along the Outer Ring Road has contributed substantially to its success. This has resulted in low vacancy rates coupled with a strong office space absorption rate and healthy rental appreciation. "The Outer Ring Road has highly benefited from the limited supply of office space. As a result the area has low vacancy levels. Further the area boasts of a healthy office space absorption rate and appreciable rental rates." Varma Elaborated.
High Demand and Future Growth
The ORR is a major IT corridor, with the bulk of office space demand coming from this sector. It is noteworthy to mention that large corporations also contribute significantly to this demand. This combination has resulted in a demand that outstrips supply, driving rental appreciation. The easy access to residential areas and strong connectivity to various Special Economic Zones (SEZs) and IT parks further enhances the ORR's appeal to businesses.
Pre-Launch Commitments Due to Scarcity of Space
This current scarcity of available office space has led retailers and corporations to make pre-launch commitments, highlighting the considerable shortage of ready-to-move-in spaces. Existing tenants face increased pressure from new entrants seeking space in this highly desirable area. The Outer Ring Road's supportive environment for commercial activities continues to draw new businesses while existing companies expand, boosting the demand for office spaces and driving growth in Bangalore's commercial real estate market.