The commercial sector in Bangalore is undergoing rigorous changes over past few years. Being the IT hub, the demand for commercial space has been increasing in the city. The availability of talent pool, stable political environment, the recent infrastructure initiatives like the metro etc has added to the increase in demand for office spaces.
With the improved global economic scenario and a more favorable dollar to rupee exchange rate, the IT firms in the city are expected to be in an expansion mode which will inevitably lead to more demand for office or commercial space. India is likely to witness the second highest demand for office space in 2014 among the top 30 cities in the Asia-Pacific region, according to a report by property consultancy Cushman & Wakefield, which says Bangalore is expected to be the biggest market in the country due to the expansion of IT, ITeS and multinational companies. Expansion by companies will give a boost to office space absorption in Bangalore, which will see a growth of 16 per cent in 2014 compared with the previous year.
Also, with the Securities and Exchange Board of India (Sebi) approving the setting up of real estate investment trusts (REITs), Bangalore is expected to see more action in this sector. According to estimates, more than 150 million square feet of office space in major Indian cities could be eligible for listing as REITs. Apart from the IT sector, there has been an increasing demand for commercials space from the banking, finance, insurance and media sectors. Office space is available in all formats including fully furnished spaces which are fully loaded floors with all modern requirements to run a commercial setup.
Also, the concept of office space is evolving at the moment. Apart from the traditional four walls as a office, companies are trying to make the work space more creative and aesthetic to suit the expectations of the Gen Y employees. It’s not just the office that matters but also the ambiance and the atmosphere around, which would enhance the productivity of the employees. With more rental gains pouring in, commercial property has become an ideal sector to invest compared to a residential property.