ORR, Bangalore North areas rise as Secondary Business District
Even from mid-2010, the commercial property segment in Bangalore has been witnessing a steady rise with increased demand for office space thanks to the overall improvement in economy and expansion plans announced by corporates.
According to a recent report released by Jones Lang LaSalle Meghraj, Bangalore's Central Business District (CBD) and Secondary Business District (SBD) witnessed a net absorption of over 6 lakh sft in the second quarter of 2010. However, with the prime CBD areas in and around MG Road having got saturated, it has not been possible for corporates to have their share of the pie in these areas. Therefore, the new preferred office space destination became the Secondary Business District. The SBD which included areas like Old Airport Road, Indiranagar, Koramangala, Jayanagar and Sadashivnagar has now got extended to the Outer Ring Road with prime areas in North Bangalore also coming under the Secondary Business District.
“Areas in Bangalore North like Sadashivnagar, Malleswaram, RMV Extension and Sanjaynagar Main Road till Hebbal have seen a lot of commercial activity in the last 1 year. The Manyata Tech Park set the trend and now many more tech parks, commercial complexes, hospitals and retail hubs are underway in these areas,” apprises T S Sateesh, Managing Director, Hoysala Projects.
“Good physical and social infrastructure like six lane road and the proximity to the International Airport Road are the reason for this heightened level of commercial activity in these areas,” explains Sateesh. Even retail activity has picked up tremendously in these areas with the setting up of Mantri Mall, Esteem Mall & Metro Cash & Carry. Commercial complexes and office spaces command a good rental in these areas with rentals ranging from anywhere between Rs. 40- 60 per sft.
“A lot of builders are also planning high end residential apartments in these areas which are commanding a huge premium due to the location. Some of the prominent builders who have residential projects in this area are Raheja, Brigade, Salarpuria Sattva and Hoysala Projects, to name a few. The price of residential apartments range from Rs. 4000- 6000 per sft depending upon the builder and the amenities on offer,” apprises Irshad Ahmed, President, Bangalore Realtors Association of India (BRAI) and Managing Partner, Irshad Property Matters.
The rise of the ORR stretch
Another stretch which has risen to become prime SBD is the Outer Ring Road stretch from Silk Board to Hebbal. Home to many IT majors like IBM, Dell, Accenture, etc, this stretch is one of the most sought after commercial spaces today. In a recent study conducted by Vestian Global Workplace Services, the Outer Ring Road stretch from Silk Board junction to Hebbal accounts for almost 25% of Bangalore’s total IT space. The study by Vestian says there is 18.6 million sft of operational Grade A office space available in the ORR stretch with 3.3 million sft office space under construction.
This Secondary Business District scores over other IT growth corridors of Bangalore due to better connectivity to the Central Business District and availability of large land parcels. "The ongoing infrastructure works aims to transform the ORR into a signal free corridor and the upcoming hotel and retail projects will further enhance connectivity and support infrastructure in this micro market," says the study by Vestian.
Rentals for commercial spaces in the ORR currently are in the range of Rs 45-50 per sft. With the stretch abuzz with commercial activity, residential development has also not been far behind. A few prominent builders who have projects in this stretch are Sobha Developers, Akme, Ferns and Adarsh Developers. “The stretch has housing projects for all categories from villas, row houses to mid-size and premium apartment projects. Prices of properties start at Rs. 60 lakh and go upto Rs 5 crore for the high end projects. Residential rentals are in the range of Rs. 15,000 to Rs. 50,000 depending upon the segment,” apprises Irshad.