WFH Ending? Ola, Apple, Amazon Buy Record Office Space In Bengaluru As Offices Set To Reopen
During the third and fourth quarter of calendar year 2020, large global technology companies looking for expansion have led to record office space absorption in Bengaluru. The companies have entered into pre-commitment deals with property developers, thus taking advantage of Covid-19 pandemic price correction.
Developers, after sensing the gravity and urgency, ensured quick deal closures in Q4 2020.
Averaging at ?85-90 per sq ft per month, majority of the space abortion took place along eastern part of the city on the Outer Ring Road (ORR).
Ola with 4.5 lakh sq ft, Apple 3.5 lakh sq ft, Google 10 lakh sq ft, Amazon 13 lakh sq ft, Siemens 7.3 lakh sq ft and Continental Automotive 8.5 lakh sq ft. are some of the prominent names which have committed office spaces in Bengaluru.
Office Space Hotspot :-
“Bengaluru has always been a premier commercial market and a hotspot of capital investment in the country. The pre-committed activity remained strong with 2.47 million sqft of space being taken up in Q4 2020.” Said Shantanu Mazumder, Senior Branch Director, Bangalore, Knight Frank India.
“The city also has the advantage of relatively lower rentals than global markets, and a large talent pool should help in better than expected market revival as global economies move towards normalcy. Going forward, the city is expected to experience a rise in office rental values in 2021.” Bengaluru had the benefit of existing low vacancies that enabled absorption of much of the upcoming supply.
“Bengaluru has retained its premier position as the city registering highest office leasing volume in the country. The city recorded office leasing of 7.54 million sqft which accounted for 34 percent of the overall volumes across the eight markets in India” said Mazumder, Quoting the Knight Frank India’s its half-yearly report – India Real Estate: H2 2020.
Residential Market :-
Share of the above ?50 lakh ticket size category, home sales remained stable in H2 2020 to 65 percent YoY, said Knight Frank India, in its half-yearly report. At the start of 2020, the residential property prices which were increasing, which now have softened a bit. The pricing power in the city has been maintained, with the underlying characteristics of the market and improved sales performance. During 2020, the city recorded a marginal drop of one percent YoY in weighted average price.
Bengaluru’s residential market recorded home sales of 11,402 units in H2 2020 and 23,576 units in the calendar year 2020. The city reported new launches of 9,123 home units in H2 2020 and 19,929 home units in 2020. South Bengaluru saw the highest quantum of homes sold in H2 2020 to 3,860 units followed by East Bengaluru with 3,750 units.