New Delhi, May 27:Demand for prime office space in Bengaluru’s key location Whitefield is likely to rise on improved infrastructure and rent may go up 8-10 per cent in next two years, according to Colliers.
Real estate consultant has come out with a report ‘Bengaluru Metro Rail: Key office market impact’.
With Baiyappanahalli-Whitefield metro project likely to be fully operational by mid-year, rentals of office spaces in Whitefield are likely to go up by about 8-10 per cent over the next two years, the report said.
The growth in rentals will also hinge upon the overall demand from corporates and macro-economic factors among others, it added.
Whitefield, the second largest office market in Bengaluru, has office stock of about 40.4 million square feet, with vacancy levels hovering around 17.2 per cent at the end of the last calendar year.
The metro line towards Whitefield, which became partially operational in March 2023, will connect the technology hub of Whitefield to the rest of the city.
The report highlights that the average annual supply in Whitefield rose by 10 per cent during 2017-22, as the construction of metro project began, when compared to 2011-16 period.
Gross leasing of office space in Whitefield rose 18 per cent during the metro construction stage (2017-22) compared to planning stage (2011-16).
In CBD (central business district), over the last 12 years from the time of metro project construction, about 64 per cent of total leasing has happened during the Metro operation stage (2017-22).
Moreover, the office supply in the CBD rose more than four times during operation stage (2017-22), led by the expected improved connectivity of the metro.
Colliers expects demand of office space from co-working operators will also increase in Whitefield area. Co-working operators have currently limited presence in this area due to lack of proper connectivity.
While flexible workspace contributed to 13 per cent of the total office leasing in Bengaluru city during last year, it accounted for only 2 per cent of the total office leasing of Whitefield.
However, once metro gets fully operational in Whitefield in 2023, flex operators are likely to strengthen their presence in the market, the consultant said. (PTI)
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