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The Outer Ring Road (specifically the K. R. Puram – Marathahalli – Sarjapur Road stretch) and Whitefield have been the best performing areas in Bangalore’s commercial real estate, said Jones Lang LaSalle India in its study.
Bannerghatta Road, Koramangala and the Central Business District (CBD) remained largely neutral throughout the year.
Karun Varma, Managing Director, Bangalore and Kochi, Jones Lang LaSalle India, said: “The Outer Ring Road, being a predominant IT growth corridor, benefited from the controlled nature of office space supply, which ensured low vacancy levels, a healthy absorption rate and rental appreciation.”
“Also, corporates continued to prefer ORR for its accessibility to employee residential catchments and its connectivity to the various SEZs and IT parks along this stretch,” he added.
Moreover, pre-commitments are prevalent on ORR owing to the lack of ready-to-move-in supply. ORR continued to be the location of choice for new entrants as well as existing occupiers looking at expansion.
“The low leasing activity in these areas was due to lack of fresh supply and the fact that as established locations, they have limited scope for infrastructure enhancement,” said Varma.
“Also, companies relocating to alternate areas showed a market preference for destinations with economic rentals,” he explained.
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