Bangalore: HSR Layout was developed by BDA (Bangalore Development Authority) in 1984 with its progress picking up at a fast rate owing to the IT parks and the Central Business District being in the vicinity and Outer Ring Road (ORR) running throughout its edges. The Hsr Layout is spread across 1, 500 acres of land and is split into sectors from I to VII. Apart from this, HSR layout is located in the areas adjoining BTM Layout and Koramangala along with large scale commercial development burgeoning along the ORR stretch between Marathahalli and Central Silk Board junctions.
The overview of the commercial Market
This micro-market is primarily a residential area developed by BDA and presently supports very limited commercial activities and developments. HSR layout has its own BDA complex with standalone commercial stores and retail development being observed with entry of big players of the market in entertainment, food, consumer durables being noted. But the ORR which runs throughout the edges of HSR layout houses several IT and ITeS companies with major IT players’ offices located around the region.
The ORR stretch between Marathahalli and Central Silk board has large IT parks and Special Economic Zones (SEZs) which actually supports the micro-market of HSR layout.This IT corridor has been the development of the last 10 to 15 years and accounts for about 25 percent of Bangalore’s IT space with several major IT companies operating in this area.
A Micro-market with the best performance.
The micro market has over 18.79 million sq. ft. of IT space currently operational with 3 SEZs, and 10 IT parks with approximately another 16 million sq. ft. under construction which will have 6 IT parks and 2 SEZs. These upcoming IT parks and SEZs are expected to be completed and operational within the next 5 years. SEZs consist of 50 per cent of the currently operational commercial spaces and this area accounts for almost 75 per cent of the total Special Economic Zone space of the city.
Experts opine that that this micro market consisting of large multi-tenanted IT parks with about 95 per cent of the A- Grade Office Space is occupied by IT and ITeS organizations alone. They also opine that this is the best performing micro-market in the city of Bangalore for commercial office space.
Most High absorption of commercial and office spaces.
Data reveals that absorption of commercial spaces by this micro-market has been in the range of 2.25 million sq. ft. in the last seven years with a record absorption of 3.70 million sq. ft. of office space in the preceding nine months which is almost 34 per cent increase in absorption compared to last year. This is a clear indicator that this micro-market is the favourite for the IT and ITeS segment which reaffirms the prospects of commercial real estate market in this region.
The experts attribute this rapid growth in demand due to fairly good absorption of new influx of supply and higher released commitments. This has certainly led the vacancy levels to be low with increasing rentals.
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