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Office Market Overview - Bangalore

Bangalore is the largest office market in India and Asia-Pacific region. Amongst the largest cities in India, with a population of ~12.95 million, second Largest semiconductor hub, and 4th largest IT / Tech cluster in the world. With strong academic and R&D base, leading startup ecosystem, over 27,00,000 IT professionals and the fastest growing market in Asia, Bangalore would become the largest Tech hub by 2020. Preferred by diverse industry sectors - IT, Aerospace, Automotive, BPO, Biotech, Electronics Healthcare, Telecom, Renewable Energy & many more.

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Office Market Overview - Bangalore

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  1. What’s going on in.. BANGALORE BANGALORE MID-YEAR 2019 OVERVIEW FUNDAMENTALS Forecast Bangalore is the largest office market in India and Asia- Pacific region. Amongst the largest cities in India, with a population of ~12.95 million, semiconductor hub, and 4th largest IT / Tech cluster in the world. With strong academic and R&D base, leading startup ecosystem, over 27,00,000 IT professionals and the fastest growing market in Asia, Bangalore would become the largest Tech hub by 2020. Preferred by diverse industry sectors - IT, Aerospace, Automotive, BPO, Biotech, Electronics Renewable Energy & many more. YTD net absorption ~7.64 Million Sq.ft ~28.5 Million Sq.ft (for next 24 months) second Largest Under construction Average asking rent (gross) INR 81.53 ($ 1.14) Concessions Flat Healthcare, Telecom, Market Size ~180 Million Sft Largest Office Deal 680,000 Sft Total Vacancy ~7.16 Million Sft TOTAL VACANCY AVERAGE ASKING RENTS 8.30% 100 80 60 6.20% 5.80% 40 5.10% 4.60% 20 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Class A Class B OUTLOOK Bangalore is witnessing the peak of leasing activity across India & H1 2019 had a high net leasing activity of ~7.64 million sq.ft. Outer Ring Road is the most sought after office space micro-market. It leads the leasing activity with companies like – HPE, Swiggy, HSBC, Deloitte, Paypal, Samsung, Cognizant, Google being the highest takers of space in this micro-market. The leasing market is dominated by demand from IT / ITeS, R&D, AI, IOT, Captive Centers, BPM & Co- working / Managed Office firms. Co-working / Managed office firms were the biggest disruptors in the segment with high competition amongst them leading to escalating rents. The high demand from corporates and the co-working / managed office firms would continue to keep low vacancy rates. Whitefield & North Bangalore also witnessed high leasing activity. The current & future supply in Outer Ring Road, Whitefield & North Bangalore will drive the leasing & preleasing of spaces. Demand from consolidation & Built-to-Suit requirements would give impetus to the future supply with pre-committed leases. Metro Connectivity would give a boost to metro locations (specially Whitefield) and supply and demand of these micro-markets. For more information, please contact: Ekta Bali ekta.bali@cityinfoservices.com +91 80 44110000

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