Research &

Forecast Report
Bengaluru | Office
April 2015

Momentum
continues with
over 2.3 million
sq ft of office
absorption
It was another solid performance for the Bengaluru office
market in 1Q 2015, with office absorption totalling 2.31
million sq ft. Apart from this, about 1.74 million sq ft of
office space was pre-committed for build to suit by MNCs
like Amazon, Wells Fargo, Arista Networks and WSP
Consultants. IT / ITeS commanded the absorption with
about 69% (1.6 million sq ft), followed by BFSI sector 14%
and Retail 6%. SBD locations, such as Bannerghatta Road,
Koramangala, Malleswaram, Yamalur, J P Nagar and Outer
Ring Road - Marathahalli to KR Puram, saw maximum
traction with about 1.4 million sq ft office absorption, trailed
by PBD locations like Whitefield, Hosur Road and Outer
Ring Road - KR Puram to Hebbal, where more than 0.45
million sq ft was leased during the quarter.
Bengaluru recorded new supply of over 2.1 million sq ft
in 1Q 2015, 23% higher than that of the previous quarter.
Projects constituting this supply were Purva Gainz by
Purvankara Projects and Prestige Trinity Center by Prestige
Group both located at Hosur Road, Divyasree Technopolis
- Block by Divyasree at Yamalur, Global Village SEZ by
Tanglin Group at Mysore Road and Pritech - Block 14 by
Primal Group at ORR Marathahalli Sarjapur Road.
The total available stock for fit-outs was approximately 11
million sq ft. EPIP Zone / Whitefield accounted for 39%
of the total stock, followed by Outer Ring Road (24%) and
Electronic City (18%).

City Office Barometer

INDICATORS

1Q 2015

2Q 2015 F

Vacancy
Absorption
Construction
Rental Value
Capital Value

Rental Values
MICRO MARKETS

RENTAL
VALUE*

% CHANGE
QoQ
YoY

CBD

90 - 130

0%

16%

55 - 63

0%

7%

53 - 60

0%

0%

Bannerghatta Road

50 - 60

0%

0%

EPIP Zone/
Whitefield

28 - 36

0%

0%

Hosur Road

25 - 40

0%

8%

Electronic City

26 - 33

0%

7%

Outer Ring Road

(Marathalli Sarjapur)
Outer Ring Road
(North)**

*Indicative Grade A rents in INR per SF per month

**Northern part of ORR - KR Puram till Hebbal

Research & Forecast Report | April 2015 | Colliers International

4
3
2

1Q 2015

4Q 2014

3Q 2014

2Q 2014

1Q 2014

4Q 2013

3Q 2013

1Q 2013

2Q 2013

Average Rental And Capital Value Trend

Forecast

60

12,000
10,000

50

8,000

40

6,000

30

4,000

20

2,000

1Q 2017F

1Q 2016F

1Q 2015

1Q 2014

1Q 2013

1Q 2012

1Q 2011

10

Capital Values INR Per Sq.ft

70

1Q 2010

Overall, the Bengaluru office market is in the sweet

spot in terms of supply-and-demand fundamentals.
About 2 million sq ft of office space is expected to witness
completion next quarter, out of which about 0.2 million sq ft
is already committed. This steady increase in development
activity and greater domestic and foreign investor interest
in office market should result in additional occupancy and
rent growth. Select micro markets located along Outer Ring
Road (Marthalli - Sarjapur) and EPIP Zone / Whitefield
will continue to remain preferred micro markets among
occupiers due to their strategic locations.

1Q 2009

Colliers View

1Q 2008

In one of the major real estate transactions, Brigade Group

and GIC Singapore jointly bought Hindustan Unilever
Ltd. (HUL)s prime 26 acres of land located in Whitefield
to develop an IT Special Economic Zone. The property is
located in a prime location with connectivity to two IT hubs,
namely, Whitefield and Outer Ring Road.

Million Sq.ft

Rental values were remained stable across Bengaluru,

however capital values posted an average rise of 2% QoQ
across the city, except CBD, Hosur Road and Bannerghatta
Road where capital values were remained stable.

Quarter Wise Absorption

Rental Values INR Per Sq Ft Per Month

The quarter witnessed many new project launches during

the quarter, such as Embassy Tech Village, HVP Crest,
Mantri Agara Project, Vaishnavi Project and Primal Park
(RGA Tech Park) Blocks 3 and 4. All these projects are
expected to add more than 4 million sq ft of Grade A office
space between 201617 in the citys inventory.

Top 5 Transactions of the Quarter

CLIENT

BUILDING NAME

Amazon

Constellation Business
Park

Misys

AREA (SF)

LOCATION

LEASE / SALE

500,000

Outer Ring Road

Lease

World Technology Centre

150,000

Outer Ring Road

Lease

Nokia

Karle Town Centre

131,640

Outer Ring Road

Lease

Epsilon

Karle Town Centre

131,640

Outer Ring Road

Lease

GCC Services India Pvt Ltd

World Technology Centre

131,211

Outer Ring Road

Lease

LOCATION

POSSESSION

900,000

Outer Ring Road

2015

Bagmane Constellation Business

Bagmane Developers
Park - Virgo Block

800,000

Outer Ring Road

2015

RGA Tech Park

800,000

Sarjapur Road

2015

Key Under Construction Projects

BUILDING NAME

DEVELOPER

Maple Tree - 1 Phase

Adamas Builder

Primal Realty

AREA (SF)

Notes:
1. Office Market: Prime office properties in Bengaluru can be divided into three principal sub-market CBD/O CBD (MG Road, Millers Road, Vittal Mallya Road etc.) the SBD
(Banerghatta Road & Outer Ring Road (ORR)) and PBD (Hosur Road, EPIP Zone, Electronic City and Whitefield).
2. Rents/Capital Value: Market average of indicative asking price for Grade A office space.
3. Available Supply: Total Grade A office space being marketed for sale or lease in surveyed quarter.
4. City Barometer: Represents increase, decrease or stable scenario; as compared to previous quarter.
5. All the figures in the report is based on market information as on 25th March 2015.

Research & Forecast Report | April 2015 | Colliers International

Primary Authors:

502
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199
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Surabhi Arora
Associate Director | Research
+91 124 456 7500
surabhi.arora@colliers.com
Sachin Sharma
Manager | Research
Amit Oberoi I National Director
Valuation & Advisory Services & Research
For Oce Services:
Mumbai: George Mckay I South Asia Director
george.mckay@colliers.com
Delhi / NCR: Vikas Kalia | National Director
vikas.kalia@colliers.com

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billion in
annual revenue

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billion square feet

under management

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professionals

About Colliers International

colliers.com

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