The announcement of the Bangalore-Mumbai and Bangalore-Chennai industrial corridors in this year’s Union budget has sparked renewed interest in the city’s business potential, according to a report by workplace services firm Vestian.
The report stated that Outer Ring Road (ORR) would remain a promising location for development of office spaces in the short term.
The report rated Whitefield, ORR (between Hebbal to Central Silk Board junction), Sarjapur Road and Bangalore North as the most vibrant micro-markets. The growth of other sectors besides IT/ITeS like biotechnology, automobiles, aviation and textiles will also strengthen the city’s economy, the report predicted.
The report identified northern and north-western localities, Kanakapura Road and Old Madras Road as the most promising areas for real estate development in the city. Office space absorption in the city will reach nearly 9 million sqft by the end of this year while SEZ parks would see mixed development following revision of regulations, it said.
The retail and hospitality sector will see annual appreciation of 5 to 20 per cent in rent rates for shopping malls and 4 to 13 per cent in high street locations, the report said.