Bangalore ORR witnesses growth in office space market
May 09, 2014
Source : The Times of India


BANGALORE: The Outer Ring Road (ORR) was the first significant civic infrastructure project that connected Bangalore laterally. While connectivity was enhanced cutting travel time considerably, it led to rapid commercial and mixed use developments along this belt. The Hebbal-KR Puram-Sarjapur Road stretch of the ORR has emerged as one of the preferred commercial hotspots, leading to hectic residential property development in localities around.

Preferred corporate destination

Research by Knight Frank indicates the total operational office space along the Hebbal-K R Puram-Sarjapur Road belt is 30 million sqft. Upcoming office space, by end-2018, is expected to be around 12 million sqft. Along the Sarjapur-KR Puram ORR stretch, ongoing developments are largely concentrated in the commercial sphere with a few mid-segment residential developments. The KR Puram-Hebbal ORR stretch is witnessing a good number of mixed-use developments which have seen good traction.

Shrinivas Rao, CEO – Asia Pacific, Vestian Global Workplace Solutions, says, “The ORR currently accounts for close to 2.75 lakh employees, and annually, there is an addition of 30,000-40,000 to the existing workforce. It houses some of the largest IT/ITeS Special Economic Zones (SEZs) in the city. Although there are several SEZs present in this region, our statistics reveal a resurgence of non-SEZ buildings.”

IT/ITeS hub

The Central Silk Board Junction to KR Puram stretch is one of the most attractive destinations for the IT/ITeS sector. This micromarket currently accounts for nearly 40-45 percent of the city’s total IT/ITeS space absorption annually.

The key factors that have bolstered the growth of the ORR stretch between Hebbal-K R Puram-Sarjapur Road include proactive government initiatives such as the SEZ Act 2005, increase of the floor space index (FSI) to 3.25 permitted for commercial spaces in this region, availability of large land parcels and proximity to the Central Business District (CBD). This stretch serves as the main arterial link between the international airport and major IT hubs.

Shrinivas Rao says, “Additionally, proximity to residential hubs and access to the substantial talent pool present in these residential neighbourhoods such as Agara, Dollar’s Colony, Mahadevapura, Koramangla, HSR Layout and Sarjapur has strengthened the development of this corridor.”

According to Satish B N, Executive Director – South, Knight Frank India, “The commercial office space formats in this belt are mostly IT Parks and IT SEZs which house standalone built-to-suit buildings as well as multi-tenanted buildings. IT/ ITeS and finance sector companies form the major clientele looking for office space in the Sarjapur-ORR as well as Hebbal-ORR belts. Primary reasons are connectivity to residential locations and the airport, social infrastructure and availability of quality space.”

Connectivity fuels commercial development

The Hebbal-KR Puram-Sarjapur Road belt can be divided into two stretches – KR Puram-Hebbal stretch and the KR Puram-Sarjapur Road stretch. The Hebbal-KR Puram stretch is an emerging commercial belt and commercial developments are catalysed by improvement in connectivity and proximity to residential pockets such as Hebbal, Banaswadi, HRBR Layout and Kammanahalli. The stretch connecting Hebbal with KR Puram is being developed as signal-free corridor, work on which is nearing completion.

“This stretch is witnessing significant traction for commercial and residential developments as a result of development of the international airport in the north, as this stretch acts as a shorter route to the airport for traffic plying from the eastern micro-markets such as Sarjapur-ORR, Whitefield and Marathahalli,” Satish points out

Knight Frank’s research indicates that in terms of commercial developments, there is one operational SEZ along this stretch with about eight million sqft of space completed and operational, with sufficient land to add another 10 million sqft of space in the future. A tech park under construction will be the second largest commercial development coming up along this stretch.

“The KR Puram-Sarjapur Road stretch is an established IT/ITeS office space destination in Bangalore, and is one of the most preferred micromarkets for corporations establishing their offices in the city. The major factors influencing growth include enhanced connectivity with most of the high-traffic junctions now having flyovers or underpasses. Moreover, the Sarjapur-ORR stretch is located in proximity to established micro-markets such as Koramangala, HSR Layout, BTM Layout, JP Nagar and Indiranagar. This has been a major factor for the emergence of the corridor as a prominent commercial micro-market in Bangalore”, he says.

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