BANGALORE: Led by the IT industry's need for large office spaces, Bangalore is on the verge of crossing the milestone of having over 100 million sqft of leased A-grade office space. It will be the first Indian city to hit that figure, and is expected to do so by March this year.
At the end of 2013, Bangalore had a cumulative leased office portfolio of 99.94 million sqft. These figures don't include the captive office spaces of IT companies such as Infosys and Wipro.
In comparison, Mumbai has a cumulative leased office space portfolio of 93.05 million sqft and Delhi-NCR 74.19 million sqft. Chennai, Pune and Hyderabad have 52.11 million sqft, 46.97 million sqft, and 38.62 million sqft respectively.
The total A-grade commercial office space stock across the top seven metros in India stood at 424.8 million sqft and Bangalore has a 24% share of that.
The numbers corroborate a recent study by Global Initiative for Restructuring Environment and Management (Girem) and international property consultants DTZ, which ranked Bangalore as the hottest business destination in India, ahead of Mumbai and Delhi.
The report, which scored the cities across economic, environmental and cultural parameters, ranked Bangalore as the best location for businesses to invest because of good connectivity, high quality of talent, good availability of office space suiting different income groups, high-quality education system and a welcoming, multifarious city culture.
"Bangalore has one of the most resilient real estate markets, offering commercial space at much more competitive rates compared to Delhi, Mumbai or Gurgaon. This coupled with the famed entrepreneurial spirit of the city and a multi-faceted culture makes Bangalore a highly attractive destination for new businesses to set shop," said Sankey Prasad, chairman, Girem.
Data shared by DTZ showed that Bangalore accounted for the largest take-up of office space last year, absorbing 40% of the overall supply of 27.3 million sqft. While multinational companies accounted for 84.9% of the absorption, the IT sector share in the take-up was 54.3%.