BANGALORE: Bangalore west is a market that is coming of age. One of the early residential areas with industrial growth, this region has now opened out to witness stand-alone commercial and integrated developments. Connectivity has led to a significant boost in the development of this region – the Tumkur Road highway, improvements to Mysore Road and Magadi Road with connectivity enhanced through the Outer Ring Road (ORR). With the Metro line soon to be inaugurated between Peenya and Sampige Road, commercial property development will receive another boost.
Ram Chandnani, Deputy Managing Director – South India, CBRE South Asia, elaborates, “Localities in Bangalore west lie within an 8-10 km radius from the Central Business District (CBD), along with the required social infrastructure growth. Over the years, it has primarily developed into a residential hub with Rajajinagar, Basaveshwaranagar, Malleswaram, Yeshwanthpur, Mathikere, Mahalakshmi Layout, Nandhini Layout and Chandra Layout being some of the prominent localities. Although currently not seeing much commercial development with the exception of a prominent mixed development project, this is expected to change with Metro connectivity and quality residential developments coming in.”
“Commercial development in Bangalore west is still at a very nascent stage with handful of Grade A developments. Office space in this micromarket is typically characterised by Grade C standalone buildings having average size of 10,000 sqft,” says Naveen Nandwani, Director – South India, Cushman & Wakefield.
Factors pushing commercial growth
According to Ram, factors pushing growth in this micromarket are future Metro connectivity, rise in Grade A residential developments, enhancement in social infrastructure, proximity to the airport, improvement of infrastructure through the NICE corridor, State Highway development projects connecting to Mysore, and industrial development in Kumbalgodu, Kengeri and Bidadi.
He adds, “Owing to these, Rajajinagar, Magadi Road, Jalahalli and Mysore Road have emerged as commercial hotbeds. Some emerging trends in the region are mixed use developments promoting the ‘walk-to-work’ concept, small to mid-sized stand-alone commercial buildings which are more suitable for corporates looking for smaller office spaces, and tech parks due to proximity to Mysore, residential catchments of west Bangalore and the NICE corridor.”
Naveen explains, “Considering the commercial space market, the west still remains largely unexplored. Office space developments in this quadrant are still to witness growth on the lines of commercial development in Electronics City, Whitefield and now along the ORR belt (Sarjapur Road to Hebbal). Further, areas such as Mysore Road with sizeable land parcels are yet to see significant growth in terms of residential catchments and support infrastructure. However, Mysore Road was the first to witness quality supply in 2001 followed by Malleswaram in 2010.”
With connectivity augmented through various civic infrastructure projects such as the upgraded NH-4 and the upcoming Metro line, this region is opening up to further residential, industrial, commercial and retail growth. “The rise in the popularity of this micro-market can be attributed to three key reasons – the availability of land parcels that provides room for future development of healthcare, entertainment and other aspects of social infrastructure development; large and steadily growing industrial hubs as economic activity is directly correlated to residential growth; and improved connectivity through the NICE Ring Road that provides easy access to Hosur,” Ram states.
Bangalore west — scenario
Research by Cushman & Wakefield indicates that Grade A office space in the west comprises SEZs and other commercial spaces. SEZ space accounts for close to 48 percent of the total stock in the west. Operational Grade A commercial office stock measures around 3.3 million sqft with no under-development stock currently.
Other office space buildings primarily belong to the Grade C category. The organised office space development in the region stands at three percent of the total stock.
Naveen explains, “Companies already present in this micro-market and looking to expand in quality commercial spaces are moving towards locations such as the ORR. This is due to competitive rentals, proximity to residential catchments, and good connectivity to central and suburban locations of the ORR belt.”
Areas with potential
Naveen says, “In the long run, Mysore Road can be anticipated to emerge as a commercial destination due to availability of land, upcoming Metro and connectivity through NICE Ring Road.”
“Areas with potential as future commercial hotspots in the west are Mysore Road, Magadi Road, Rajajinagar, Tumkur Road and Jalahalli,” Ram adds.