A recent study by Meraqi Research suggests that lower occupancy, accessibility, connectivity and future development opportunity is driving the growth of commercial real estate in North West Bengaluru which includes areas of Malleshwaram, Rajajinagar, and Peenya. With large corporates across industry verticals including automotive, Pharmaceutical, aviation, electronics, IT/ITeS etc. setting up offices in this micro-location, North West Bengaluru is fast growing as an emerging business district. Strong physical infrastructure, proximity to the central business district, demand for A Grade office spaces and a good residential catchment of around 27,000 units have been some of the key contributors to this growth.
“We undertook this study to assess the commercial growth of the North-West Bengaluru region. In our endeavour to lead the way in research, we decided to bring in a perspective as to why this would be an ideal location for a lucrative investment. We have provided deep insights into the ecosystem of North-West Bangalore and highlighted the demand supply analysis, capital value, rental appreciation, growth prospects, liveability, and future employment opportunities. In sync with the data, the micro-market will soon emerge as a secondary commercial business district.” said Ezhilarasi (Geetha), Head Advisory & Valuation, Meraqi.
Commenting on the study, Nirupa Shankar, Joint Managing Director, Brigade Group said, “North-West Bengaluru is fast emerging as a secondary corporate hub. The region has been witnessing increased commercial development activity with demand expected to grow to 4.00 msf by 2025 from the current 2.00 msf, with 42% of the total space being in the Grade A developer category. It is expected that the capital value of commercial development will be around INR 10,500 to 11,000 per square foot. What gives this micro market additional value is that during the recent copious floods that Bengaluru witnessed, this micro market remained largely unaffected.”
Metro rail connectivity, express way, wide roads, good drainage, lack of water logging and connectivity to various business districts are prime reasons for growth of commercial real estate in the region. The proposed Bangaluru-Mumbai Industrial Corridor, which will pass through North-West Bengaluru will increase the growth of commercial real estate with an expected employment opportunity of around 23 million by 2041. The Namma Metro purple line extension expected to be completed by 2023 will further the prospects of the commercial real estate sector in the region.
North-West Bengaluru is emerging as a preferred micro market for commercial real estate with several integrated projects being developed. The area currently provides employment to around 5,50,000 workers with the potential to create an additional 45,000 jobs by 2025.