The office space market in Bangalore witnessed a moderate leasing activity during September as against August this year. IT / ITeS sector continued to account for majority of the leasing activity, followed by the BFSI sector.
“The combination of stable demand and restricted supply kept the city’s overall vacancy rate low during the month. This trend inched up the rents across the Central Business District (CBD) and Secondary Business District (SBD) submarkets,” a report published by Jones Lang LaSalle (JLL), a financial and professional services firm specialied in the real estate sector said.
Some of the key firms that leased space in September were: Altran India, Xentrix, IMS Healthcare, PMC Sierra, Time Magazine, Quest Software, Honeywell, SS&C Technologies, Mars Telicom, Indecomm, Net Crackers, Monsanto, Q Logic, Citrix and FlowServe.
The capital values increased marginally across all submarkets, JLL said in its monthly newsletter Pulse.
The company also said that the annual GDP numbers resulted in a negative sentiment throughout the real estate sector. The demand for commercial real estate moderated as office occupiers remained cautious of their expansion plans. JLL also said, services sector, which includes BFSI, IT / ITeS, consulting, trade and communication industries were the highest contributors to the office real estate demand.
In 2011, the service sector accounted for about 70 per cent of the demand for commercial office space in major Indian cities. Within the service sector, the ITTeS and BFSI industries were the key contributors of office space demand, which was about 35 per cent and 16 per cent, respectively.
In September Bangalore’s retail market saw steady consumer demand however, this demand did not support the leasing activity in the city. No major transactions were concluded in the city during the month and rents and capital values remained stable across all sub-markets, said JLL.
Bangalore’s residential market witnessed steady consumer demand and observed good number of launches in September.