Building boom continues…

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projectdivyasree.jpg

To say there is a flurry of activity on the real estate front in Bangalore, would be understatement. Despite all the hue and cry about the new government not being industry friendly, there are still a lot of IT and non-IT companies landing into Bangalore. The frenzy in building activity that started last year is continuing unabated. Real estate values that had stabilized during early 2003, is on a steep rise now, with more BPO companies moving into the office space and more retail shops moving into the commercial space. There has been a fresh demand in the Central Business District areas with the boom in organised retailing and also with demand from non-IT sectors like banking and telecom.

According to international realty consultant Chesterton Meghraj’s 2004 Second Quarter Report, there has been excessive leasing activity in CBD area. Demand was mainly from start-up companies, entrants in the Indian market and those requiring liaison offices in the center of the city. The average office area requirement of these companies has been in the range of 4,000-5,000sq.ft. Demand drivers continue to comprise of companies from the IT / ITES sector. These companies prefer Grade-A space with higher ceiling heights, easy broadband connectivity and larger floor plates of 35,000 - 50,000 sq.ft.

 

Meanwhile in the suburban areas, growing companies are moving to built-to-suit and campus facilities, but fewer companies are opting for built-to-suit facility within the CBD. While the movement of IT companies has been towards the IT- corridor comprising of Whitefield, Electronic City, Ring Road, Bannerghatta Road and Airport Road. All the major developers are focusing on developing large tech-parks in the IT corridor. Suburbs continue to be investment destination for high net worth individuals and developers, due to active market. Prices in CBD area are now stabilised because plenty of options available in the suburbs.

 

One mega project that is coming in the IT corridor is Divyasree Technopolis. It is envisaged to be a huge 66 acre business park with a residential enclave of 35 acres attached to it. Offering a panoramic view of the airport runway, it houses some big names like i2 Technologies and LogicaCMG. The work for ‘One i2 Place’ dedicated campus for i2 of 154,000sq.ft space, is already in the finishing stages. Employing the renowned architect Hafeez Contractor, this granite structure with a wraparound landscape will surely be a landmark. Meanwhile sophisticated built-to-suit facilities like Bagmane Tech Park housing iflex and Motorola have come up in other peripheral areas.

 

As the chart below indicates, most of the IT companies are moving into leased properties in both CBD and Suburban areas.

 

Meanwhile there are some fresh set of investments happening in and around the city. This compilation given in ‘Kaigarika Varthe’ published by the Karnataka State Dept of Industries and Commerce, clearly shows eagerness of both IT and non-IT companies to invest in the state. Investment has already started on the proposed Devanahalli Airport area with hotels and business centres coming up there. Addressing the present scarcity for good accommodation, another hotel is coming up on Airport Road built by Sterling Mac Hotels.

 

Table 2: Approved projects for 2003-04

 
         

Company Name

Location

Industry Sector

Employ-
ment (Nos)

 

Comments

Accord Software   & Systems
Tel: 25350105/ 136/ 38

Electronic City, Blr

Software Development

500

Built for own use

Redwood Enterprises
Tel: 51148824

Poojanahalli Devanahalli Taluk, Bangalore Dist.

Hotel & Business Centre

480

Will be completed in one year. Negotiation on for leasing

Sterlings Mac Hotels
Tel: 25550356

Airport Road, Kodihalli, Bangalore.

Business Class Hotel

150

Will be completed in one year.

Prakruthi Nest Enterprises
Tel: 23367464

EPIP, Whitefield, Blr.

Software Technology Park

105

Construction yet to begin. Undecided on leasing

Danish Steel Cluster
Tel: 22277174

Jigani-Bommasandra, Bangalore

Stainless Steel & Allied Steel Parts

21

Construction going on

Sigma Buildcon
Tel: 28540990

Doddenakundi Village, Bangalore East.

Software Technology Park

120

Construction on in Varthur. Completion in 2005. Interested in leasing out

Global Green Company
Tel: 25536035.

Doddadunna Sandra Village, Hoskote Tq. Bangalore Dist.

Processing Preserved Vegetables

315

Already started production

Netra Technologies.
Tel: 23335552

EPIP Indl. Area,Whitefield, Bangalore.

Technology Park

500

Yet to beging construction. Interested in leasing out.

Gopalan Enterprises
Tel: 22277121

Kundanahalli K R Puram Hobli, Bangalore East

Fortune Village Technology Park

8000

Construction on. Will be ready in nine months. Interested in leasing

Syngene International Tel: 28523434

Bommasandra Indl Area, Anekal Tq, Bangalore Dist.

Contract research in the area of drug discovery

159

Subsidiary of Biocon

 

Issue BG43 Oct04