Bangalore Office Market Snapshot 2013

In 2013 the average space size of the deals was approximately 37,000 SF, which was half of that in 2012 as most of the demand was generated by small and mid-size enterprises looking for expansion. IT/ITeS remained the primary demand driver accounting for approximately 80 percent of the total office space absorption. The Outer Ring Road and Whitefield micro-markets remained the preferred office destination, together accounting for 55 percent of the total absorption.

Supply & Vacancy

New office supply was close to 5.5 MN SF, which is 28 percent lesser than the new supply in 2012. Given that most of the demand was for Outer Ring Road and Whitefield, it comes as no surprise that 75 percent of the new supply was also located in these two micro-markets. The remainder of the new supply was evenly split between Hosur Road and Electronic City micro markets. Due to the limited addition of new buildings, the overall market vacancy has reduced to 14 percent which is marginally lower than that of 2012 (15 percent).

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