• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

BANGALORE, June 26

THE real estate market in Bangalore continues to be driven by IT-enabled services business. The demand for space is also perceptible in suburban and peripheral micro market areas, according to a market analysis by Cushsman & Wakefield, a consultancy organisation.

Rental and capital values have remained soft across most micro markets. The market is also relatively quiet, with no significant investment transactions in the last six months.

The values in the peripheral and suburban markets have predominantly remained stagnant for the last six months, with the prime office rental values not showing any change from Rs 50 per sq.ft. This incidentally is also the ruling price in the central business districts of Bangalore like M.G. Road. However, it is a steep drop from the peak rate that prevailed during the second quarter of 1996, when the city was in the grip of real estate boom, the analysis pointed out.

The expected activity of the international airport project, which recently received the Union Environment Ministry's clearance, has brightened the building and construction business. The industry is also looking for a recovery in the economy, with the real GDP during the current fiscal expected to touch 5.7 per cent. The growth rate had come down from the peak of 6.5 per cent during 1998 to four per cent in 2000. However, there has been a modest upswing from last year when it was estimated at 5.4 per cent.

During the last six months, the Bangalore landscape has undergone some changes with GE's John F.Welsh Technology Centre, the global multi-disciplinary research and development centre, commissioning its Phase II expansion of 2,10,000 sq. ft of space.

Another international company to give a fillip to the market was Snecma, a leading aerospace company of Europe, which has set up a design and research centre in Bangalore with an initial investment of Rs 20 crore.

The Karnataka Industrial Area Development Board (KIADB) has been asked to acquire 150-180 acres of land in Dodabellapur for setting the proposed apparel park. To be developed on the lines of the apparel park in Mumbai, it will house 100 to 150 small and medium units.

Send this article to Friends by E-Mail

Stories in this Section
Jamnagar chemical estate may form the core of Gujarat SEZ

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line