Real estate news on IT Continues To Drive Demand For Commercial Space

Commercial Properties, IT/ITeS, Bengaluru, Kochi
Posted on Feb 21, 2012
The IT sector is set to expand its wings further, going by the demand for office spaces in the city and in the outskirts. Several tech parks on the Outer Ring Road (ORR) have large companies operating out of them, and residential clusters in the vicinity along with the necessary social infrastructure.

This has created micro markets in localities such as Whitefield, Electronic City, Bannerghatta Road and Kanakapura Road.

According to Karun Varma, Managing Director (Bangalore and Kochi), Jones Lang LaSalle India, the IT sector has a special significance for India, because
Indias competence in this sector has made it a net exporter of IT services.

“It was the fastest-growing sector of the 1990s and continues to fasttrack careers, spending power, local economies and real estate growth even today. The software sector has already established itself as a fast-growing sector. ITeS includes services such as call centers, transcription, data processing, online education etc.

It has made a huge impact on international workflow into the country, mainly because of low communication costs and the financial sense behind
outsourcing non-core activities. It is an obvious advantage for any modern city to have a significant presence of this industry, which creates white-collar, high-profile jobs and has remarkable effects on its real estate market,” says Varma.

IT linked to realty boom

For a city like Bangalore, having a steady influx of migrants seeking jobs in the many existing and upcoming technology companies, there was a huge
demand for housing and other infrastructure including hospitals, schools and shopping centres. Given the growth of realty in the last decade, and the
visible change in the cityscape, it can be said that the city grew mostly due to the demand from this segment.

Given the available skilled workforce, its inherent brand value, growth prospects and pleasant climate, Bangalore has become the technology capital of the country.

“The ideal conditions and popularity of the citys brand all over the globe, has made it much easier to establish a firm here,” says IT entrepreneur Sandeep

H S. “The availability of diverse options in housing, office spaces and rental arrangements too make this city very conducive to start a business,” he adds.

Hotspots

The IT office space inventory, though present in the city too, is now rapidly expanding along the ORR. Areas along the ORR near the Sarjapur Road stretch, Old Madras Road, Devarabeesanahalli, and Mysore Road are hotspots for IT development.

Good connectivity along with potential for residential developments in the vicinity are some of the factors that enable growth. Availability of large land
parcels too determines the potential for IT build-up in a certain locality.

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