The current Office space absorption in Bangalore is one the best in the country

Bangalore – One of the Asia’s hot office-space locations

Very recently, a headline has grabbed everyone’s attention, i.e. Bangalore is predicted to witness the second highest demand for being the city with 6.3 million sq feet office space absorption in Asia Pacific region, this year. This report was brought under public’s eye by reputed and global property consultant - Find Space Consultants.

Tokyo is expected to seize the 1st rank in 2014 by witnessing 7.6 million sq feet office space absorption, according to the report. Among 30 cities, Manila is crowned the third position by having 6 million sq feet office space demand. Another city from India, i.e. its capital has taken the 6th position with estimated 3.7 million sq feet office space absorption at Bangalore which turned out to be the hub of advance technology industries and in the mid 90s, when other states have merely developed; this city seized the limelight by nesting greatest number of IT companies in India.

 The Silicon Valley of India has relative advantages in the IT/ITES sector which is due to the presence of various factors likee

• high education facilities and skilled work force
• favorable state government policies
• accessibility to research laboratories
• foreign investors’ eye on the place

This article aims to find out the reasons for Bangalore’s being in the global news for its immense development in office sector.

Present scenario: Worldwide economic scenario has greatly affected IT/ITES industry, which has resulted in to the overall growth of particular sector in demand for Plug n Play offices in India. Dollar to rupee exchange rate has become more favorable and global economic picture has also enhanced. This will lead to increasing exports of Information Technology services from India. As a result, IT companies are expected to expand. Since, maximum numbers of IT companies are located in Bangalore; it will give a boost to office space absorption. The growth is estimated to be 16% more than previous year.
     
Balance distribution of office locations: Already stuffed office locations like Electronic City, Central Business District, Indira Nagar and Offices at Koramangala are facing congestion, heavy traffic and mismanagement due to over demand offices. But still Bangalore has continued to be the hot spot with its perfect extension plans and plot allocations in the suburban locations like Outer ring Road belt, Whitefield etc.

Increased interest of startups: Globalisation and urban restructuring has welcomed huge networks of engineers, techie minds with international work experience, tech savvy customers and rocketing pool of fund providing companies like SAIF, Light speed, Canaan Partners etc. As there are many investment, fund providing companies and favourable government policies, approval of start up funds is easy. The start up companies find it easy to follow the success track of mentors which are globally reckoned firms. New ventures can easily pick up experienced employees from the huge reservoir. Besides, it has already become the brand ambassador of cutting edge technology. These factors are renovating the city into a global start up centre.