JOIN USBengaluru: Whitefield office rentals to rise by 8-10% in 2 yrs
With the Baiyappanahalli-Whitefield metro line expected to open by June, office space rentals in Whitefield will likely rise by 8-10% in the next two years, according to a report by investment management company Colliers.
Whitefield, the second largest office market in Bengaluru, has an office stock of about 40.4 million square feet and vacancy levels of 17.2% as of the fourth quarter of 2022. The metro will likely boost occupier activity in the region, according to the report entitled ‘Bengaluru Metro Rail: Key office market impact’.
Rental growth will also hinge upon overall occupier demand, macro-economic factors, etc, the report adds.
The report tracks the metro’s progress and its impact on commercial offices. It delves into how Whitefield and CBD reported a steady rise in office supply and leasing over the years as metro work progressed.
“Bengaluru CBD has undergone a transformation through building upgradations, redevelopments and changes in land uses since the metro work commenced. This has spurred occupier activity in the area, leading to a 79% increase in leasing during 2017-22 compared to the preceding six-year period.
"Today, the CBD market is experiencing low vacancy levels at 3.2%, despite increased supply, indicating occupiers’ need to be centrally located with superior connectivity. The metro project has undoubtedly transformed the office market of CBD and will positively impact the Whitefield market as well in the next two to three years,” said Vimal Nadar, senior director and head of research, Colliers India.
Saurabh Garg, co-founder and CBO at NoBroker, a real-estate platform, said the metro line would also impact rents in many localities in Whitefield as professionals would consider moving closer to their workplace. Public transport connectivity will speed up development in the region, he added.