New research issued by global real estate adviser DTZ has revealed that the Grade A&B leasehold office space absorption in Bangalore crossed 8.9 million sq ft in the first three quarters of 2006.

Its latest research report into the change in occupied space from one quarter to the next in Bangalore also predicts total absorption for the city to exceed 11 million sq ft by the end of 2006, surpassing its own previous year’s absorption record.

The report's key findings include:

  1. The office market absorption continues to be driven by IT/ITES sector which accounts for over 70% of total office space absorbed in this quarter
  2. A marginal increase recorded of CBD and Off-CBD’s share in total absorption of office space because of new stock addition of UB City in CBD
  3. Warmshell leasehold Grade A office space rentals prevailing in CBD are INR 61 per sq ft
  4. Rising demand from corporates and IT/ITES sector has lead to an increase in rental values across most micromarkets of Bangalore except in PBD (Whitefield, Outer Ring Road, Sarjapur Road, Hosur Road, Electronic City and Bellary Road)
  5. Rentals in SBD (suburban areas) range from INR 36-40 per sq ft and have risen by 18% during the last quarter

Hugh Hamilton, global corporate services director of DTZ in India comments: "The absorption figures for Bangalore are the highest in India and compare well with other global cities. PBD contributed the most to office space absorption over the last two quarters and going forward, the CBD and the Off-CBD areas are not expected to contribute significantly due to the lack of Grade A office space supply there."

News Source-INR News