Bangalore, India, February 23, 2007 - Office space in Bangalore's IT suburb of Whitefield can be rented cheaper now than a year ago thanks to an oversupply situation in the area.
Rentals for Grade A properties in Whitefield are now around Rs.20 per sq.ft today versus Rs.20 per sq.ft a year ago. Even in ITPL rental values are going down.
According to real estate sources, while supply in Whitefield is around 6 million sq.ft, demand is almost 4 million sq.ft lower, creating a huge oversupply situation. There is also pressure from new IT centers such as Sarjapur Road and Old Madras road that are better connected. Though the state government is considering a plan to extend the metro rail project to Whitefield and Madivala, this is at best years away.
The softening rental market in Whitefield offers lessons to scores of other areas across the country where huge supply of commercial space is being created without adequate demand.
By INRnews Correspondent Source www.inrnews.com
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