Outer Ring Road accounts for a third of city-wide share
Bengaluru continued to lead office space leasing among top six cities, recording absorption of 4.1 mn. sq.ft. during the first half of 2021 and accounted for approximately 37% of the overall leasing activity in the country which stood at 10.9 mn. sq.ft., said realty advisory firm Savills India.
The micromarket of Outer Ring Road (ORR) accounted for one third of the city-wide share and was followed by the secondary business district and eastern peripheral micromarket, primarily Whitefield and Brookefield, it said on Tuesday.
Both the micromarkets contributed around 25% of the leasing activity in the city. In fact, East Bengaluru – Brookefield, Whitefield and eastern part of ORR – accounted for more than half of the city-wide absorption in the first half of the year.
In the first half of the calendar 2021, large sized deals continued to drive realty in the city. As usual, IT sector continued to account for the majority share of demand for office space in the city. Engineering & manufacturing sectors contributed 13% towards the overall leasing activity. However, co-working segment’s sectoral share of 15% in 2020 fell to 2% in H1 2021, said Savills India study.
Impact of 2nd wave
However, a quarterly report by property portal 99acres.com, stated the city’s real estate market was not immune to the second wave of COVID-19. While realty came to a standstill during this period, micro-markets in Whitefield and Electronic City remained popular among potential homebuyers.
In a press release, Maneesh Upadhyaya, Chief Business Officer, 99acres.com, said the months of April and May recorded a ‘dip in numbers unheard of’. “Responses on 99acres went down by over 25% in April-June 2021 against the previous quarter. Owner listings, too, saw a 5% degrowth as the seller community echoed the uncertain and grim market sentiment,” he said.
The period from April-June 2021 saw demand for ready homes, especially re-sales, as potential buyers were worried about delays in construction of ongoing projects due to the pandemic.
Source: Read Full Article