Bangalore tops in commercial realty, courtesy IT, ITeS firms

Bangalore's IT and ITeS companies may keep cribbing about the city's infrastructure, but it has not deterred the growth in commercial real estate in the city.

For Bangalore has been able to absorb more commercial space (7.7 million sq ft) than its counterparts in the country in 2004, with the maximum contribution being from IT and ITeS companies, according to the year-end report by real estate consultants, Cushman and Wakefield.

Bangalore's poor infrastructure had attracted a lot of media attention last year with IT and ITeS companies threatening to move to other destinations.

According to the report, the city has, however, managed to retain the top slot as a favourite destination for IT and ITeS companies as compared to the National Capital Region (NCR - Delhi, Gurgaon and Noida), Mumbai, Hyderabad and Chennai. Almost 80 to 90 per cent (6.73 million sq ft) of the commercial space absorbed in 2004 in Bangalore, was by IT and ITeS companies.

In 2004, the entire commercial space absorbed in India was 16 million sq ft which was predominantly contributed by Bangalore (7.7 million sq ft) followed by NCR (2.9 million sq ft), Mumbai (2.5 million sq ft), Hyderabad (2.2 million sq ft) and Chennai(1.6 million sq ft).

Chanakya Chakravathi, joint managing director, Cushman and Wakefield told Business Standard, "Though companies face infrastructural hurdles in Bangalore, it has not deterred IT and ITeS companies in setting shop in this city."