IT / ITeS Growth Corridor Series Report released by Vestian Global indicates strong pointers for continued emergence of Outer Ring Road Bangalore as a favoured destination
Vestian Global Workplace Services, a subsidiary of the Chicago-headquartered Vestian Group today released the inaugural (September 2010) edition of its IT/ITeS Growth Corridor Series, which focuses on Bangalore’s Outer Ring Road spanning from Hebbal to Silk Board Junction. This stretch which is popularly referred to as ORR, which has developed rapidly in the last 10 years into an Information Technology (IT) growth corridor and accounts for almost 25% of Bangalore’s total IT space, continues to prove to be an attractive destination for IT / ITeS corporations.
The significance of the inaugural report is the emphasis it places on the emergence of the ORR as a growth corridor for IT/ITeS development in Bangalore. ORR’s IT growth corridor story commenced in early 2000s and with the initiation of Bangalore International Airport (BIA) in 2008 in Devanahalli, the ORR stretch gained importance since it serves as the main artery between BIAL and major IT hubs of Bangalore i.e. – Whitefield & Electronics City.
By the numbers, the estimated growth of ORR in 2010 and beyond can be put down as following:
- 18.6 million sqft of operational Grade A office space
- 3.3 million sqft under construction
- As of H1 2010, vacancy level is only 5% (1 million sqft) and expected to drop further by end of 2010.
- 25% of Bangalore’s total operational IT space
- 75% of Bangalore’s total operational IT/IteS SEZ space
- 95% of office space occupied by IT/ITes companies
- 28 million sqft planned Grade A office space
Mr. Shrinivas Rao, CEO, Vestian Global Workplace Services said, “The Vestian Global IT / ITeS Growth Corridor Report aims to highlight the aspects of ORR that were previously unanalysed. We are of the opinion that ORR will to continue to remain an attractive IT/ITeS growth corridor of Bangalore and improve further with planned completion of numerous flyovers/ underpasses between Hebbal and Silk-Board Junction by end of 2011. This will be further enhanced through the upcoming business & social infrastructure.
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While ORR over the years has emerged as the most preferred office space destination, this micro market foresees a few challenges including uncertainty on future of tax holiday for SEZ units post implementation of DTC in April 1, 2011 may have adverse effect on ORR, atleast in short term, as most of the office space supply along ORR is scheduled under SEZ category. Also the growth of ORR may slowdown due to the shift in focus towards Bangalore North for upcoming developments.”
Few factors which makes the ORR one of the most attractive IT growth corridor of Bangalore are the availability of large land parcels; and proximity to established IT talent pool and residential hubs when compared with other peripheral locations of Bangalore. Ongoing infrastructure works aimed to transform the ORR into a signal free corridor and the upcoming hotel and retail projects will further enhance connectivity and support infrastructure in this micro market.
Vestian Global offers occupier-focused real estate services and is built on the strong foundation of an advocacy based approach to service delivery. The IT / ITeS Growth Corridor Series of research reports from Vestian Global is designed to enhance this advocacy based approach through relevant and high impact advisory on destinations for IT / ITeS corporations.
