Bengaluru leasing market on revival, absorption to touch 10 mn sq ft: JLL

Topics Bengaluru | Real Estate

The leasing market in Bengaluru is set to witness a strong revival with absorption by end of 2021 set to touch approximately 10 million sq. ft., according to property consultant JLL.

This is close to 2017-2018 absorption levels for the city, it said in a statement on Monday.

In the last two months (September-October) the city has seen closure of approximately three million sq. ft, highest in 2021.

Bengaluru continues to dominate with the highest leasing activity in the country with overall absorption of approximately 7.2 million sq. ft. year to date.

A strong supply pipeline, flexible deal structuring, return to work along with strong revival in market sentiment will continue to strengthen momentum of office leasing space in the city.

The city with a total workforce of approximately three million is expected witness a phased return of approximately one million employees to office by first half of 2022, it said.

"An increased activity from start-ups in the city has been observed and these businesses are driving the demand for agile workspaces. Out of the 73 unicorns in India, 33 have been founded in and are headquartered in the city. Most of them have expanded or optimised their real estate footprint in the city as employees return to offices in a phased manner," said Managing Director - Bangalore & Head - Office Leasing Advisory, India, JLL, Rahul Arora.

Outer Ring Road continued to witness the highest absorption in the city of approximately 2.8 million sq. ft. out of the 7.2 million sq. ft. Close to 7,000 seats have been leased out of the 17,000 seats.

Managed office players continue to be significant absorbers of space, witnessing an absorption of approximately one million sq. ft.

Peripheral markets like Whitefield, Hosur Road & Electronic City are witnessing renewed interest owing to metro lines nearing completion, improved support infrastructure & lower top line rentals. Leasing momentum continues to strengthen with several new Request for Proposals (RFPs) at all-time high of 12 million sq. ft. across various micro markets which is expected to put pressure on rentals in the next 3-4 quarters, it was stated.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel