Bangalore Commercial Real Estate Market Condition

One of India's principal skill centres in Bangalore. Numerous startup enthusiasts, business investors, skilled workers, and migrant laborers are drawn to it. Because of this, there is typically a strong demand for property in Bangalore throughout the year. Every young adult's fantasy city is Bangalore. Everyone, whether an engineer or a marketer, wants to try their hand at discovering their new talents and their new selves. In addition to start-up businesses, the city has top-notch academic and medical facilities. In addition, the Indian Silicon Valley is well known for having ideal weather. As a result, there is a high demand for properties in the Bangalore real estate market, and that demand is growing daily.
The Bangalore real estate trend never ceased to astonish us, even though India had three huge Covid waves. The number of housing units sold in Bengaluru increased by 33 per cent from 24,910 units in 2020 to 33,080 units in 2021. Additionally, the city had a 43 per cent increase in new launches, which contributed to Bangalore's real estate market's success. About 30,650 new units were added to Bengaluru in 2021.
When we talk about the Commercial Real estate market, the following are what crossed our minds :
Office spaces are commercial properties that can be bought or rented by business people so that they can set up offices to conduct their operations.
Retail spaces: Simply put, retail spaces are stores that serve customers directly. Income is assured by renting or selling shop locations. B2B (Business to Business) shops are also known as wholesale spaces. Since they sell directly to retail owners and handle large quantities of goods, these are typically larger than retail spaces. These are commercial locations that various companies use to erect warehouses, factories, and other facilities.
Logistics areas: These areas serve as assembly and distribution centres for industrial businesses. They resemble industrial warehouses.
Real estate : Devoted to the hospitality sector and the broader service sector is referred to as hospitality real estate. These include places to stay, eateries, theme parks, centres for entertainment, etc. Now, coming to what is the current condition of the Real Estate Market in India, especially Bangalore. To put it mildly, 2021 has been highly profitable for all aspects of real estate, including the commercial real estate market. Significantly, the commercial sector is now firmly on the path to recovery after suffering a setback as a result of the numerous lockdowns ordered as a result of the coronavirus outbreak. The main reason for this is that businesses are aiming to reopen their offices after creating a hybrid work culture to make employees more comfortable. Let's examine the performance of the commercial real estate market during the previous year through the first quarter of 2022. Office space has been in high demand and continues to be so. A significant amount of businesses in industries including Business Processing Management (BPM), IT, Banking, Financial, and Insurance Services (BFIS), among others, are searching for additional office space, creating a significant demand for the office sector. According to a report by the Economic Times, gross absorption of office space reached a record high in the first quarter (March 2022). According to Colliers, the gross absorption currently stands at 13 million square feet (MSF), a staggering 3x growth Year-On-Year (Y.O.Y.) for the first time in two years. Real estate services and investment management are provided by Colliers. According to a JLL analysis, the Grade A office market in the top seven cities is expected to increase in size by more than 1 billion square feet by 2026, according to the Economic Times. The office sector in India is known to have recovered from the pandemic's effects the quickest. According to another Economic Times article, the absorption of office space leases in the first quarter of 2022 was dominated by cities like Bengaluru, Chennai, and Delhi NCR. The amount of space leased increased by 97 per cent year over year (Y.O.Y.) to 11.4 million square feet (MSF). A news18 story states that 3.5 MSF of office space in Bengaluru was leased out in the first quarter of 2022, representing an increase of 5% year over year. In general, commercial property is found to have a high rate of appreciation. Commercial property offers a far higher Return on Investment than other types of investments. Since there is always a need for commercial real estate, the value of commercial properties will continue to rise. And taking advantage of this, big name companies like the prestige group are investing in commercial plus residential projects like the upcoming Prestige Park Grove.