JLL India - May 2012 Real Estate Monitor – Bangalore

 A monthly (May 2012)  snapshot of what is happening in the real estate market of India's seven major cities By Jones Lang LaSalle (JLL) India

The cities are..! 

1. Bangalore

2. Chennai

3. Hyderabad

4. Delhi

5. Kolkata                       

6. Mumbai

7 .Pune

Bangalore

Office market..!

The Bangalore office market witnessed healthy transaction activity in May. Key transactions included Axis Aerospace & Technologies leasing space in Vaswani Centropolis, Longford Road, KPMG leasing space in Salarpuria Hallmark 1 and Ericsson leasing in Umiya Business Bay. Vacancy rates declined nominally due to stable demand amidst limited fresh supply.

Marginal appreciation of rents and capital values were recorded along the Outer Ring Road and SBD locations such as Inner Ring Road, Old Airport Road and Koramangala.

Space  market..!

Demand remained stable in May, 2012 with no major retailers leasing space during the period. With no new malls coming on stream, vacancy rates in the existing malls remained stable. Rents and capital values of city malls have remained stable over the past two years.

Residential apartments market..!

Demand for residential apartments increased marginally in May. Most of the new residential projects launched were on and along Hosur and Bellary Roads. Rents increased in the month due to the influx of people, mainly IT/ITES employees, into the city with the increase in employment in the sector.

Capital values appreciated marginally across various sub-markets due to increases in sales volumes and also due to new projects being launched at prices above the market average.

Office	Rents	Capital Value
Key Precincts	INR per sq ft per month	INR per sq ft
Outer Ring Road (North)	48-52	5,000-6,000
Old Airport Road	60-65	6,000-7,000
Outer Ring Road (Eastern)	46-48	4,500-5,000
Old Madras Road	30-34	3,000-3,500
Electronic City	26-28	2,400-2,800
Retail	Rents	Capital Value
Key Precincts	INR per sq ft per month	INR per sq ft
Koramangala	80-150	9,000-16,000
Indiranagar	90-180	12,000-18,000
New BEL Road	50-80	6,000-10,000
Commercial Street	175-250	16,000-20,000
Jayanagar	80-120	7,000-15,000
Residential	Rents	Capital Value
Key Precincts	INR per month for a 1,000 sq ft 2BHK apartment	INR per sq ft
Old Madras Road	10,000-15,000	5,000-6,000
Indiranagar	18,000-20,000	10,000-20,000
Bellary Road	8,000-10,000	3,000-4,000
Hosur Road	10,000-12,000	3,000-4,500
Whitefield	10,000-15,000	3,000-5,000
Tumkur Road	7,000-10,000	3,000-5,000
Kanakapura Road	7,000-10,000	3,000-4,500
Mysore Road	6,000-10,000	2,500-3,500

 

Source: Jones Lang LaSalle Research 

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