The IT software services/ITeS companies are the main drivers of demand for commercial office space and high-end engineering companies also continue their fascination with Bangalore by expanding and committing to a substantial portion of office space.
According to CB Richard Ellis' second quarter 2005 property outlook, demand is growing at a healthy pace and absorption for the rest of the year is likely to be similar. Of the 14 million sqft supply across Bangalore city (including Grade A & B), about 11.38 million sq ft of commercial office space is under construction across all micro markets which will be ready over the next two quarters.
Rental and capital values have witnessed a marginal increase in the central business district (CBD). Non-CBD areas however have remained stable in the suburban and peripheral micro markets.
