Bangalore’s Outer Ring Road spanning from Hebbal to the Silk Board Junction has been recognised as the amongst the India’s fastest growing IT/ITeS growth corridors, according to a report by Vestian Global Workplace Services.
This stretch, 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 per cent of Bangalore’s total IT space, continues to prove to be an attractive destination for IT / ITeS corporations.
ORR’s IT growth corridor story commenced in early 2000s and with the initiation of the 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 — Whitefield and Electronics City.
| THE NUMBERS SPEAK # 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 |
Shrinivas Rao, CEO, Vestian Global Workplace Services said, “We are of the opinion that ORR will to continue to remain an attractive ITTeS 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 and social infrastructure.”
While the ORR over the years has emerged as the most preferred office space destination, this micro market foresees a few challenges including uncertainty on the future of tax holiday for SEZ units post implementation of DTC in April 1, 2011, may have an adverse effect on ORR, at least in the short term, as most of the office space supply along ORR is scheduled under the SEZ category. Also, the growth of ORR may slow down due to the shift in focus towards Bangalore North for upcoming developments.
A few factors which makes the ORR one of the most attractive IT growth corridors of Bangalore are the availability of large land parcels; and proximity to established IT talent pool and residential hubs 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.