Average rent for office space in Bangalore saw marginal increase in the third quarter of 2012 even though the leasing activity was moderate when compared with the previous quarter.
According to Jones Lang Lasalle’s Asia Pacific Property Digest for Q3 of 2012, the average rents for office space across the central business district (CBD) and secondary business district (SBD) saw a marginal increase.
“This was due to limited supply and stable demand from IT occupiers which prefer these locations for their proximity to the city’s residential catchment areas,” the report said.
However, there was a slight decline in the leasing activity during that period with a total transaction volume of 670,900 square feet as against 1.7 million sq ft reported in the second quarter of 2012.
Major leasing transactions during the period include Monsanto’s leasing of 200,000 sq ft at Mfar Manyata Business Park; Citrix’s leasing of 78,000 sq ft at Saragod Imperial, and XL Health Care leasing 75,000 sq ft at Salarpuria Sapphire in Indira Nagar.
In the third quarter of 2012, Bangalore’s retail market witnesses a sees a steady consumer demand with the absorption touching 227,500 sq ft compared to 121,000 sq ft absorbed in Q2 of 2012.
Rents in the prime sub-market malls in the city remained stable over the past eight quarters, with average gross rents at Rs 178 per sq ft per month, it added.
