Whitefield most sought-after real estate destination in Bangalore

Cumulative investments since nineties exceed Rs 2,000 crore

Whitefield is getting continuous investments compared to Hosur, Bannerghatta and Sarjapur Road. So far the Export Promotion Industrial Park (EPIP) located in Whitefield has received investments of over Rs 2,000 crore since its inception in the mid-90s.

Whitefield has scored over other locations namely Hosur, Bannerghatta and Sarjapur roads in terms of infrastructure, investment and facilities, said Manisha Grover, associate director strategic consulting at Jones Lang LaSalle, India.

Further, with the proposed international airport located in reasonable proximity, many IT companies are preferring the Whitefield area.

With these activities an estimated 6"�8 million square feet of tech space is being made available in the area over the next 2"�3 years, she added.

Also along with this hectic pace of office space development, Whitefield has seen a good pace of residential project development. More than 20,000 apartments, plots and villas catering to the middle, upper-middle and premium segments is also in various stages of construction.

The office space supply in locations such as Whitefield and Electronic City has now overtaken the demand; hence the rental values are not likely to escalate further in the near future.

These areas continue to find favour with corporates looking for a long-term commitment to operating in Bangalore. The classic selling proposition of space in these areas is large floor plate, excellent car parking facilities and expansion/growth opportunities, said Ram T Chandnani, head, south India operations, CB Richard Ellis South Asia. Approximately 8.8 million square feet of space is under development in suburban and peripheral areas and would be ready for possession by the end of this year. Of which 3.65 million square feet is pre-committed / leased, he added.

According to Jones Lang LaSalle's India Office Market Index, fresh construction activity is underway in all business districts.

About 1.1 million square feet of Grade A space is expected to be completed in the CBD (central business district) by February 2006.

The secondary business district (SBD) has over 2.3 million square feet of Grade A supply under construction, while the peripheral business district (suburbs) is witnessing the maximum activity with 3.5 million square feet of Grade A space slated to be added to the existing stock by the end of 2005.