Increased Commercial Space Desirable for Property Rates In Bangalore

Over the past few months residential property rates in Bangalore have remained tepid to some extent mirroring the trend in commercial property in Bangalore as well. High commercial property occupation in the city, if one were to, prognosticate is excellent for residential flats in Bangalore as well since commercial developments are occupied by companies which employ skilled employees who usually command hefty salaries. Recent developments in the city point to an uptake in the availability of commercial real estate in Bangalore as some large and prominent real estate developers in Bangalore have spent nearly 700 crores to purchase upcoming properties which are slated to be converted to commercial space.

With the recent entry of a few large companies into the Bangalore such as Flipkart and others, there is likely to be greater demand for commercial space in the city as well renewed demand for new projects in Bangalore which would house the new employees of the mentioned companies. Such is the expectation by the city officials, there is already substantial existing residential inventory in Bangalore which too needs to be off loaded yet the lukewarm trend in the cities real estate market needs further impetus to gain terminal velocity.

The entry of new companies into Bangalore may be the new critical impetus the city needs to achieve greater traction in the cities residential real estate market. The decision by some large commercial developers in Bangalore to undertake an overhaul of upcoming projects with the intent to convert them into commercial space is likely an essential and necessary step to bring about drastic change in the residential property in Bangalore, perhaps even enough to wake it from its slumber.

Though luxury homes in Bangalore are still highly priced and no indicator whatsoever points to a drop in value of such properties, they too have been affected by the slowdown the cities real estate sector. Flats for sale in Bangalore are abundant and often of a higher quality than those found in most other cities in the country, with the creation of additional commercial space and the subsequent occupancy by commercial enterprises, such flats in Bangalore stand a good chance to be occupied or sold within the next few months and hence the real estate market in Bangalore may gain traction as the city becomes a more desirable and internationally recognized destination for services beyond just IT.

Currently builders and developers in Bangalore point to the scarcity of commercial space in the city, the vacancy rate of which is already close to 4 percent and much below a healthy rate of 10 percent to accommodate new enterprises into the city with ease. The efforts to create a greater availability of commercial space in the city by such builders and developers in Bangalore is a lauded step as benefits of the same are likely to be felt across many other important sectors in the city as well.

As global changes on the other side of the continent reflect a protectionist tendency and a growing hostility toward immigrants and outsiders, the openness of cities such as Bangalore is likely to leave the city in a healthy position to capitalize on the losses of other cities and markets across who are taking a protectionist view of their economy and a xenophobic view of those from different cultures.