DTZ-Track2Realty study on commercial real estate-IV

Date : Feb 27, 2013

Track2Rrealty Exclusive: Analysis of South Zone

Bangalore is the only major metro in the country which saw a year-on-year increase in take-up of office space in 2012. The total take-up increased by 9% to 8.3 million sq ft in Q1-Q3 2012, from 7.7million sq ft in the year-ago period as a number of occupiers took-up space for their future requirement for consolidation and expansion.

However the take-up recorded a year-on-year decline in both Chennai and Hyderabad by 28% and 36% respectively in the wake of weak demand from both US and European companies. IT/ITES continues to account for majority of office space demand in south zone, followed by manufacturing, healthcare and consulting sectors.

 Best performing micro markets:

-          Bangalore: PBD ORR, Whitefield, Bannerghatta Road

-          Chennai: SBD, CBD, PBD OMR (Close to Taramani)

 -          Low performing markets:

-          Bangalore: Hosur Road, Electronic City

-          Chennai PBD OMR (farther stretches, close to Siruseri), Ambattur 

Source: Market Intelligence, DTZ Research

Emerging Markets: Bellary Road in Bangalore

 Development pipeline 2013, major projects: 

Source: DTZ Research