the impact of relaxation in regulations pertaining to FDI in
The government has also initiated policy changes that will
give a jumpstart to the slow moving real estate sector. Some
of the important policies implemented are: The Real Estate
Regulatory Act (RERA), REITs, the Land Acquisition, and
Rehabilitation and Resettlement (LARR) Act. These bills will
ensure more professionalism, better transparency, and ease of
doing business in the real estate sector.
Commercial activity has traditionally been concentrated in the
key metropolitan cities of Mumbai, New Delhi (NCR), and
Bengaluru. Though many other cities have become regional
commercial hubs, major focus of office and retail spaces
remain in these three key cities.
Being the commercial and financial capital of India, the
commercial office space absorption has been dominated
by Banking and Financial Services and Insurance (BFSI)
in Mumbai at almost 40 percent. Unlike 2014, the demand
outlook for 2015 and beyond looks very positive. Although the
supply in Mumbai is high at the moment with current vacancy
levels at approximately 20 percent, this is likely to change
significantly in the next 12 to 18 months.
Mumbai’s office market size stands at approximately 120
million sq. ft. (all classes) and Class A office market stands at
around 70 million sq.ft. The office rents range from $9 (distant
suburbs) to $60 (Prime) per sq.ft. per year
• The Maharashtra state government has launched the “Mumbai
Next: MMR Transformation” to transform Mumbai into a
financial, commercial, and entertainment hub.
• The Mumbai metro Phase II and III and mono rail are much
awaited support structures to ease the overburdened suburban
• A new proposed costal road will run along the entire western
Mumbai coastline and to reduce commute time.
• The Vadodra-Mumbai Expressway, a 473 km expressway, is
• The state also plans to create a logistic park in Bhiwandi, a
suburb of Mumbai.
• Mumbai’s new proposed 2nd state of the art international
airport had been stuck due to environmental red tape. It might
soon see the light of day and will be an important decongestant
to Mumbai’s air and cargo traffic.
With the U.S. economy revival, Indian IT companies are
getting the impetus to invest in infrastructure. The city is
likely to witness increased demand of commercial real estate
from corporates for captive/built-to-suit campuses. Many IT
and ITES companies have invested in large campuses for
their future expansion plans. These account for nearly 60 to
70 percent of the commercial property transactions in the
city. Bengaluru accounted for nearly 48 percent of the Indian
commercial property offtake in 2014.
Bengalurus’s office market size stands at approximately 114
million sq. ft. The office rents range from $6 (distant suburbs)
to $25(Prime) per sq. ft. per year.
BENGALURU – INFRASTRUCTURE DRIVERS
• Bengaluru’s infrastructure has not managed to catch up with
the city’s increasing population and the city has been witnessing
massive traffic problems. The much-awaited Namma Metro
or Bangalore Metro will be commissioned for public use by
RECENT MAJOR TRANSACTIONS – BENGALURU
CLIENT BUILDING NAME LOCATION AREA - SF
FLIPKART EMBASSY TECH VILLAGE OUTER RING ROAD 3500000
KPMG RMZ ECO WORLD OUTER RING ROAD 800000
WIPRO DIVYASREE TECHNOPARK WHITEFIELD 50000
MERCEDES BENZ EMBASSY GROUP WHITEFIELD 266021
ACCENTURE DIVYASREE TECHNOPARK WHITEFIELD 150000
VOLVO INDIA PVT LTD RMZ ECO WORLD OUTER RING ROAD 800000
ANZ RMZ ECO WORLD OUTER RING ROAD 395000