Several Bangalore-based property developers are planning, raise funds in the Singapore stock market. Indian realty developers have also been raising billions of rupees through initial offerings (IPOs) in India. Many more plan to raise similarly large sums over the coming months. A significant portion of the foreign funds is headed for commercial projects, which is witnessing frenzied activity. According to real estate industry: sources, nearly 50 million sq ft of high-grade office space has been added over the past two years all over India. which is double of what was added over the past half a century. The capital values of commercial offices have also soared by over 50 per cent in many cities. According to the ASSOCHAM study on the Future of Real Estate Investment in India, the requirement for office space has shot up from 4 million sq ft in 1999-2000 to IC million sq ft in 2006-07. This is projected to jump to 200 million sq ft in about three years. Cities like Mumbai and Bangalore are seeing phenomenal growth in the commercial sector. According to 'Emerging Trends in Real Estate Asia Pacific 2007,' published by PricewaterhouseCoopers and the Urban Land Institute, these two cities - among nearly a score in the Asia-Pacific region - will witness strong development in the coming years. Mumbai ranks second next to Singapore among the top cities in which to buy office space, while Bangalore ranks among the top five markets in the retail sector. A survey regarding office space absorption, conducted by a real estate consultancy, ranked Bangalore, along with London and Tokyo, as the top three cities. India's IT capital is home to international giants, and demand for office space from the IT. biotechnology, off-shoring, financial services and banking sectors is huge. The city is expanding in all directions, particularly in areas like Whitefield, Electronic City and North Bangalore.
Brigade Group. a leading developer, is developing several state-of-the-art commercial
buildings in several parts of Bangalore. They include North Star, set in Brigade
Gateway, a landscaped 40-acre enclave in Malleswaram-Rajajinagar. The 30-storeyed
structure will have a million sq ft of office space with state-of-the-art facilities.
The enclave also includes a luxury hotel, mall and multiplex. The group is also
promoting Summit I and II, two modern office buildings on Whitefield Road. The
two buildings will be inter-connected through sky-bridges. Another project is
Brigade Tech Park, which offers over 430,000 sq ft of office space. It is located
next to the Information Technology Park and the EPIP zone. Another Bangalore-based
developer. Rohan Builders, began operations in 1993. It has undertaken projects
for multinationals including Coke, Pepsi, Hindustan Lever. Fiat, Nestle, LG. Cargil,
Cadbury's and Colgate. The company has on hand about 10 residential projects,
both in Bangalore and Pune.
The Salarpuria group, an ISO 9001:2000 company. has also
promoted several commercial and residential projects in Bangalore. It has completed
over, 8 million sq ft of commercial and residential properties in Bangalore, including
IT parks. IT complexes. and business and retail complexes. The group has now ventured
to other cities, including Chennai, Mysore, Pune. Hyderabad. Kolkata and Delhi.
Developers in India are indeed expanding geographically, as they take up ambitious
projects in fast-growing cities. But with billions of dollars being invested in
several sectors - including SEZs, IT parks. infrastructure, power plants, highways
and railway freight corridors - demand for both commercial and residential properties
is expected to surge over the coming years.