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5 Supply, Absorption and Vacancy trends of the City
In the last eight years, Bangalore and Whitefield micro-market had witnessed steady supply and absorption of office space.
In particular, in the last 4-6 years, as compared to the major cities in India like Mumbai, NCR, Pune, Kolkata, Chennai and
Hyderabad, Bangalore has witnessed the highest quantum of office space absorption. The chart below represents the supply,
absorption and vacancy trend for the city since 2009:
A snapshot of the supply, absorption and vacancy trend for the city is as below (based on C&W Research):
• The total stock of non-captive commercial office space in Bangalore as at 31 December 2014 is approximately
126.3 million sq ft (including Grade A and B office space).
• The total absorption of commercial office space in Bangalore from January to December 2014 has been approximately
12.6 million sq ft (approximately 48% higher than the previous year).
• The supply of commercial office space from January to December 2014 increased by around 61% at approximately
9.4 million sq ft vis-a-vis the commercial office supply in the year ending 2013 at approximately 5.8 million sq ft.
• The expected commercial office space supply in Bangalore in the next 2-3 years is approximately 30.6 million sq ft.
• The rentals in peripheral micro-markets of the city have remained stable in 2014 vis-a-vis the rentals in 2013 with the
exception of North Bangalore which has increased by around 6%.
• The rentals in CBD/Off-CBD and suburban micro-market has reduced by around 14% and 8% respectively in 2014
vis-a-vis the rentals in 2013.
• The vacancy level for commercial office space in Bangalore as at December 2014 was approximately 13% and that
as at December 2013 was 14%.
• The peripheral market of ORR will continue to remain as the preferred occupier destination considering the concentration
of pre-commitments in this location during this year. Going forward, rental levels are anticipated to hold on to the
same levels.
Area (million sq ft)
Vacancy (%)
Supply (million sq ft)
Absorption (million sq ft)
Source: C&W Research
14
12
16
10
8
6
4
2
0
2010
2011
2009
2012
2013
2014
2015
(F)
15.4%
16.6%
12.0%
14.3% 14.1% 13.0%
14.0%
