L&T Realty SEZ To Boost Property Markets In Bengaluru

According to one of the leading real estate consultancies, office space lease activity in India crossed the 40 million-sq ft mark in 2016. The demand is mainly spurred by the information technology and financial service companies that are setting shop here. Among the country's top office space absorbers are Bengaluru and Hyderabad. India's information capital has in fact outperformed them all. Data show Bengaluru has seen the highest net office space absorption in the past nine years. This is precisely why real estate developers are so upbeat about Bengaluru.

Coming soon

Real estate major L&T Realty recently got an approval to create a special economic zone (SEZ) in north Bengaluru. The Mumbai-based company plans to create commercial office space of around three million sqft in the SEZ. This is a part of a large mixed-use development having a total potential of nine million sqft. The SEZ will also have a residential township.

Also read: Metro, Jobs And Decongested Roads, Bengaluru Stands To Gain From Karnataka Budget

The impact on housing

The demand for residential real estate is on the rise in Bengaluru. According to a PropTiger DataLabs report, home sales in the city increased 25 per cent in January over December last year. New Project launches also increased 67 per cent in the same period. More and more developers are queuing up in Bengaluru, announcing new projects.

Sample this.

• Godrej Properties is about to come up with a new housing project in Bengaluru. The project will sprawl over an area of eight lakh sq ft.

• Essar Group has finalised the sale of housing project to SNN Builders for Rs 490 crore. The eight-acre project has five 40-storey towers having more than 400 plush 3, 4 and 5BHK apartments.

• Global private equity major KKR will make an investment of Rs 145 crore in Mantri Developers' luxury housing project based in Bengaluru.

This already booming demand for housing in Bengaluru will further be stimulated by the upcoming SEZ. It is not just employment opportunities that spurs demand for housing in the city. Cost of living is another reason that attracts home buyers to the city. According to a report compiled by the Economist Intelligence Unit (EIU), Bengaluru is ranked as the third cheapest city in the world to live.

Also read: Bengaluru Office Builders Flock To Hyderabad