Invest Inr 1 Cr with Annual Rental yield of 8.27% and Annualised ROI of 11%
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LEASED OFFICE SPACE,VARTHUR ROAD,WHITEFIELD
Why invest in this opportunity?
The property is in an established IT location of Bangalore. It has a good accessibility to other parts of the city and has good neighborhood of premium residential developments, retail, and other social infrastructure. Metro will be commissioned in this micro-market in 2022, this will further improve the attractiveness of this location.
The property is a Grade A office park and fraction of a floor is available for sale. The existing tenant is a MNC having HQ in Australia.
Accessibility & Location
The project is located along 80 feet road. Other attributes to the location are:
A mall is located 1 km and a metro station (under construction) at 4.5 kms.
This micro-market is home to fortune 500 IT/ITES giants including SAP, TCS, Cognizant Tech, Cap Gemini, Accenture, HCL Tech, Wipro, GE, Net App, and many others.
Post commencement of metro in 2022 in this micro-market, this area is expected to witness further growth.
Market & Asset Performance
- This micro-market has operational office space inventory of 31.2 million sqft (20% of total Bangalore’s office space inventory).
- The average annual absorption of office space in this micro-market is 1.5 to 2.5 million sqft.
- The average rental appreciation between 2018-20 was between 5% and 8%.
- While both supply and absorption of office space declined during first lockdown in 2020, both bounced back sharply to pre-COVID levels with strong demand from multinational tenants in the tech hubs of India 0.8 million sf of office space was absorbed in the CYQ1 2021.
- Many Tech firms have initiated RFPs for expansion of facilities. The absorption levels are expected to resume pre COVID-19 levels in 2022.
Expected Growth Scenarios
This micro-market will continue to remain hub of IT companies in Bangalore. Post commencement of metro in 2022, this micro-market will witness spike in real estate activities. The average annual absorption is expected to be around 2 million sqft from 2022 onwards. The rentals will appreciate at least at 5% annually in medium term.