Demand for office space firm in city

emand for office space firm in city
The increase in FAR and mixed land use will create new spaces, and promises to drive the rates in these localities, writes Poornima B V


In anticipation of the growing demands of a city like Bangalore, which has transformed into a global metropolis, the Comprehensive Development Plan (CDP) - Master Plan 2015 - has recognised the importance of mixed land use. The plan also recognizes the need for proper FAR (floor area ratio) management to encourage redevelopment and urban renewal.
A far-reaching provision is the relaxation of zonal regulations. No longer will permission be necessary from the Bangalore Development Authority (BDA) for changing land use. If commercial activity has been permitted in a particular area, people simply have to get a licence to open a commercial enterprise.
FAR, also called built-up area, has been increased to 3.25 depending on the zone and road width. The maximum FAR till now had been two. The FAR has now been increased to four around the proposed metro stations and bus terminals. Along the mutation corridor (arterial and main roads, which have been earmarked as commercial areas), the FAR has been increased to three. But commercial enterprises will have to provide an entry and exit into the mutation corridor, so that residential areas around can be insulated from commercial activity.
In the central areas of the city, the master plan has allowed for additional FAR, to encourage re-development. This is meant to act as an additional incentive for people to give up some of their property for widening roads. In areas such as Chamarajpet and Balepet, for buildings on plots of 3,875 sqft to 43,055 sqft, the FAR has been increased by 0.25 more than the existing FAR and by 0.50 if the plot size is more than 4,000 square metres.
FAR includes escalators, open balconies, staircase and corridors, according to the CDP. For example, if the area of the land is 30,000 sqft and the FAR is three, then the constructed built-up area can be 3x30,000, i.e., 90,000 sq ft. Built-up areas such as staircases, common areas and balconies are now part of the FAR under the new CDP.
The State Government has also evolved zoning regulations under the CDP. According to the new flexible zoning system, which allows for mixed land use, certain commercial activities can be allowed in residential areas. This is in anticipation of the growing need for certain kinds of commercial activity that caters to the immediate needs of people in residential areas. The mixed land use concept addresses the demand for employment, shopping and residential areas within the city. The mixed land use areas are those where employment, shopping and residential land uses will be integrated in a compact urban form and will be easily accessible by public transport.
The land use zones are classified as:
Residential (main) Residential (mixed) Commercial (central) Commercial (business) Mutation corridors Commercial axes Industrial (general) Industrial (hi-tech) Public and semi-public
The areas of the city which have predominantly residential land use patterns are considered for the residential (main) zone. This includes many old areas of the city such as parts of Malleswaram, Richmond Town, Vasanth Nagar, Jayanagar, Vijayanagar, Visveswarapura, Rajajinagar, R T Nagar and so on. The major and minor roads which have commercial activities along them are recognised as commercial axis and are included within the commercial axes zone. As these are part of the residential zones, the regulations that apply to them will be the same as what applies to the main zone in which they are located. The FAR for the commercial axes will be the same as that for the residential (main) zone through which it is passing.
Realty prospects and
implications
What this translates into is that there will be a substantial increase in commercial property values, especially in areas close to wide roads, close to metro stations and bus terminals. Also, office space rentals may go up in residential areas as a result of mixed land use norms. The Government has made it clear that only non-polluting, clean commercial activities will be allowed in these areas.
The increase in FAR has a direct effect on commercial property prices in some areas especially MG Road, CMH Road and other much soughtafter areas. Rental rates are already up in these areas. The retail rental rates are as high as Rs 150-200 per sqft on CMH Road and on M G Road it is Rs 200-350 per sqft, according to industry sources. Where there's a huge demand for office space and the supply is less, the FAR has a direct bearing on commercial value and rates. However, in peripheral areas like the Outer Ring Road, Whitefield and also Magadi Road where the Government is planning an IT-BT corridor, the increase in FAR is likely to stabilise the rates.
IT and ITeS companies continue to dominate all major commercial space transactions. The existing private information technology parks have begun to add new blocks in their campuses to cater to the rising demand. The commercial realty prospects in Bangalore continue to remain strong.