Bangalore Economy and Real Estate thread II

[MeMumbaikar]

^
dude its not metro

this report takes into account of the data in late 2008 to 2009. It was due to the stock market falling and the mumbai attacks (Mov 2008)

You seem to think that the metro solves all the issues of a city. Thats just not true.


you need metro +road infra for bus etc

[gentem]

metro adds glamour to a city while locals add negative glamour

bangalore wants metro for show off, not for traffic jams to leisure travel on weekends, not to go to work daily

[MeMumbaikar]

Originally Posted by gentem

metro adds glamour to a city while locals add negative glamour

bangalore wants metro for show off, not for traffic jams to leisure travel on weekends, not to go to work daily

dude your kidding yourself if you think metro is the key criteria in a ranking.

Read through the Mercer report

There are other factors like crime, strength of economy etc, ,metro will form a small part of it under public transport systems.

this is the lead report

http://www.mercer.com/articles/quali...ey-report-2010


you can also D load a pdf from the link above which explains the benchmarks in detail.

[gentem]

http://www.mercer.com/knowledgecente...ontent=1293140
The total index is based on the following categories:

* Consumer goods
* Economic environment
* Housing
* Medical and health considerations
* Natural environment
* Political and social environment
* Public services and transport
* Recreation
* Schools and education
* Socio-cultural environment

even access to recreation is better with rapid transit, also natural environment with less noise pollution. metro is enough to change ranking from 145 to 140

[MeMumbaikar]

Originally Posted by gentem

http://www.mercer.com/knowledgecente...ontent=1293140
The total index is based on the following categories:

* Consumer goods
* Economic environment
* Housing
* Medical and health considerations
* Natural environment
* Political and social environment
* Public services and transport
* Recreation
* Schools and education
* Socio-cultural environment

even access to recreation is better with rapid transit, also natural environment with less noise pollution. metro is enough to change ranking from 145 to 140

nope it wont make that big a difference.

Look at your own list, public transport is one of the 10 areas. So metro contributes to alleviating 1/10th of the total rank.


Within Public Services and Transport having drinking water 24/7 and electricity 24/7 rank higher than public transport. As these are basic amenities.


Secondly Bangalore was 140 in 2008 142in 2009 and jumped rank to 140 in 2010. Its actual marks remained constant at 64.5

As you can see the rank listed in Mercer 2008- 2009 list in the PDF document listed below


http://www.livemint.com/2009/04/2900...9658ArtVPF.pdf

the lead article

http://www.livemint.com/2009/04/2900...an-cities.html




So one is more likely to jump up the ranking by providing 24/7 electricity and water than building a metro. This is true for almost all Indian and south asian cities.

[MeMumbaikar]

Infact talking about infrastructure in general according to the Mercer Report 2009

http://www.livemint.com/2009/04/2900...DC4CArtVPF.pdf

[MeMumbaikar]

and the Marks for the Indian cities in 2010 Mercer Index are on a score of 100 for New York City

Bangaluru 64.9

Delhi 63.8

Mumbai 63.6

Chennai 62



A difference of 2-3 marks does not make an iota of change. So in practical terms all 4 cities are virtually ranked similarly. The difference between Chennai and Bangalore for eg is about 3%. that is virtually negligible.

Infact the top 20 cities in that index are virtually equal on quality of life and it varies very very less.



Rather than rank, personally i would like to improve my overall mark

[gentem]

Office space rentals in Makati, Philippines seen to go up
Friday, 26 November 2010 09:10 AM Joel Ferreras

Tholons listed Makati at 6th place among the Top 8 Global Outsourcing Cities of the world. The city is also the top global outsourcing destination in the Philippines. India's Bangalore topped the list.

Other Indian cities, like Chennai, Delhi NCR, Hyderabad, Mumbai and Pune graced the list, while the city of Dublin in Ireland is the only non-Asian city in the said ranking.
http://thepoc.net/breaking-news/brea...-to-go-up.html

[gentem]

Political instability in state dents brand B'lore
Mahesh Kulkarni / Chennai/ Bangalore November 27, 2010, 0:55 IST

The political instability and poor governance in the state has dealt a blow to brand Bangalore and has affected it as an investment destination. The state has been rocked by scandals, corruption charges and land scams involving no less than its chief minister B S Yeddyurappa.

Though the ruling Bharatiya Janata Party (BJP) rode to power for the first time in the state and south India after the 2008 legislative assembly elections on development plank, with high hopes and promises galore, stability has been eluding the state, as Yeddyurappa had been battling to ensure his government’s continuation due to lack of clear majority.

In the 225-member assembly, the BJP secured only 110 seats, three short of the half-way majority (113), forcing it to seek the support of five independents to survive the first floor test in June 2008.

Being wary of its slender majority, the ruling party spent most of its time and resources in ensuring the survival of its government by launching ‘Operation Lotus’ to wean away legislators from rival parties and make them to contest on its ticket for a clear majority.

Lack of experience in administration and rampant factionalism in the party have been a bane of the 31-month-old government, leaving little time for Yeddyurappa to focus on socio-economic development and infrastructure growth.

Like many other states, the global recession and slow down in the Indian economy had a cascading effect on the state’s gross domestic product (SGDP) and tax collections, as manufacturing and services sectors suffered for want of business and fresh investments. The SGDP grew by 5.5 per cent to Rs1,89,773 crore for the year 2009-10, as against Rs1,79,809 crore. The state’s tax revenues were up by 6 per cent at Rs29,339 crore compared to the previous year. However, they were down by 10 per cent compared to the budget estimates of Rs32,721 crore for the year.

However, the state, which is still holding on to its numero uno status in the IT exports showed a dismal growth in the year 2009-10, by exporting Rs76,000 crore worth of software, a mere 1.5 per cent growth over the previous year.

Ironically, the state and its capital Bangalore, which earned the sobriquet of being India’s tech hub, are in the news at the national and international levels for all the wrong reasons due to leadership crisis bedevilling the government, with Yeddyurappa becoming a target of the opposition as well as detractors in the ruling party. http://www.business-standard.com/ind...5Clore/416272/

tale of a govt. this governor and lokayuktha needs to be replaced for smooth functioning of govt.

good news for bangalore soon: grade separator at puttenahalli, nayandahalli, kadirenahalli, agara/sarjapur open already. and yes, metro.

[MeMumbaikar]

oh please

I would not read too much into political instability denting brand banagalore.


Brand Bnagalore was built by the people offf Bangalore despite the government and not because off it.


These media shit heads will publish anything


Bangalore is doing just fine. Just continue along the same path

[ChennaiIndian]

That is right. Moreover, the people who have invested in the millions there would ensure that their investments don't go down the drain. So, they will drive developments.

[arunpr]

Originally Posted by gentem

Political instability in state dents brand B'lore
Mahesh Kulkarni / Chennai/ Bangalore November 27, 2010, 0:55 IST

tale of a govt. this governor and lokayuktha needs to be replaced for smooth functioning of govt.

good news for bangalore soon: grade separator at puttenahalli, nayandahalli, kadirenahalli, agara/sarjapur open already. and yes, metro.

thanks to governor and lokayuktha for exposing all the corruption by politicians like Yediyurappa, Katta and other business lobbies !!!

[thewanderer]

Bangalore, Dec 2 (IANS) Karnataka has launched road shows and publicity campaigns in several European countries to market the state as an investment and tourism destination.

The marketing effort is led by state Tourism and Infrastructure Development Minister G. Janardhan Reddy, who is in Europe with a 10-member team, his office said in a press release here Thursday.

...

Source

[cofee]

Manila (Philippines) Beats Bangalore in $21 Billion Call-Center
Race

For the past decade, Americans dialing customer service stood a strong chance of being connected to someone in India. Now they’re more likely to end up phoning the Philippines.

Strong government support, a supply of English-speaking college graduates havehelped the Philippines overtake India in call-center revenue, Bloomberg reports.

“It’s not that we are trying to take business away from India,” said Oscar Sañez,CEO of the Business Processing Association of the Philippines. “We’re just looking for our own place in the sun.”

The Philippines will earn $5.7 billion for call-center work this year from the U.S.,Europe and Australia, compared with the $5.5 billion generated by India, according to the Everest Group, a Dallas-based outsourcing advisory firm working with the

Philippines industry. The two hubs account for about half of the $21 billion global industry, according to Everest data.

Call-center operators said they like the Philippines because English is taught in schools and Filipinos have a cultural affinity for the U.S., which ruled the country from 1898 to 1946.


“Clearly, these guys had a much later start, but they have caught up,”
Everest Group partner Nikhil Rajpal said.

The outsourcing industry now employs 530,000 people in the Philippines, and makes up about 6 percent of gross domestic product, according to data compiled by Bloomberg.

Tax Breaks

Frustrated government officials looked to India for inspiration, said Celeste
Ilagan, who spent the past decade working in government programs to encourage outsourcing.

“India had become very famous for call centers, and we decided to learn from their example,” she said.

To better understand India’s success, Filipino officials visited industry
representatives there.

The Filipino government streamlined the approval process for companies setting up call centers and changed its rules to allow individual buildings to be designated special economic zones,according to the Philippines Economic Zone Authority.

Such zones offer tax breaks, quick clearances for building permits and an exemption from import duties on computers and telecommunications equipment.

About 40,000 students have benefited from government-Sponsored training to improve their English and communication skills.

Call centers are changing the rhythms of Filipino life. Malls, bars, cinemas and cafés have popped up near buildings where young, nocturnal workers earn as much as 300,000 pesos ($6,850) a year according to data compiled by Bloomberg.


Several companies now operating in the Philippines participated in India’s outsourcing revolution 5-10 years ago but then moved to Manila as tax break for Indianoutsourcing shops is set to expire in 2011.


In Bangalore and Gurgaon, India’s biggest outsourcing hubs, companies rely on diesel generators to ensure electricity, run fleets of buses to ferry employees to and from work, and struggle with attrition that can reach 50 percent a year. Those challenges, as well as a desire to diversify geographically, have spurred operators to shift work to the Philippines.


Wipro Ltd., based in Bangalore, India, set up in the Philippine city of Cebu in 2007 and now has 2,000 workers in the country. By 2014, it expects to have 8,000.

24/7 Customer, which started operations in India in 2000, opened a Philippines office in 2005. It now has 4,000 employees in the country, compared with 3,000 in India.

Tata Consultancy Services Ltd., India’s largest software services firm, said Dec. 2 it would open a business processing outsourcing center in the Philippines.

Doubling Revenue

“It’s very sad that India could not keep up with its neighbors,” 24/7 co-ounder Shanmugam Nagarajan said.

The Philippines outsourcing industry has set a goal of at least doubling revenue by 2015.

Steve Barker, who heads Asian operations for Sitel Worldwide Corp., a Nashville, Tennessee-based company that has 10,000 workers and seven facilities in the Philippines.

“Ten years down the line, the Philippines may be a hotter destination,” said Sanjeev Bhatia, who oversees international operations for Wipro BPO.

[chennaidesi]

This is a problem not for Bangalore only but for whole of India.

Govt should do something like give tax breaks for BPO companies if it is set up in Tier 2 or Tier 3 cities by that way we can develop Tier 2 cities as well as get more outsourcing to India.

Media's sometimes discovers this sort of thing like 'cultural affinity' etc based on current state of events.

[gentem]

its ok.. vasudhaiva kutumbakam it is value addition for humanity if bpo jobs spread over time zones.. dublin in ireland is there

[gentem]

SIGNAL-FREE NH7 WILL FUEL DEVELOPMENT IN VICINITY
The upgradation of NH7 will entail development along the route to the airport, says Deepti Ganapathy

The NH 7 which also serves as an important link to the international airport is in the process of being upgraded to a six-lane signal-free expressway. When completed by 2013, it will mean great connectivity to the proposed Karnataka Industrial Area Development Board's Hardware Park, Aerospace Park, and the Information Technology Investment Region (ITIR) etc. The highway will also give a push to residential development in the vicinity. Localities around Yelahanka, Jalahalli, Doddaballapur Road, along with the Bangalore Development Authority's proposed Dr Shivaram Karanth Layout are some of the areas that will benefit from better connectivity.
"Clearly, the presence of the proposed aerospace SEZ near Devanahalli and also the IT and financial services zone is going to give a different growth trajectory to the area," says Aroon Raman, Chairman, CII Karnataka State Council. "Land prices have shot up in anticipation of this growth and I am certain that the areas beyond Devanahalli will attract industries to establish positions close to the airport. The high speed rail line, if it becomes a reality, will also give a boost to connectivity in the region," asserts Raman.
A report by McKinsey Global Institute says that India will have 68 cities by 2030 with a population of over one million, 13 cities with more than four million people, and six megacities with population of 10 million or more.
As many as 590 million people will be living in cities in India. In 2030, India's largest cities will be bigger than many major countries in both population and economic output. The McKinsey report also says that cities will generate 70 percent of new jobs, more than 70 percent of India's GDP, 85 percent of the tax revenue that will finance development, and drive a four-fold increase in per capita income.
Realty on upswing
In addition, the study projects that by 2030, 700-900 million square meters of commercial and residential space needs to be built, 2.5 billion square meters of roads will have to be paved and 7,400 km of metros and subways will need to be constructed (both, as the study highlights is 20 times the capacity added in the past decade).
"NH 7 is currently the primary access point for Bangalore International Airport. Due to focus on infrastructure in that part of town, it is a good location for development of integrated projects. Already we are witnessing a spurt in commercial activity around Hebbal (the junction of Outer Ring Road and NH-7) and residential activity in Yelahanka which is a suburb about six km from Hebbal towards the airport," says Anshuman Magazine, Chairman and MD, CB Richard Ellis, South Asia Pvt. Ltd.
"Currently, all the development around and beyond the airport has been high-end residential gated projects, plots, and villa and golf course developments. The corporate activity is yet to happen as developers are in the process of land consolidation to develop mixed use projects and SEZ parks," adds Anshuman Magazine.
Potential for development
"The potential for development is good on both the sides of the highway to Devanahalli. However, one needs to be careful of the zoning and development regulations applicable to the property and the property titles while selecting a location," cautions Anshuman.
According to research and advisory firm, Cushman and Wakefield, residential demand in the country would be over 7.5 million units by 2013. The residential demand for top seven cities is estimated to be 4.5 million units by 2013.
An integrated township comprises residential and ancillary facilities such as school, hospital, hotel and retail. In new integrated townships, planners are looking at solutions to increasing pressure on existing urban infrastructure and rapid urbanisation. With the government permitting FDI up to 100 percent for development of integrated townships, including housing, commercial premises, hotels, resorts, city and regional level urban infrastructure facilities such as roads and bridges, mass rapid transit systems and manufacture of building materials, development of land and providing allied infrastructure will form an integral part of township development.
"Over the next 12 months we expect to see a much greater divergence in real estate activity and performance," cites Jones Lang LaSalle, India in its report on the outlook of global real estate for 2011. "Asia Pacific will be leading the real estate upswing and the domestic corporate sector will come to the fore, particularly in India and China," says the report.
http://epaper.timesofindia.com/Defau...Mode=HTML&GZ=T

[gentem]

Commercial realty recovers on IT demand
IBM, HP, Accenture, Wipro, Cognizant Taking Up Large Office Spaces
Shilpa Phadnis | TNN

Bangalore: Riding on the rapid recovery from recession, many large firms are signing up big-ticket commercial real estate deals in different parts of Bangalore.
Industry sources say that Accenture has committed to take 8 lakh sqft in Pritech Park on the Outer Ring Road (between Marathalli and Sarjapur Road). HP and Wipro are said to have recently taken 2.5 lakh sqft and 1.2 lakh sqft respectively in Pritech.
The east and south of the city have been the traditional IT belt, but now the north too is buzzing. IBM, Cognizant, Accenture and HP will be renting space in the second phase of Manyata Embassy Business Park near Hebbal.
Sources in the industry say that IBM has committed to 5 lakh sqft of office space in Manyata phase II. The Big Blue has already occupied 3 lakh sqft in the first phase of the park.
"There is a lot of demand from our existing IT clients," Embassy Group CEO Gopi Krishnan said. The IT sector, he said, continues to expand at the highest rate in Bangalore. "In 2007, we signed an agreement with IBM to deliver 2 million sqft of space over the next four years," Krishnan said.
The IBM portfolio is so huge that it contributes 33% to Embassy's rental revenues. Other companies like Cognizant and Target are also looking at Manyata as part of their expansion plans. Embassy is developing an additional 9 mn sqft in Manyata.
Real estate consultancy CBRE estimates that Bangalore has seen an absorption of 6.8 mn sqft of office space this year. That's up from the absorption of 5 mn sqft in 2009, but still lower than the peak of about 10 mn sqft in 2008. "As companies are expanding and consolidating their operations, we see the demand for commercial real estate going up," said CBRE deputy MD (south India) Ram Chandnani.
The majority of the expansion is expected to come up along the Outer Ring Road, and the micro markets of Whitefield, Jayanagar, JP Nagar, Bannerghatta Road and north Bangalore. "The buoyancy in the market is also reflected in the rentals. For instance, rentals on Outer Ring Road have stabilized between Rs 40-50 per sqft. In 2009, rentals had fallen sharply," said Kaustuv Roy, executive director of Cushman & Wakefield India.
The pan-India office space demand over the next five years is estimated to be about 240 mn sqft.
Bangalore, NCR and Mumbai are expected to account for 46% of the total demand. Kolkata and Chennai are likely to see higher growth rates though, with suburban locations having attractive price points, according to a Cushman & Wakefield report.

city comparison bangalore tops and how..

total of 3 q's of 2010, mn sqft

bangalore 8.2
mumbai 5.8
delhi ncr 5.0
hyd 3.7
pune 2.8
chennai 2.7
kolkata 0.9
ahmedabad 0.25

hyd and pune are doing better than expeted..

[SSCaddict]

Originally Posted by chennaidesi

This is a problem not for Bangalore only but for whole of India.

Govt should do something like give tax breaks for BPO companies if it is set up in Tier 2 or Tier 3 cities by that way we can develop Tier 2 cities as well as get more outsourcing to India.

Media's sometimes discovers this sort of thing like 'cultural affinity' etc based on current state of events.

i thought the same that india will loose due to lifestyle in urban areas but with more of tier 2 and 3 cities getting BPO and the biggest benefit will be in the next 10yrs in our country that will completely revive the BPO sector will be RURAL BPO....

BTW IBM india will be expanding in tier 2 and 3 cities aggressively in next 5 yrs (source HT)

[engineer.akash]

4 Dec, 2010, 01.06PM IST, Shilpa Phadnis,TNN
Wipro, Cognizant,IBM for big-ticket realty deals

BANGALORE: Riding on the rapid recovery from recession, many large firms are signing up big-ticket commercial real estate deals in different parts of Bangalore.

Industry sources say that Accenture has committed to take 8 lakh sqft in Pritech Park on the Outer Ring Road (between Marathalli and Sarjapur Road). HP and Wipro are said to have recently taken 2.5 lakh sqft and 1.2 lakh sqft respectively in Pritech.

The east and south of the city have been the traditional IT belt, but now the north too is buzzing. IBM, Cognizant, Accenture and HP will be renting space in the second phase of Manyata Embassy Business Park near Hebbal.
Sources in the industry say that IBM has committed to 5 lakh sqft of office space in Manyata phase II. The Big Blue has already occupied 3 lakh sqft in the first phase of the park.

"There is a lot of demand from our existing IT clients," Embassy Group CEO Gopi Krishnan said. The IT sector, he said, continues to expand at the highest rate in Bangalore. "In 2007, we signed an agreement with IBM to deliver 2 million sqft of space over the next four years," Krishnan said.

The IBM portfolio is so huge that it contributes 33% to Embassy's rental revenues. Other companies like Cognizant and Target are also looking at Manyata as part of their expansion plans. Embassy is developing an additional 9 mn sqft in Manyata.

Real estate consultancy CBRE estimates that Bangalore has seen an absorption of 6.8 mn sqft of office space this year. That's up from the absorption of 5 mn sqft in 2009, but still lower than the peak of about 10 mn sqft in 2008. "As companies are expanding and consolidating their operations , we see the demand for commercial real estate going up," said CBRE deputy MD (south India) Ram Chandnani.

The majority of the expansion is expected to come up along the Outer Ring Road, and the micro markets of Whitefield , Jayanagar, JP Nagar, Bannerghatta Road and north Bangalore. "The buoyancy in the market is also reflected in the rentals. For instance, rentals on Outer Ring Road have stabilized between Rs 40-50 per sqft. In 2009, rentals had fallen sharply," said Kaustuv Roy, executive director of Cushman & Wakefield India .

The pan-India office space demand over the next five years is estimated to be about 240 mn sqft.

Bangalore, NCR and Mumbai are expected to account for 46% of the total demand. Kolkata and Chennai are likely to see higher growth rates though, with suburban locations having attractive price points, according to a Cushman & Wakefield report.

ET