1. Bangalore:
Whitefield and
IT/ITeS Growth
Electronics City Corridor Series December 2010
A Strategic Advisory Group Report

2. Office Space 2010 & Beyond*
25.6 of
million sqft Varathur Lake Junction
operational spaces including
3.6 million sqft in SEZ
5.1 sqft under
million
construction of which
2.2 million sqft in SEZ
Hoodi Circle
10
million sqft
Whitefield
vacant space and
no availability in SEZ
20.6
million sqft
planned supply including
17.1 million sqft in SEZ
d
oa
rR
su
Ho
K. R. Puram Junction
8.2
million sqft of
Electronics City Junction operational space
and none under SEZ
Electronics City 3.3 sqft
million
vacant space
3.4 4.3 sqft of
million sqft of million
under construction planned supply
and none under SEZ of which 3.5
million sqft. in SEZ
* For Non-Captive spaces only
2

3. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Executive Summary
Bangalore’s growth story as Silicon Valley of India is However, this planned space quantum could drop
synonymous with the emergence of Electronics City subject to re-consideration of developers over the
and Whitefield as IT hubs in Bangalore. IT space notified SEZ parks, reason being the shift in the
development in Electronics City gathered traction occupier’s preference to ORR and Bangalore North. In
since mid 1990s and Whitefield emerged as an IT hub comparison, Electronics City region also has one
in late 1990s. Though contemporary, both these planned IT/ITeS SEZ.
micro-markets are well differentiated in develop-
Till Q3 2010, Whitefield and Electronics City micro-
ment ownership, type of occupiers, development
markets registered annual office space absorption of
characteristics and social and business infrastructure.
1.7 million sqft and 0.46 million sqft respectively.
Over the last one decade, Whitefield has developed In both the micro-markets, 80% of the absorption is
as a self sustaining suburban area with development driven by expansion of existing operations or new set-
of residential projects, modern format retail malls, ups; only balance 20% supported relocation and
hotels and other social infrastructure. In comparison, consolidation of operations.
Electronics City still continues to remain an economic
During last few quarters, office space rentals have
hub.
firmed-up for Grade A (Premium) & Grade A buildings
Whitefield has almost 3 times of the non-captive IT in both the micro-markets on account of increased
operational space as compared to Electronics City (25 leasing activity. But, rental levels for Grade B+
million sqft versus 8.2 million sqft). However, under buildings are still sensitive due to high vacant stock. In
captive office space category Electronics City leads Whitefield, rentals for SEZ space are likely to
with 14 million sqft to that 7.9 million sqft of strengthen on account of high demand and low
Whitefield. vacancy levels.
Since 2007, Whitefield has been consistently Whitefield is dominated by MNCs operating in IT &
witnessing high vacancy levels. As of Q3 2010, ITeS sectors. In comparison, Electronics City has 65%
vacancy levels for non-captive office space are 10 of the space occupied by Indian origin companies and
million sqft in Whitefield and 3.3 million sqft in 39% of the companies operating in non-IT /ITeS
Electronics City. The high vacancy level is registered sector-Biotechnology, Electronics and Engineering
primarily in Grade B+ buildings, which are 5 million Services.
sqft in Whitefield and 2 million sqft in Electronics City.
Overall, growth rates in these micro-markets are
Currently, Whitefield has three operational IT/ITeS slowing down on account of rise of alternate micro-
non-captive SEZs (3.6 million sqft) whereas, markets (ORR and Bangalore North). Never the less,
Electronics City has only captive SEZs. In Whitefield, cost benefits, existing tenancy profile and proximity
another 2.2 million sqft is under construction and to talent pool are still strong enough to support the
17.1 million sqft is planned in SEZ category. annual absorption at current levels at least in the
short term.
3

4. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Figure 1: IT Hubs of Bangalore - Whitefield and Electronics City
Bangalore International Airport
NH 7: To Hyderabad
Proposed Peripheral
Ring Road
NH 4: To Chennai
Hebbal
Yeshwantpur
KR Puram
C V Raman Nagar Whitefield
AECS Layout
CBD Indiranagar
Brookefield
Old Airport Road
Marathahalli
Varthur Road
Koramangala
Outer Ring Road Silk Board Jn. HSR Layout
BTM Layout Sarjapur
SH 17: To Mysore Haralur
Bannerghatta Hosur Road
Road
NICE Ring Road
Electronics City
NH 209: To
Kanakpura
NH 7: To Hosur
Residential clusters in proximity of Whitefield Micro-markets of Whitefield and Electronics City
and Electronics City
Key Secondary IT Hubs
4

5. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Promotion of Electronics City and Whitefield Karnataka State Electronics Development
EPIP Zone were key initiatives of the State Gov-
Corporation Limited (KEONICS)
ernment of Karnataka to transform Bangalore
City into a Silicon Valley of India KEONICS was established in 1976 with the main
objective of promoting electronics related industries
Electronics City in Karnataka. The Electronics City industrial park
(Phase I) was a concept developed and implemented
• Electronics City, a 580 acre electronics industrial
by KEONICS with support from KIADB.
park is located along Bangalore – Hosur Road. The
main objective of the development was promotion of Karnataka Industrial Areas Development
electronics and IT/ITeS companies in the region. Board (KIADB)
• Electronics City has been developed in 3 phases. KIADB is a wholly owned infrastructure agency of
The Phase 1 (332 acres), commissioned in 1978, was Government of Karnataka with the primary objective
jointly developed by Government bodies – Karnataka to promote growth and development of industries in
Industrial Area Development Board (KIADB) and the state.
Karnataka State Electronics Development
Primary functions include acquiring land, forming
Corporation Limited (KEONICS). Whereas, Phase 2
industrial areas and providing basic infrastructure.
(148 acres) and Phase 3 (100 acres), commissioned in
The agency is also responsible for acquiring land for
2003, were developed by KIADB.
Single Unit Complexes and infrastructure projects.
• Post 1997, the entire maintenance and up-keeping
of Electronics City was handed over to Electronics City ** Note: International Tech Park Bangalore (ITPB) was established in
Industries Association (ELCIA), a professionally 1998. This iconic business park located on Whitefield main road is
managed organization formed by the industry spread over a 28 hectare estate. It was a joint venture between the
Tata Group, Ascendas Group (Singapore) and KIADB. Currently
members of Electronics City. managed by Ascendas, the park provides state of the art facilities to
more than 145 companies who provide services including Software
• In Phase 1, mainly land parcels were allotted to development, R&D and ITeS related activities.
companies operating in electronics and IT/ITeS
sectors; in Phase 2 land parcels were also allotted to
few biotechnology companies whereas Phase 3 has
been allocated for biotechnology companies only.
• Key companies operating in this region include
Infosys, Wipro, HP, HCL, Siemens, TCS and others.
Whitefield EPIP Zone
• KIADB developed Export Promotion Industrial Park
(EPIP) Zone (500 acres) in Whitefield in 1994 to
promote export related industries. This initiative
catalyzed economic development in this region.
• Existing old industrial area, availability of land,
connectivity to city centre and proximity to old
airport were the main reasons to establish the EPIP
Zone in this part of the city.
• Further, development of International Technology
Park Bangalore** (ITPB), placed Whitefield on a
global map.
• Key Companies operating in this micro-market
include GE (John F Welch Technology Center), TCS,
Oracle, IGate, SAP Labs, L&T and others.
5

6. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Figure 2: Whitefield & Electronics City - Emergence as IT Growth Hubs
Electronics City Commissioning of Wipro, HP, HCL campus
2000
1990
1991 Set-up of STPI
unit in KSSIDC
complex 1999 Commissioning of
IIT Campus
1992 Formation
1978 of ELCIA
Commissioning 2003 Commissioning of
of Phase I Phase II & III
1994 Infosys
moves
1982 First allotment corporate
of land to ITI HQ to
(60 acres) Electronics
and NTTF City
(10 acres) from Pune.
1978 1980 1990 2000 2010
Commissioning of IGATE
2004 Global Solutions campus
Commissioning of KTPO
2003 Convention Centre
Commissioning of Perot
2001 Systems (Dell) campus
Commissioning of John
F. Welch Technology
2000 Center (GE)
Commissioning of ITPB
1998 and SAP Labs campus
Whitefield and EPIP Zone 1994
Formation of EPIP Zone
Table 1: Whitefield & Electronics City - Fact Sheet
Attribute Electronics City Whitefield
Distance Chart
18 16
CBD (km)
Bangalore International Airport (BIA)
56 45
(km)
Land Availability
Phase I: Not Available
KIADB Allotment: Not Available
Availability of land for IT development Phase II: Limited
Private: Available
Phase III: Limited (For Biotech Industries)
Zoning and Regulatory Attributes (As per Revised Master Plan 2015)
Main Land-use Industrial (Hi-Tech Zone) Industrial (Hi-Tech Zone)
Permissible FSI 2.0 - 3.25 (Industrial - Hi Tech Zone) 2.0 - 3.25 (Industrial - Hi Tech Zone)
Whitefield Main Road,
Mutation Corridor** Plots facing NH 7 ITPB Main Road,
Varthur Main Road
Note: ** Mutation Corridor: As per revised Bangalore Master Plan 2007, plots with frontage equal to or more than 12 m are eligible for conversion of land-use to
'commercial' and the permissible FSI being in the range of 2.75 to 3.25 (depending on the plot size, frontage and abutting road width). In addition to the frontage,
the entry and exit to the plot should be provided along the mutation corridor.
6

7. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Whitefield has emerged as a self sustained suburban area whereas, Electronics City is not.
• Electronics City is surrounded by green zone
(protected land) and industrial area (Bommasandra &
Jigani). Therefore, this micro-market has limited land
availability for development of sustainable support
infrastructure.
• In comparison, Whitefield is surrounded by
residential and industrial zone and has potential for
future development. Further, growth in Whitefield is
enhanced due to its connectivity with city through
two major roads - Old Madras Road and Old Airport
ŸOn the other hand, in Whitefield region, promi-
Road whereas Hosur Road forms the primary access
nent developers including Prestige, Adarsh, Sobha,
to Electronics City.
Brigade and others have existing and upcoming
Ÿ Electronics City micro-market has good business residential developments. This micro- market has
infrastructure with 12 hotels operational in two & well developed social infrastructure including retail
above star category. However, lacks in social malls, entertainment options, schools, etc.
infrastructure developments - Grade A residential
ŸFurther, public transportation facility in Whitefield
developments, retail, entertainment and educational is better than in Electronics City in terms of fre-
institutes. quency and connectivity.
Table 2: Whitefield & Electronics City- Business & Social Infrastructure
Attribute Electronics City Whitefield
Keys Hotel (Budget class)
Hosur Road Manipal County (Resort)
Taj Vivanta (5 star)
Renaissance Sarovar Hotel (4 star)
Royal Orchid Suites (Business Hotel)
Amethyst Central, Amethyst Villas and Ginger Hotel (Modern format budget
Existing Hotels Amethyst Apartments (Serviced Hotel)
Apartment), Savannah Sarovar Premiere (5 star)
Electronics City Lemon Tree (4 star), Zuri (5 star)
E-Inn (5 star-Business class), Sai Paryavaran (Serviced Apartments)
Crowne Plaza (5 star)
Svenska Hotel (5 star),
Lords Plaza (4 star),
Novotel IBIS Hotel (5 star) Berggruen Hotel (5 star)
Hosur Road Bonney Hotels (5 star) Chalukya Hotel (5 star)
Confident Olive (5 star) RSJ Constructions (2 star)
Upcoming Hotels (Till 2012)
Radisson (5 star)
(Under-construction/
Starlet Smondo Suites Forum Value Mall (Services Apartments)
Planned) The Courtyard - K.Raheja Group (5 star)
Electronics City (Serviced Apartments)
Perk-Inn (5 star) Synergy Constructions
Shangri La Hotel (4 star)
Hosur Road Nil Cosmos Mall
Big Bazaar
Existing Retail Malls
Hypercity
Electronics City Nil Forum Value Mall
Hosur Road Independent Developers Phoenix Market City
Upcoming Retail Malls Park Square
(Under-construction/ City Neo Mall (Strip Mall) Forum Mall
Planned) Electronics City Inorbit Mall-K Raheja Group
Perk-Inn (E-city Phase 2)
Synergy Constructions
7

8. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
On the urban infrastructure front, both micro-
markets can learn from their global counter
parts.
• The urban infrastructure across both the micro-
markets including roads, footpaths, walk bridges,
signage etc is not in par with infrastructure offered in
other global economic hubs.
• Electronics City is a close-knit designed park with
ELCIA managed surveillance services, traffic manage-
ment & common amenities. Thus, giving a common
infrastructure and a sense of belonging to an eco-
nomic hub, the same is not true for Whitefield.
Travel time between Electronics City and
Bangalore City has reduced with the commis-
sioning of the Electronics City Elevated
Express Way, NICE Ring Road and widening of
Hosur Road in 2009 & 2010; however,
approach roads to Whitefield continue to face
traffic congestion at major road junctions.
• Whitefield can expect significant improvement in
travel time only post 2015, after completion of
planned Bangalore Metro Rail project Phase 3 and
proposed Peripheral Ring Road (PRR) Phase 1.
• Bangalore Metro Rail Phase 3 is planned to connect
Whitefield and Electronics City. Currently, BMRCL is
working on the detailed project report and alignment
for the phase 3 would be finalized in short term.
• The proposed PRR Phase 1 will connect Electronics
City, Whitefield, Old Madras Road and Bellary Road
(Bangalore International Airport). Currently, BDA is
working on the road alignment and land acquisition.
8

9. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Over the last decade, Whitefield and Electronics City office space micro-markets extended beyond
EPIP Zone and KEONICS & KIADB designated Electronics City .
• Whitefield micro-market includes EPIP Zone and
areas enclosed between KR Puram Junction along
Outer Ring Road (ORR) to Hope-farm Junction via
Hoodi Cirlce; Hope-farm Junction to Varthur Lake
• Electronics City micro-market includes 3 phases of Junction covering the Whitefield Road; Varthur Lake
Electronics City and the stretch of Hosur Road from Junction to Marathahalli Junction via Kundanahalli
Silk Board Junction to Hebbagodi. For the study Junction and Kundanahalli Junction to Hoodi Circle
purpose, Patel Realty’s integrated township project covering ITPB Main Road. Also, for this study Beary’s
Neo Town and HCL Technologies Campus in Jigani Global Research Triangle in Hoskote has been
are included in this mirco-market. included.
9

10. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Figure 3: Whitefield –IT Growth Hub
To Hoskote
KR Puram Junction N
To Old Madras Road 1
2 Kadugodi 48
B Narayanapura 4 Industrial Area
Garudachar palya 5
Hoodi Circle 6 Kaugodi Colony
Mahadevapura 3 7 8
Mahadevapura
Industrial Estate 10
Hoodi 939 42
40 43
43
12 38 41 Hope Farm Jn.
13 11 37
IFB Automative 14 44
15 16 17
Ambedkar
21 20 18 Nagar
Graphite India 19 36
30 31
22 29 35
23 26 27 28 34
24 25 Dodsworth Layout
33
32 Brookefield Hindustan Unilever
AECS Layout Limited 45
Forum Value
To M. G. Road Mall
Hyper City 46
47
Marathahalli Jn. Varthur Lake Jn.
Kundanahalli Jn.
To Varthur
Non - captive Spaces Captive Spaces
Operational SEZ spaces Operational Non-SEZ spaces Existing Malls / Hyper-markets
Operational Non-SEZ spaces Upcoming Malls
Under-construction Non-SEZ spaces Existing Hotels/ Serviced Apartments
Planned SEZ spaces Upcoming Hotels/ Serviced Apartments
Planned Non-SEZ spaces Residential Locations
KTPO Convention Centre
1 HP Campus 17 SJR iPark 33 Divyasree Tech Park (SEZ)
2 Tata Xylem 18 Shailendra Tech Park 34 John F. Welch Technology Centre
3 Brigade Metropolis 19 Neil Rao Towers 35 Tesco campus
4 Bhoruka IT Park 20 SAP Labs 36 TCS campus
5 JanapriyaPride 21 RMZ Nxt 37 First Technology Park
6 Tata Elxsi 22 RMZ Centennial 38 Fortune Softech Park
7 Prestige Shantiniketan 23 Infinite Computer Solution campus 39 Subramanya Tech Park
8 UmiyaSuntech 24 GVR Tech Park 40 ITPB
9 DivyasreeNREnclave 25 Kalyani Platina 41 ITPB (SEZ)
10 Embassy Crest 26 iGate Global Solution campus 42 Brigade Tech Park
11 B. Raheja Whitefield Palms 27 Adarsh Eco Place 43 Salarpuria GR Tech Park
12 Gopalan Global Axis (SEZ) 28 Netra Tech Park 44 HM Tech Park
13 Windmills of your mind 29 Mfar Silverline Tech Park 45 Hindustan Unilever R&D Centre
14 Renaissance First Face 30 Dell (formerly Perot systems) campus 46 Sigma Soft Tech Park
15 Prestige Featherlite TechPark 31 GE 47 Embassy Paragon
16 L&T Infotechcampus 32 Sobha Renaissance campus 48 Bearys Global Research Triangle
10

11. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Figure 4: Electronics City-IT Growth Hub
2 1 To Bangalore N
42
3
8 41
4 40
9
7
6 5
EC2
39
35 36
10 34
11
EC1
37
EC3 12 13 14 38
15
Bio Technology Park 20 16
18
19
17
21
33 22
32 22
27 23
26 24
Neeladri Road
31 25
28
30 29 To Hosur (NH7)
Non - captive Spaces Captive Spaces Residential Locations
Operational Non-SEZ spaces Operational Non-SEZ spaces Upcoming Malls
Under-construction Non-SEZ spaces Existing Hotels/ Serviced Apartments
Operational-SEZ spaces
Upcoming Hotels/ Serviced Apartments
ELCIA
1 Xsysys Technologies 15 Surya Sapphire (HCL) 29 V.com
2 Venkatadhri IT City 16 HCL Technologies 30 Harita IT Park
3 HP 17 CGI 31 Wipro
4 Synova 18 NCST CDAC 32 Majestic Towers
5 Infosys 19 Hiranandani Upscale 33 Omni Systems
6 Yokogawa 20 United Telecom 34 Aishwarya Hitech Park
7 VelankaniIT Park 21 SVR Fortune 35 Confident Octanes
8 Salarpuria Infozone 22 Venkateshwara Techno Park 36 Global Tech Park
9 SJR Equinox 23 Genpact 37 Semicon Park
10 Surya Wave (HP) 24 Parthik Tech Park 38 Sri Ranga IT Park
11 Equinox (Wellman Fargo) 25 Surya I (HP) 39
32 TCS
12 Siemens 26 Cyber Park 40 Mahindra Satyam
13 Prestige Alecto 27 STPI Units 41 Q-Four
14 JPIT Park 28 FortuneTech Park 42 Fidelity
11

12. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Figure 5: Hosur Road - IT Growth Hub
To Jayanagar. Silk Board Jn. To ORR (Sarjapur) N
BTM
Layout 1 HSR Layout
Bommanahalli
3
2
4
7
5 8
6
Devarachikanahalli
9 10
Kudlu Gate
11
HAL Layout
Akshayanagara
NICE Corridor
12
13
14 16
15
To Mysore Road
EC1 EC2
EC3
To Hosur (NH7)
Non - captive Spaces Residential Locations
Operational Non-SEZ spaces Upcoming Malls
Under-construction Non-SEZ spaces
Existing Hotels/ Serviced Apartments
Upcoming Hotels/ Serviced Apartments
1 Maruthi Chambers 7 Chamundi Towers 13 Span Centre
2 Champak Pragathi 8 GNR Building 14 Prestige Alpha
3 ARR Building 9 Ozone Manay Tech Park 15 Commercial Complex
4 Gold Hill Square 10 SSB Tech Park 16 Ahmed Plaza
5 AMR Tech Park 11 AM IT Park
6 AMR Tech Park 12 Salarpuria Symphony
12

13. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Figure 6: Whitefield – Non-captive Office Space Summary
Whitefield and Electronics City micro-markets
account for 45% of Bangalore’s total non-captive IT
sqft. (in millions)
50
operational office space.
40
30
Vestian
25.6
Estimate
20
20.6
15.7
10 5.1
1.0
0
Operational U/C Planned
(2010 - 12) (2012 and beyond)
Total Stock Occupied
• Whitefield has over 25 million sqft operational IT
office space, of which 10 million sqft is vacant; in
Figure 7: Electronics City – Non-captive Office Space Summary
comparison, Electronics City has over 8.2 million sqft. (in millions)
sqft operational IT office space and 3.3 million sqft 14
is vacant. 12
• Persistent high vacancy rate over the last 3 years 10
in Whitefield region for Non-SEZ space resulted in 8
8.2
drop in construction activity. As of Q3 2010, 2.9
6 Vestian
million sqft & 2.2 million sqft of Non- SEZ and SEZ Estimate
4.9
office space respectively is under construction; 4
4.3
3.4
whereas Electronics City has 3.4 million sqft of 2
office space under construction.
0
• Planned supply is pegged at 20.6 million sqft and Operational U/C Planned
(2010 - 12) (2012 and beyond)
4.3 million sqft in Whitefield and Electronics City
respectively. Total Stock Occupied
Table 3: Whitefield & Electronics City – Supply Summary (in million sqft)
Whitefield & EPIP Zone Electronics City & Hosur Road
Space Details
Non SEZ SEZ TOTAL Non SEZ SEZ TOTAL
Non-captive Space
Operational Space 22.0 3.6 25.6 8.2 - 8.2
Under construction Space 2.9 2.2 5.1 3.4 - 3.4
Pre-committed Space - 1.0 1.0 - - -
Vacant Space 9.9 - 9.9 3.3 - 3.3
Planned Space 3.5 17.1 20.6 0.8 3.5 4.3
Captive Space
Existing Captive Office Space (A+B) 10.5 0.2 10.7 13.1 5.1 18.2
Office Space (A) 7.7 0.2 7.9 8.9 5.1 14.0
Manufacturing and other space (B) 2.8 - 2.8 4.2 - 4.2
Planned Captive Space 2.5 1.1 3.6 4.0 1.1 5.1
Source: Vestian Research
13

14. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Both the micro-markets have shown Table 4: Whitefield & Electronics City – Operational
& Under construction Non - captive IT Parks
significant variation in occupancy levels
across different building types. SBA
Micro-location Name of the Park
(million sqft)
International Tech Park,
2.3
Bangalore
• The only Grade A (Premium) Class building – Prestige Shantiniketan 3.1
ITPB located in Whitefield registered 100%
occupancy levels. ITPB has always witnessed high Operational Brigade Summit 0.8
occupancy levels on account of compliance with
DivyaSree Technopark
international standards for building design and Phase I (SEZ)
1.3
park management, superior common amenities
Gopalan Global Axis
and elite tenancy profile. Phase I (SEZ)
1.8
Whitefield
• Operational Grade A buildings across both the Beary's Global Triangle
1.3
micro markets registered 70% occupancy levels. In Phase II & III
Whitefield, the vacancy levels for Grade A GVR Techpark 0.8
buildings have touched 5 million sqft after
commissioning of 3.1 million sqft Prestige Under Gopalan Global Axis
1.0
Shantiniketan Park in Q3, 2010. construction Phase II (SEZ)
DivyaSree Technopark
• But, Grade B+ buildings typically small sized 0.6
Phase II (SEZ)
developments with limited common amenities International Tech Park,
are witnessing high vacancy rates across both the 0.5
Bangalore (SEZ)
micro-markets.
Salarpuria Infozone 0.4
Velankani Technology Park 0.8
Operational
Cyber Park 0.4
Electronics
E-City 0.7
City
Hiranandani Upscale 0.8
Under
Wellman Fargo 0.3
construction
Harita IT Park 0.4
Table 5: Whitefield & Electronics City - Space Distribution
as per Building Type
Total operational Total vacant space Occupancy
Building Type*
space (million sqft) (million sqft) Levels
Grade A
2.8 0.0 100%
(Premium)
Whitefield Grade A 17.0 5.0 70%
Grade B+ 5.8 4.9 16%
Grade A
NA NA NA
Electronics (Premium)
City
Grade A 5.9 1.8 69%
Grade B+ 2.3 1.5 33%
* Note: The developments across Whitefield and Electronics City are classified in three classes – Grade A (Premium), Grade A and Grade B+ based on the reputation of the
developer, common amenities, size of the development, tenancy profile and professionalism in operation and maintenance levels.
14

15. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Whitefield has 20% of Bangalore’s total operational non-captive IT/ITeS SEZ space. It is likely to
retain the same share in short term but is expected to witness a drop in percentage in medium
term.
• Whitefield has 3.6 million sqft of operational
IT/ITeS SEZ space in Divyasree Technopark, Gopalan
Global Axis and ITPB. Another, 2.2 million sqft
IT/ITeS SEZ space is under construction in existing
SEZs.
• Whitefield has potential of additional 17.1 million
sqft of IT/ITeS SEZ office space. Planned non-captive
IT/ITeS SEZ developments include Fortune City (a JV
between Salarpuria and Adarsh), Chaitanya
Infrastructure and Brooke Bond Real Estate Private
Limited.
• In comparison, Electronics City currently has only
captive IT/ITeS SEZs. In future, Patel Realty has plans
to develop a non-captive IT/ITeS SEZ in its integrated
township – Neo Town, Hosur Road.
• Gopalan Biopolis in Whitefield and Biotech SEZ
promoted by KIADB in Electronics City are the
planned biotech SEZs.
Table 6: Whitefield & Electronics City – Non-captive IT/ITeS SEZ Status
Land Area
Micro-market Name of Park Location Status Comments
(acres)
0.64 million sqft (phase II) is
Notified and 1.3 million under-construction with a
DivyaSree Technopark EPIP Zone, Whitefield 73
sqft is operational space total development potential
of ~7 million sqft
Notified with 1.8 million 1.0 million sqft is under-
Gopalan Global Axis Hoodi, Whitefield 26
sqft of operational space construction
Currently, 0.54 million sqft is
Whitefield Notified and has 0.45
International Tech Park, under-construction with a
Whitefield Road 27 million sqft of operational
Bangalore (ITPB) development potential up to
BTS facility
3 million sqft
Chaitnaya Infrastructure Whitefield Main Road 51 Formally approved Planned
Brookebond Real Estate Pvt. ITPB Main Road,
28 Formally approved Planned
Ltd. Whitefield
Fortune City (JV between
Adarsh Group and Sattva Whitefield 38 Formally approved Planned
Group)
Electronics Patel Realty India Ltd Thirupalya
64 Formally approved Planned
City Thirupalya (Electronics City) (Electronics City)
15

16. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
For 2010, expected gross absorption for non-
captive IT office space in Whitefield and
Electronics City micro- markets is 2.3 million
sqft and 0.8 million sqft respectively .
• Till Q3 2010, Whitefield and Electronics City micro-
markets registered annual office space absorption of
1.7 million sqft and 0.46 million sqft respectively. In
both the micro-markets, 80% of the absorption is
driven by expansion of existing operations or new set-
ups; only balance 20% supported relocation and
consolidation of operations.
• Estimated fresh supply for 2010 in Whitefield and
Electronics City is 5.7 million sqft and 1.2 million sqft
respectively.
• Major projects completed in 2010 include Prestige
Shantiniketan (3.1 million sqft) and Kalyani Platina – II
(0.42 million sqft) in Whitefield; and, E City Tower – II
(0.36 million sqft), Confident Octanes (0.15 million
sqft) & SJR Equinox (0.15 million sqft) in Electronics
City.
Table 7: Whitefield & Electronics City – 2010 Key Lease Transactions
Area leased
Location Tenant Name Building Category Type of Space
(sq.ft.)
Infinite Computer Solutions Gopalan Global Axis SEZ 1,00,000 Bare Shell
L&T Infotech Gopalan Global Axis SEZ 1,00,000 Bare Shell
Whitefield
Sonus Networks Prestige Shantiniketan Non SEZ 1,50,000 Fully-furnished
TCS Gopalan Global Axis SEZ 4,00,000 Bare Shell
eMids Technologies Sri Ganesh Complex Non SEZ 40,055 Fully-furnished
Electronics
City & Hosur HP Pratik Tech Park Non SEZ 72,000 Warm Shell
Road
Flextronics SVR Fortuna Non SEZ 90,000 Warm Shell
16

17. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Average office space rentals are comparable for Whitefield and Electronics City micro-markets for
Grade B+ buildings but Grade A buildings in Whitefield command 25% higher rentals compared to
similar buildings located in Electronics City.
• For the last decade, ITPB [Grade A (Premium)] has Table 8: Whitefield & Electronics City – Average Rentals*
been consistently charging 50% higher rentals ( INR/sqft/month )
compared to other Grade A buildings located in
Whitefield & Hosur Electronics
Whitefield. Road City
Building Type EPIP Zone
• Grade A (Premium) and Grade A buildings have SEZ Non SEZ Non SEZ Non SEZ
not only witnessed high occupancy levels but also Grade A
45 45 - -
rentals for the same have been less volatile as (Premium)
compared to other buildings. During the economic Grade A 30 28 - 32 25 - 27 22 - 24
slowdown phase (Q4 2008 – Q4 2009) the rentals
across both the micro markets witnessed drop of Grade B+ - 20 - 22 18 - 22 17 - 20
10%, 20% and 30% for Grade A Premium, Grade A
Note: * For Warm Shell space
and Grade B+ properties respectively.
17

18. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Institutional investors and retail investors • In short term, the capitalization rate is expected to
(HNIs) are capitalizing Grade A buildings at remain at the current levels if not going up further.
11-12% and 9 - 10% respectively. Primarily reason behind modest future is the
prevailing high vacancy rates and investor’s interest
• In recent period, both the micro-markets wit- in other emerging micro-markets.
nessed limited sale activity in office space segment. • Average quoted rates for Grade A building across
The reason is the wide gap between the developer’s both the micro-markets is INR 3800 per sqft. But,
expectation and investor’s expectation. Currently, buildings such as Tata Xylem (LEED Certified),
the institutional investors and retail investors (HNIs) Whitefield and Hiranandani Upscale, Electronics
are capitalizing Grade A buildings at 11% -12% and City are quoting capital rate as high as INR 4,800 per
9%-10% respectively. Grade B+ buildings are capped sqft.
at even higher rates.
Table 9: Whitefield & Electronics City – Average Capital
Values* (INR/sqft)
Institutional Retail (HNI)
Building Developer's
Investor's Investor's
Type Expectation
Expectation Expectation
Grade A 3,800 3,000 – 2,500 3,400 – 2,800
Grade B+ 3,500 2,500 – 2,000 2,750 – 2,250
Note: * For Warm Shell space
18

19. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Table 10: Whitefield & Electronics City – Captive Spaces
In Whitefield, 1/4th of the total operational Approximate
office space is captive whereas in Electronics Name of the
Land Area Remarks
Company
City captive space share is 2/3rd of the total (acres)
operational office space. Whitefield EPIP Zone
GE India John F Welch Technology Centre is
• Whitefield and Electronics City account for 85% of Technology 50 an integrated multi-disciplinary
the total captive IT office space of the city. Centre Pvt. Ltd. research and development centre
• In Electronics City, land allotment to companies
SAP Labs India is SAP's second
led to limited land availability for non-captive largest Research & Development
SAP Labs 22
developments; whereas in Whitefield EPIP Zone, and Global Services & Support
KIADB allotted land to companies but abundant centre in the world
land was available in EPIP and outside EPIP Zone for
non-captive developments. It is global delivery centre and has
I Gate 10
been developed over 3 phases
• In Whitefield, NetApp and Huawei Technologies
are planning to start construction for their captive Tata
Consultancy TCS a IT consulting, services &
units in near future. 3
Services BPO organization
• In addition, Whitefield and Electronics City have NetApp
Currently land has been acquired
15
2.8 million sqft and 4.2 million sqft under manufac-
Huawei
turing and other industrial spaces. 20
1 million sqft of office space is
Technologies
under-construction
Electronics City
The company headquarters is
Infosys 108 located in phase I of Electronics
City
Located in Electronics City
Mahindra Mahindra Satyam development
Figure 8: Whitefield & Electronics City – Captive Spaces Satyam 23 Centre has potential for further
Software development
sqft. (in millions)
25
A drug discovery and biotech
20 5.1 Aurigene company having close to 425
Discovery 17 people working in the campus
15 14 Technologies across Electronics City II
3.6
10 Wipro technologies is located in
7.8 Wipro Limited 13
phase I of Electronics City
5
4.2 Tata
2.8 Think Campus of TCS is located in
0 Consultancy 6
Electronics City
Whitefield Electronics City Services
Operational Space (Manufacturing and engineering companies) Currently, phase I is operational,
HCL however phase II is under-
Operational Space (Office space) 30
Technologies construction
Planned Supply
Source: Vestian Research and Karnataka Industrial Areas Development Board
19

20. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Whitefield is dominated by IT and ITeS companies whereas Electronics City houses sizeable
electronics manufacturing companies also.
• In Whitefield region, 82% of the space is occupied
by IT/ITeS companies. Balance 18% of the space is
occupied by Gems & Jewellery, FMCG,
Biotechnology, Pharmaceutical, multidisciplinary
R&D organizations involved in automobile, aviation,
healthcare, manufacturing and other sectors.
• In Electronics City, only 56% of the space is
occupied by IT/ITeS companies, 22% by biotechnol-
ogy companies, 15% by electronics & allied manu-
facturing units (cables, power electronics &
industrial electronics, circuit boards, electron guns,
engineering instruments, aerospace components,
tool & die casts, high precision components, etc)
and balance 8% is occupied by Engineering and
services companies.
• In Whitefield, more than 90% companies are
MNCs; in comparison, 65% of the companies
operating in Electronics City are India based firms.
Figure 9: Whitefield – Occupier Profile
18%
54%
28%
IT ITeS Others
40% 50%
30% 40%
30%
20%
20%
10% 10%
0% 0%
Software Engineering and Support Services
IT and Telecom BFSI Healthcare Retail/ Others R&D
Development
Manufacturing/
Media &
Entertainment
20

21. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Figure 10: Electronics City - Occupier Profile
1%
22%
38%
7%
15%
18%
IT ITeS
Manufacturing Electronics Engineering Companies
Biotech Others
40%
40%
30%
30%
20%
20%
10% 10%
0% 0%
IT and Telecom BFSI Healthcare Retail/ Others Software Engineering Support
Manufacturing/ Development and R&D Services
Media &
Entertainment
21

22. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Growth in Whitefield & Electronics City is witnessing stagnation due to rise of alternate IT/ITeS
Corridors – Outer Ring Road and Bangalore North.
• In the medium term, both Whitefield and
Electronics City micro-markets are expected to
witness lower growth rate compared to their early
2000 levels due to high activity in ORR and emer-
gence of Bangalore North.
• Even though, many developers have notified
IT/ITeS SEZs in Whitefield, few of them are yet not
confident to start the development works on
account of occupier’s preference for ORR and
Bangalore North.
• As per market intelligence, many companies in IT
and ITeS sectors have plans for expansion in the year
2011. Therefore, rate of annual absorption in 2011 is
expected to be maintained at least at 2010 levels
• In both the micro-markets, rentals for Grade B+
buildings are likely to remain under downward
pressure owing to high vacancy rate, while rentals
for SEZ space in Whitefield is expected to witness a
rise.
• Vacancy levels for Grade A buildings in Whitefield
& Electronics City are expected to drop in next 12
months and as a result rental levels will strengthen
in short term.
• Electronics City has limited land for future
development and the growth may spill over to
Electronics City - Sarjapur Road, where Infosys and
Wipro have acquired land for their future develop-
ments. As per market sources, Infosys is planning to
commence second software development centre in
this region.
• The next major development in Whitefield region
is expected along proposed PRR towards Hoskote.
Beary’s Group has already developed Global
Research Triangle Park Phase 1 in Whitefield Ashram
Road and Ittina Properties has a notified IT/ITeS SEZ
in Hoskote. However, the anticipated growth along
this region is likely to happen at a slower pace.
22

23. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
ACRONYMS
ORR -Outer Ring Road
INR Indian National Rupees
Jn. Junction
MNCs Multinational Companies
IT Information Technology
ITeS Information Technology Enabled Services
CBD Central Business District
SBD Suburban Business District
PBD Peripheral Business District
ITPB International Tech Park, Bangalore (Formerly known as
ITPL)
KIADB Karnataka Industrial Areas Development Board
ELCIA Electronics City Industries Association
EPIP Export Promotion Industrial Park
ITI Indian Telephone Industries
NTTF Nettur Technical Training Foundation
KSSIDC Karnataka State Small Industries Development
Corporation
KTPO Karnataka Trade Promotion Organization
PRR Peripheral Ring Road
BDA Bangalore Development Authority
BETL Bangalore Elevated Tollway Limited
BMRCL Bangalore Metro Rail Corporation Limited
LEED Leadership in Energy and Environmental Design
NICE Nandi Infrastructure Corridor Enterprises
JV Joint Venture
SBA Super Built-up Area
SEZ Special Economic Zone
STPI Software Technology Parks of India
DTC Direct Tax Code
PSU Public Sector Undertakings
BIA Bangalore International Airport
Q1 Quarter 1 (January – March)
Q2 Quarter 2 (April – June)
Q3 Quarter 3 (July – September)
BTS Built to Suit
BFSI Banking Financial Services and Insurance
R&D Research and Development
FMCG Fast Moving Consumer Goods
HNI High Net worth Individual
FSI Floor Space Index
23

24. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Authors
As a part of Strategic Advisory Group,
Dhara contributes to property market reports,
research papers as well as client assignments.
She has over 4 years of experience and has
worked on consultancy assignments across
commercial, residential, hospitality, retail and
industrial sectors. She holds an engineer
degree with M.Tech in planning from CEPT
University, Ahmedabad.
Dhara Dalal Manager Strategic Advisory Group
dhara@vestianglobal.com, +91 80 40620108
Shailendra contributes to property market
reports, research papers as wellas client
assignments. Shailendra has over 4 years of
experience in real estate and has worked on
consultancy assignments across varied sectors
namely commercial, residential, hospitality,
retail and industrial. He is an engineer and holds
a MBA degree from Ohio University, USA.
Shailendra Manager Strategic Advisory Group
Chandrasekar shailendra@vetianglobal.com, +91 80 40620121
Gorakh serves as Assistant Vice President and
heads the Strategic Advisory Group. He guides
the team and is responsible for research
output as well as client assignments. With over
8 years of work experience in consulting and
advisory domain, he has executed and
delivered assignments across asset classes for
developers and global clients. Gorakh pursued
his master's degree from Indian Institute of
Technology, Delhi and holds a bachelor's
degree in Architecture.
Gorakh
Jhunjhunwala AVP, Strategic Advisory Group
MRICS gorakh@vestianglobal.com , +91 80 40620100
24

25. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
About Us
Vestian Global Workplace Services, a subsidiary of the US- headquartered Vestian
Group and an international property consulting firm providing integrated end-to-
end real estate solutions to occupiers. Vestian Global offers Strategic Advisory,
Transaction Advisory and Project Management services.
Our client base comprises blue chip multinational and private Indian corporations
across sectors, and our primary value proposition is our corporate philosophy of
'Delivering Measurable Results', by which we deliver metrics-driven, accountable,
high standard conflict-free Services with exclusive focus on tenant representation.
Currently, our service platform covers key Asian markets viz. India and China; and
we are in the process of planning to expand our presence to other countries in
Asia Pacific and the Middle East.
Strategic Advisory Group
Vestian Global Workplace Services' Strategic Advisory Group aligns the business
strategies of corporate clients with their real estate portfolio strategy. Property
market intelligence; economic, urban and space planning principles; and analyti-
cal methods all come together to provide strategic insights to occupiers of real
estate.
Comprehensive market knowledge and extensive databases help us analyze
prevailing market trends and foresee the impact of economic, social and govern-
ment policies on real estate, especially their impact on end-users. Experienced
application of analytical tools and methods allows us to develop innovative
solutions that combine business, sectoral and geographical requirements.
Our studies span industrial, office, residential, retail and hospitality sectors to
include:
— Portfolio assessments
— Strategic location studies
— Market research and assessment
— Property valuations
— Development feasibilities
25

26. Bangalore: Whitefield and Electronic City
IT/ITeS Growth Corridor Series
Contacts
India Management
Shrinivas Rao
CEO - Asia Pacific
shrini@vestianglobal.com
+91 80 40620102
Strategic Advisory Group Offices
Gorakh Jhunjhunwala INDIA
AVP - Strategic Advisory Group
gorakh@vestianglobal.com
+91 80 40620111 Bangalore
318, Raheja Chambers,
12 Museum Road,
Transaction Advisory Bangalore-560 001
Balamurali K
Director - Chennai Operations
Chennai
balamurali@vestianglobal.com Suite No 702,
+91 44 66659351 MLS Business Center
Kuppu Arcade No. 4,
Anthony Ravindran Venkatanarayana Road
VP - Transaction Advisory T. Nagar, Chennai-600 017
tony@vestiangIobal.com
+91 80 40620106
Hyderabad
Sanjay Purbey Vatika Business Center
AVP - Business Development 3rd Floor, NSL Icon
sanjay@vestianglobal.com Rd no. 12, Banjara Hills
+91 44 39159351 Hyderabad-500 034
Project Management USA
200N LaSalle Street,
Ramaprasad Pormavill Suite 2830
SVP - Project Services Chicago, IL 60601
ramaprasad@vestianglobal.com
+91 80 40620118
CHINA
Ashok Gandhi Unit 1207, No.546,
VP - Project Services Changning Road
ashok@vestianglobal.com Changning District,
+91 9867754537 Shanghai-200 042
26

27. Acknowledgement
The Vestian Strategic Advisory team would like to take this opportunity to extend our gratitude towards all those who have helped us in our endeavor to produce
this report. We would like to especially thank the developers in Bangalore who have extended their valuable support and market information which has helped
us in ensuring authenticity of the report. We would also like to give a special mention to our Transaction Advisory Team and Workplace Support Team members
in particular- Kiran Kumar, Chandra Mohan Reddy and Manoj Joseph for their support.
27

28. www.vestianglobal.com
DISCLAIMER: This report contains information available to the public and has been relied upon by Vestian Workplace Services on the basis that it is accurate.
Vestian accepts no responsibility if this should prove not to be the case. No warranty or representation, expressed or implied, is made to the accuracy or
completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions and withdrawal
without notice.