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Impact Of IT, ITES on Real Estate in Bangalore

IT industry has three major components:

1. IT software and services industry
2. IT hardware, peripherals and networking industry
3. IT-enabled services industry.

ITES includes services such as call centers, transcription, data processing, online education, etc. It has made a huge impact on international workflow into India, mainly because of low communication costs and the financial sense behind outsourcing non-core activities. It is an obvious advantage for any modern city to have a significant presence of this industry, which creates white-collar, high-profile jobs and has remarkable effects on its real estate market.


While Bangalore has advantages like available skilled workforce, a high quality of living and better career prospects, factors like the cost of real estate and ready access to international destinations also matter.

Commercial developments in the city have been done by the private sector and the Bangalore Development Authority (BDA), which controls the growth process of the city.

The city’s commercial market is delineated into three spatial limits – central business district (CBD), suburban and peripheral. Bangalore has no true concept of a CBD. This flexibility has resulted in business growth from MG Road to other main roads such as Residency Road, Richmond Road and Brigade Road, Infantry Road and Cunningham Road.

Some of the prominent streets in prime off-CBD areas in Bangalore are Commercial Street, Infantry Road, Cunningham Road, Richmond Road, Residency Road, Millers Road, St Mark’s Road, Vittal Mallya Road and Lavelle Road. The advantages they offer are reduced congestion, the availability of space and proximity to the city center.

The suburbs of Bangalore are classified as areas near to Airport Road, Koramangala, Indiranagar and Jayanagar. The peripheral areas consists of Bellary Road, Whitefield and Bannerghatta Road.


Consolidation of real estate portfolios by both Indian and multinational ( MNC) information technology companies has significantly boosted the real estate market in Bangalore. In this sector, both software and hardware have been huge contributors to the growth of the CBD, off-CBD and suburban areas. Most of the MNCs prefer leasing as it offers flexibility when it comes to relocation.

Demand for back-offices and contact centers has resulted in strong growth in suburban real estate development, with leading information technology companies lining up their investments for setting up new facilities in Bangalore. The continued interest of these MNCs clearly indicates that Bangalore offers many factors that are key in the IT/ITES space.

Via : ET

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