Asia Pacific Regional Overview - NAI Commercial Real Estate

Bangalore IndiaMarket SummaryCountry Population1,129,866,154129 154 (July 2007 est.)Area (sq km)3,287,590GDP (in US$)US$1,249 billion (2008 est.)GDP Growth (%)8.4% (2008 est.)GDP Per Capita (in US$)US$1,089 (2008 est.)Inflation (%)4.4% (2006 est.)Interest Rate (Federal Funds Rate) ¹ (%) 5.25%Unemployment (%)7.2% (2008 est.)CurrencyIndian rupee (INR)Exchange Rate (US$ and date)1 INR = .02471 USD (3/17/08)Exchange Rate (Euro and date)1 INR = .01571 EUR (3/17/08)Market NameBangaloreMarket City Population6,532,577 (2005)About the MarketIndia's economy registered the highestgrowth rate ever achieved as it becameincreasingly popular as an investmentdestination. In 2007, 23 million squarefeet of new space will come on themarket, and by 2009 the number will riseto 50 million. An expected demand for 85million square feet of office space isanticipated from 2005–2008. India todayis the second most favored FDIdestination behind China.Bangalore witnessed large scaleacquisitions of commercial space in theOuter Ring Road and Whitefield regions.The prominent developers have investedin land and started construction of ClassA offices and retail facilities in theseareas. This will help in reducing thescarcity of commercial space in thecentral business district region. Rentalrates in these two upcoming commercialhubs will range between US$1 to US$1.1per square foot.31