As per a recent Colliers research, more than 40 million sqft of Special Economic Zones (SEZs) is under various stages of construction currently, with most of the new supply concentrated in NCR and southern cities such as Bengaluru, Chennai and Hyderabad.
Over the past few years, SEZ developments in India have gained popularity, especially among the technology sector occupiers besides traditional sectors such as electronics, gems and jewellery. Bengaluru, the technology capital, accounts for a maximum share of multi-tenanted SEZ space (39%) followed by Hyderabad and National Capital Region (NCR) 14% each, Chennai (13%), Pune (12%), Mumbai (5%) and Kolkata (3%);
Most of the SEZs are strategically located in preferred IT destinations such as Outer Ring Road (ORR) and Whitefield accounting 71% and 16% share respectively of the total SEZ stock in Bengaluru, while a few can also be spotted at North Bengaluru and Mysore Road;
Although SEZs share about 38% of the total office space absorption in Bengaluru in last three years, we saw a minimal inflow of new entrants in SEZs in 2017;
As per the research, the city is likely to add about 9.7 million sqft of SEZ space by 2020.
Source: Times Property, The Times of India, Bengaluru