Bengaluru Set to Reign Supreme in India's Commercial Real Estate Market
Bengaluru is expected to dominate India's commercial real estate market with 330-340 million square feet of office stock by 2030, driven by tech, engineering, and BFSI sectors.
Real Estate MarketCommercial Real EstateOffice StockBengaluruCbreConfederation Of Indian IndustryReal Estate NewsJul 10, 2024
The report, titled 'Karnataka Horizon Navigating Real Estate Excellence in the South', highlights that Bengaluru has seen its office stock grow at an average annual absorption rate of about 15-16 million square feet over the past few years. The technology sector accounts for 30-35% of annual absorption in the city, primarily in commercial hubs like Outer Ring Road and Whitefield.
In the run-up to 2030, the technology, engineering and manufacturing, and BFSI categories are expected to be the main demand drivers for Bengaluru's office market, alongside emerging sectors like life sciences, aviation, and automobile. Bengaluru has led demand amongst global capability centres (GCCs) in India with a 41% share between 2022 - June, 2024, thanks to its skilled talent pool, premium Grade-A assets, and well-developed IT ecosystem.
However, the city's vibrant tech infrastructure must continue to evolve to retain its edge. Developing premium, sustainable tech spaces with cutting-edge facilities will be key. Long-term challenges for this market include ease of doing business, high land costs, and efficient space utilization.
In the retail segment, Bengaluru's real estate stock has more than doubled to over 16 million square feet as of June 2024, holding the second-highest share among the top Indian cities at 24%. This metric is further estimated to increase to 20-30 million square feet by 2030, representing a 1.4 times growth. Absorption in Bengaluru's retail market is primarily driven by entertainment, fashion and apparel, and homeware and department stores, each accounting for about 20-30% of the annual demand.
CBRE is a leading global real estate services company that provides comprehensive solutions to property owners, investors, and occupiers. Confederation of Indian Industry (CII) is a non-governmental trade association that works to create and sustain an environment conducive to the growth of industry in India.
Frequently Asked Questions
What is the expected office stock in Bengaluru by 2030?
330-340 million square feet
What are the main demand drivers for Bengaluru's office market?
Technology, engineering and manufacturing, and BFSI sectors
What is the current share of Bengaluru in India's office stock?
25%
What is the estimated growth in Bengaluru's retail real estate stock by 2030?
1.4 times growth to 20-30 million square feet
What are the emerging sectors driving demand in Bengaluru's office market?
Life sciences, aviation, and automobile
Tags:
Related News Articles
Raymond's Real Estate Venture Receives Thumbs Up for Demerger, Eyes Rs 25,000 Crore Revenue
Raymond Realty, a subsidiary of Raymond Ltd, has launched its first joint development agreement project in Bandra, Mumbai, and is set to demerge from its parent company to unlock its growth potential.
FPCE Questions MahaRERA's Move to Set Up Forum for Builder-Buyer Disputes
FPCE President Abhay Upadhyay has written to the Union Ministry of Housing and Urban Affairs, objecting to MahaRERA's conciliation forum and its 'suspicious functioning'.
REC Ltd Shares Soar Over 3% After Signing MoUs Worth ₹1.12 Lakh Crore
REC Ltd shares surged over 3% on the NSE after the company signed non-binding MoUs worth ₹1.12 lakh crore with renewable energy developers.
MHADA Lottery 2024: 19,000 Affordable Homes for Sale in MMR and Pune at ₹12 Lakh and Above
The Maharashtra Housing and Area Development Authority (MHADA) is set to launch a lottery for 19,000 affordable homes in the Mumbai Metropolitan Region (MMR) and Pune. The homes are priced starting from ₹12 lakh, offering a glimmer of hope for low and mid
Residential Real Estate Booms, Ultra-Luxury Sector Slips, Flex Spaces Rise
Mumbai's home sales hit a 13-year high in 2024, while a new report highlights various trends in the real estate market across major Indian cities. The report by Knight Frank India provides a comprehensive overview of residential and office space dynamics.
RR Rate Hike Faces Delays Despite Ministerial Directive, Officials Cite Time Constraints
Despite a directive from the minister, the pre-publication of Revised Rate (RR) rates is likely to face delays due to time constraints, raising concerns among real estate developers in Pune. A developer explains the potential impact on flat prices and uns