Bengaluru: The Un rivaled Hub of 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 the technology, engineering, and manufacturing sectors.
BengaluruCommercial Real EstateOffice SpaceRetail Real EstateIndiaReal EstateJul 10, 2024
The report, titled 'Karnataka Horizon Navigating Real Estate Excellence in the South', highlighted that Bengaluru's office stock has more than doubled to over 223 million square feet as of June 2024, from 100 million square feet in 2013. The city accounts for the largest contribution to the overall office stock in India, which stood at 880.7 million square feet as of June 2024.
The technology, engineering, and manufacturing sectors are expected to drive demand in Bengaluru's office market, alongside life sciences, aviation, and automobile as emerging sectors. The city 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.
Bengaluru's retail real estate stock has also more than doubled to over 16 million square feet as of June 2024, from 7.2 million square feet in 2013. This segment is primarily driven by entertainment, fashion and apparel, and homeware and department stores, each accounting for about 20-30% of the annual demand.
The city is expected to grow extensively in the peripheral regions, driven by the availability of large-sized land parcels and multiple upcoming infrastructure initiatives. However, long-term challenges such as ease of doing business, high land costs, and efficient space utilization need to be addressed to maintain Bengaluru's edge in the commercial real estate market.
Confederation of Indian Industry (CII) is a premier business association in India that works to create an environment conducive to the growth of industry in India.
CBRE is a leading commercial real estate services company that provides a range of services including advisory and transactions, capital markets, and property management.
Information
Bengaluru, also known as the Silicon Valley of India, is a major hub for technology and innovation in the country. The city has been a preferred destination for many multinational companies and startups, driven by its talent pool, infrastructure, and business-friendly environment.
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 sectors
What is the current retail real estate stock in Bengaluru?
Over 16 million square feet
What are the long-term challenges for Bengaluru's commercial real estate market?
Ease of doing business, high land costs, and efficient space utilization
How much is the average annual absorption in Bengaluru's retail market?
1.5-2 million square feet
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