Bengaluru to Lead India's Commercial Real Estate Market with 330-340 mn sq feet Office Stock by 2030
Bengaluru is expected to dominate India's commercial real estate market with 330-340 million square feet of office stock by 2030, driven by demand from tech, BFSI, and life sciences sectors.
BengaluruCommercial Real EstateOffice StockCbreConfederation Of Indian IndustryReal Estate MumbaiJul 10, 2024
As of June 2024, the overall office stock in India stood at 880.7 million square feet, in which Bengaluru accounted for the largest contribution at 25%, according to the report. This came at an average annual absorption of about 15-16 million square feet in the city over the past few years.\r\n\r\nThe technology, engineering and manufacturing, and BFSI categories are expected to comprise the main demand drivers for Bengaluru's office market, alongside life sciences, aviation, and automobile as emerging sectors making their contribution in propelling demand. Presently, the technology sector accounts for 30-35% of annual absorption in the city, primarily in the commercial hubs of Outer Ring Road and Whitefield.
Bengaluru has led demand amongst global capability centres (GCCs) in India with a 41% share between 2022 - June, 2024. It credited this feat to a combination of offerings by the garden city, including a skilled talent pool, premium Grade-A assets, and a well-developed IT ecosystem.\r\n\r\nThe report also highlighted that Bengaluru's retail real estate stock has more than doubled to over 16 million square feet as of June 2024, from 7.2 million square feet in 2013, to hold 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. The average annual absorption in this segment stands at 1.5-2 million square feet in the capital city.
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 categories
What is the current share of Bengaluru in India's overall office stock?
25%
What are the emerging sectors contributing to demand in Bengaluru's office market?
Life sciences, aviation, and automobile
What is the expected growth in Bengaluru's retail real estate stock by 2030?
1.4 times growth to 20-30 million square feet
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