Bengaluru’s office space stock to become highest in India by 2030

Technology, Engineering & Manufacturing, and BFSI sectors are expected to be primary demand drivers

Updated - July 11, 2024 03:31 pm IST

Published - July 10, 2024 10:02 pm IST - Bengaluru

Emerging locations in North Bengaluru are attracting significant interest due to improved infrastructure.

Emerging locations in North Bengaluru are attracting significant interest due to improved infrastructure. | Photo Credit: SOMASHEKARA GRN

Bengaluru office stock (commercial real estate) is set to touch 330-340 million sq. ft. by 2030, the highest in India, said a study released by global realty advisory firm CBRE in association with Confederation of Indian Industry here on Wednesday.

Technology, Engineering & Manufacturing, and BFSI sectors are expected to be primary demand drivers, while life sciences, aviation, and automobile are likely to be emerging drivers, according to the analysis.

Demand drivers

The report also pointed out that with an average annual absorption of about 15-16 million sq. ft. over the past few years, Bengaluru has also been the front-runner in office absorption as compared with other Indian cities. Technology, engineering & manufacturing and BFSI sectors are expected to be the main demand drivers of office space while life sciences, aviation and automobile are likely to be the emerging sectors that would drive demand.

As per the study titled: ‘Karnataka Horizon: Navigating Real Estate Excellence in the South’, Bengaluru has become India’s largest and most crucial office market, outpacing all other cities. The city boasts a more than two-fold increase in office stock, rising from 100 million sq. ft. in 2013 to over 223 million sq. ft. as of Jun’24, holding the highest share among the Indian cities.

Tech sector

The technology sector accounts for 30-35% of annual absorption in the city, primarily in the commercial hubs of ORR and Whitefield, the key growth areas with a high concentration of global corporations. Additionally, emerging locations in North Bengaluru are attracting significant interest due to improved infrastructure, ample land availability, and competitive rentals. Apart from technology, other sectors such as engineering & manufacturing, flexible space operators, and BFSI prominently contribute to Bengaluru’s commercial dynamism.

The report also highlights that Bengaluru has cemented its status as the leader for global capability centres (GCCs), commanding a 41% share in India’s GCC leasing market (from 2022 to Jun’24). Bengaluru’s GCC growth is driven by a combination of factors, including a skilled talent pool, premium Grade-A assets, and a well-developed IT ecosystem, the CBRE-CII joint study found.

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