An aerial view of Bengaluru city near Nagavara lake.
Credit: DH Photo/Pushkar V
Bengaluru: Having already established its leadership in this segment of the realty market, Bengaluru is set to touch an office space stock of 330-340 million square feet by 2030, according to a joint report by the real estate consulting firm CBRE South Asia Pvt Ltd and the Confederation of of Indian Industry (CII), released on Wednesday.
This is going to be driven primarily by sectors such as technology, engineering and manufacturing and banking, financial services and insurance (BFSI). There are also emerging sectors such as life sciences, aviation and automotive that will fuel to the uptrend, the report pointed out.
Remarkably, this uptick will see the development of new micro-markets for office location around the city. As has been reported, Bengaluru boasts the highest share in the country’s office space, having doubled its stock from 100 msf in 2013 to 223 msf in 2024. The total office space stock in India stands at about 880.7 msf as of last month. With an average annual absorption of 15-16 msf, the past few years, the city has been a front-runner on this count too.
Retail REIT
Beyond office space, Bengaluru has also taken the lead in retail space funded by real estate investment trusts (REITs), with three of the country’s 17 listed malls located here. The city’s retail stock has also more than doubled from 7.2 msf in 2013 to the present 16 msf (the second highest among Indian cities). The country’s total retail stock was 67.6 msf as of June. The report expects Bengaluru’s retail stock to rise to 20-30 msf by 2030.
GCC
Another area of leadership established by Bengaluru is in global capacity centres (GCCs), commanding a 41 per cent share of the country’s leasing market for the segment, between 2022 and June this year. This has largely been propelled by the city’s well-developed IT ecosystem, BFSI roots and new sectors such as life sciences, retail and aviation. The technology sector alone accounts for 30-35 per cent annual absorption in this segment.
Speaking at the release of the report, Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India, said, “Karnataka’s vibrant tech infrastructure must continue to evolve to retain its edge. Developing premium, sustainable tech spaces with cutting-edge facilities will be key. Additionally, prioritizing employee experience strengthens state’s appeal for both skilled workers and global corporations seeking Indian GCC locations”.
N Venu, Chairman, CII Karnataka State Council 2024-25 and CEO, India and South Asia, said, “There are projections that by 2047 this (real estate) market will be a $4.5 trillion market.” He added, “Every 5 years, we are adding a 1 trillion dollar market.”