Samsung Research and Development Institute India-Bangalore renews its 420,000 sq. ft. office lease in Bengaluru for five years, with an annual rent of ₹500 million. Despite global vacancy trends, India’s office space demand is growing and is driven by sectors like GCC and BFSI. Samsung’s commitment underscores Bengaluru’s role as a tech hub.
Samsung Research and Development Institute India-Bangalore (SRI-B) has renewed its lease for 420,000 square feet of office space in Bengaluru. The five-year agreement with Bagmane Developers includes a lock-in period until April 2027, ensuring stability for Samsung’s largest R&D centre outside South Korea.
The lease renewal, effective in June, spans the basement, ground, ten floors, and parts of the eleventh floor of the initially leased property from 2019. According to Propstack, an analytics firm, SRI-B will pay an annual rent of ₹500 million, with a 5% yearly escalation, translating to a monthly rent of ₹102 per square foot.
Despite a global rise in vacancy rates for Grade A office spaces, India is witnessing the opposite trend. Raja Seetharaman, co-founder of Propstack, attributes this to growth in the GCC, BFSI, and flexible office sectors. He notes that Bengaluru is experiencing numerous large transactions, mirroring high-value deals in other major Indian cities like Mumbai.
SRI-B is instrumental in driving Samsung’s innovation, focusing on enhancing global flagship devices through advancements in multimedia, AI, and the Internet of Things while also catering to the needs of Indian consumers. Earlier this year, Samsung Semiconductor India Research (SSIR) secured a 160,000-square-foot R&D facility in Bengaluru to bolster semiconductor research and development. It plans to expand its workforce by over 700 individuals from its current strength of more than 4,500 employees.
Bengaluru has led office space absorption in India this year, accounting for about a quarter of total leasing from January to June 2024. This surge is followed by Delhi-NCR at 16%, Chennai at 14%, and Pune and Hyderabad at 13%. Additionally, Bengaluru, Hyderabad, and Mumbai have led in supply additions, collectively accounting for 69% of the total office space added during the same period, according to CBRE.
In conclusion, Samsung’s renewed lease highlights the robust demand for office space in Bengaluru, reinforcing the city’s position as a prime hub for technological innovation and business growth in India. The commitment to maintaining and expanding its R&D capabilities reflects Samsung’s dedication to advancing technology and supporting India’s growing tech ecosystem.
