Bagmane Office Parks REIT Plans 3 Million Sq. Ft. Annual Expansion Amid Strong Office Market Demand

India’s commercial real estate market remains on a strong growth path, with demand for premium office assets continuing to outpace global uncertainties. According to Hugh Andrew, CEO of Bagmane Office Parks REIT, multinational corporations (MNCs), Global Capability Centres (GCCs), and businesses across technology, engineering, manufacturing, retail, and digital sectors are continuing to expand their office footprints across the country.

Speaking about the current market, Andrew said, “Large occupiers are planning office requirements two to three years ahead,” highlighting businesses’ confidence in India’s long-term growth prospects. The increasing preference for Grade A office developments reflects the growing importance of high-quality commercial infrastructure in supporting enterprise expansion.

REIT Targets Aggressive Portfolio Expansion

Bagmane Office Parks REIT is positioning itself for sustained growth with a clear expansion strategy. The REIT currently manages more than 20 million square feet of office space spread across six business parks, with approximately 3 million square feet already under construction.

Beyond its existing portfolio, the company has a development pipeline of nearly 47 million square feet, primarily in Bengaluru, along with additional land parcels in Chennai and Delhi. Andrew said the REIT expects to add around 2.5–3 million square feet annually and aims to double the size of its listed portfolio within the next five years.

The strategy reflects the company’s confidence in India’s office leasing momentum and its ability to meet growing enterprise demand through a steady supply of institutional-grade commercial assets.

Bengaluru Continues to Lead India’s Office Story

Andrew highlighted Bengaluru as one of India’s strongest commercial real estate markets, driven by its skilled workforce and thriving technology ecosystem. According to him, the city has already recorded approximately 19 million square feet of office demand this year, including nearly 6 million square feet within the last four to five weeks.

He also noted that construction quality across India’s commercial sector has improved significantly over the past two decades, supported by better building technologies, higher-quality materials, and rising expectations from global occupiers.

Commenting on market resilience, Andrew said, “The Indian office market has matured enough to absorb global volatility and continue growing, supported by talent and quality Grade A development.” The continued expansion of GCCs and multinational companies is also encouraging developers to deliver increasingly sophisticated office campuses.

Strong Balance Sheet Supports Future Growth

Bagmane Office Parks REIT believes India’s REIT market still has significant room for expansion. Andrew pointed out that the REIT’s successful listing on May 14, which was subscribed more than 25 times, reflects strong investor confidence in commercial real estate investment vehicles.

The company currently maintains a low gearing level of around 5%, providing financial flexibility to pursue future acquisitions and inorganic growth opportunities. In addition to office developments, the REIT is also enhancing its business parks by developing two hospitality projects—a 400-key business hotel and a 200-key luxury hotel—to improve the overall workplace ecosystem for occupiers.

While hospitality will complement its office campuses, Andrew clarified that the company’s primary focus remains commercial office real estate. As multinational companies continue to expand their operations in India and REIT adoption gains momentum, Bagmane Office Parks REIT is well positioned to capitalise on the country’s long-term demand for premium, income-generating office assets.