Bengaluru’s office space is projected to reach 330-340 million sq ft by 2030, driven by technology, engineering, and BFSI sectors. Currently, at 223 million sq ft, the city leads India in office absorption. Enhanced infrastructure and emerging areas boost growth, while warehousing space hits a record 54 million sq ft.
Bengaluru is poised to lead India’s real estate sector, with its office stock expected to reach an impressive 330-340 million square feet by 2030, according to a report by CBRE and the Confederation of Indian Industry (CII). The city boasts 223 million square feet of commercial space as of Q2 2024, a significant increase from 100 million square feet in 2013.
The report, titled ‘Karnataka Horizon: Navigating Real Estate Excellence in the South,‘ highlights Bengaluru’s dominance in office absorption, outperforming other major cities like Delhi, Mumbai, Hyderabad, and Chennai. Key industries driving this growth include technology, engineering, manufacturing, banking, financial services, and insurance (BFSI), with sectors such as life sciences, aviation, and automobiles also contributing to the demand for office space.
Emerging areas in North Bengaluru, including Bellary Road, Yelahanka, Varthur Road, and Kadugodi, are gaining interest due to enhanced infrastructure. Ram Chandnani, Managing Director of Advisory and Transaction Services at CBRE India, noted, “Bengaluru houses 41% of the 1,600 Global Capability Centres (GCCs) in India. This is because of the talent pool in neighbouring states, growing infrastructure, and sustainable cost of living, including affordable rents compared to other cities.”
The report also emphasized the need to scale up infrastructure in Bengaluru to keep pace with the commercial boom. Chandnani added, “With the commercial real estate sector boom, there is a need to scale up infrastructure in the city. Currently, Bengaluru is playing catch-up with the growth.” He predicted a marginal rent increase as companies seek office spaces with various amenities.
Emerging industries must focus on upskilling and attracting more talent to sustain this momentum. Chandnani highlighted, “This is a golden period for India and its industry. The state and Union governments should fuel the growth.”
Despite global economic challenges in 2023, Bengaluru achieved a record-high warehousing space of 4.6 million square feet, with local developers leading the supply additions. The city now has 54 million square feet of warehousing space, ranking it among India’s top three industrial and logistics hubs, alongside Mumbai and Delhi-NCR.
In conclusion, Bengaluru’s real estate sector is on a robust growth trajectory, with substantial increases in office and warehousing spaces. The city’s ability to attract major industries and enhance infrastructure will be key to sustaining this growth and its position as a leading hub for commercial real estate in India.
