NatWest Group has leased 3.7 lakh sq. ft. in Bengaluru’s Bagmane Constellation Business Park to expand its engineering workforce, which will be operational by April 2025. This move highlights Bengaluru’s appeal to MNCs, though Chennai is emerging as a strong competitor in the office space market due to lower rental rates.
UK-based banking and insurance giant NatWest Group has secured a significant lease of 3.7 lakh square feet in Bengaluru’s Bagmane Constellation Business Park. According to industry sources, the lease spans 11 floors and covers a 10-year term, which is estimated to cost the company around Rs 1.5-1.8 crore per month. This new office space will become operational by April 2025 and is part of NatWest’s broader strategy to expand its engineering workforce in India.
This move follows NatWest’s announcement last year to hire 3,000 new software engineers in India by 2026, underscoring its commitment to strengthening its technological capabilities. NatWest operates in Bengaluru, Chennai, and Gurugram, employing around 17,000 people. The new Bengaluru office is set to become a key hub for technology solutions and innovation, further cementing the city’s role as a strategic location for the company in India.
“Strengthening our global operations further positions us at the forefront of innovation as we prioritise improving the customer and colleague experience,” said Scott Marcar, Group Chief Information Officer at NatWest Group. This expansion also highlights India’s importance to NatWest, as the country hosts the company’s second-largest employee base outside the UK.
Bengaluru continues to attract major multinational corporations (MNCs) looking for premium office space. Earlier this year, Texas Instruments Pvt Ltd leased 2.23 lakh square feet in Bagmane Tech Park at a monthly rent of Rs 1.4 crore. Similarly, Google made headlines last year by leasing over 29 lakh square feet in Bengaluru through multiple deals, including partnerships with Bagmane Developers and Table Space.
Despite Bengaluru’s popularity, Chennai has emerged as a strong contender in the office space market, surpassing both Bengaluru and Hyderabad in 2023. Offshore MNCs leased 7 million square feet in Chennai this year, compared to 6.1 million sq. ft. in Hyderabad and 5.6 million sq. ft. in Bengaluru. Experts attribute Chennai’s rise to its lower rental rates and fewer issues like congestion, making it an attractive alternative for international companies.
As NatWest Group and other MNCs continue to invest in Indian cities, the demand for premium office spaces in key locations like Bengaluru and Chennai is expected to remain strong, driving further commercial real estate market growth.
