Amazon Expands in Bengaluru with 1.1 Million Sq Ft New Office Space
- Industry News
- June 20, 2024
India’s office space market recorded 18.61 million sq ft absorption in Q3 FY25, driven by BFSI and flex spaces contributing 39%. Southern cities led with 61% share, Bengaluru dominating at 36%. Vacancy dropped to 14.8%, while Hyderabad led new completions. Despite a 4% dip in construction, rentals remained stable.
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READ MOREAmazon India is relocating its Bengaluru headquarters to reduce costs, saving nearly ₹8 crore annually on rent. The move affects 5,000 employees and raises challenges for landlord Brigade Enterprises. Meanwhile, Amazon’s logistics and payments units show steady growth, and its wholesale division reduces losses amid stricter FDI regulations in India.
READ MOREIndia’s commercial real estate is shifting to an OpEx model, prioritising flexibility and cost-efficiency. Corporations are embracing managed and co-working spaces, with leasing projected at 70 million sq. ft by 2024. Sustainability and tech-driven solutions like smart building systems further drive this trend, transforming workspace strategies for adaptability and growth.
READ MOREIndia’s real estate market will see a steady recovery and transformation in 2024. Office leasing nears pre-pandemic levels, fueled by IT and hybrid work models, while e-commerce drives warehousing demand. Residential trends favour integrated townships and sustainable green buildings. Affordable housing expands, though affordability challenges persist in major cities like Mumbai and Delhi.
READ MOREIndia leads the Asia-Pacific office market, driving over 70% of Q3 2024 leasing demand, fueled by a 10.7% YoY surge in regional activity. With rising rental rates, robust absorption in Bengaluru and Hyderabad, and 1.34 million square meters of new completions, India cements its position as the APAC market leader for 2025.
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