Technology, engineering and manufacturing, and BFSI sectors are expected to comprise the main demand drivers for Bengaluru’s office market
Livemint
Published16 Jul 2024, 02:45 PM IST
Bengaluru is expected to dominate India’s commercial real estate market with 330-340 million square feet of office stock by 2030, as per a report launched at a CII-CBRE event in the city on July 10 (Representational photo) (Freepik)
India’s IT capital Bengaluru is expected to continue its lead in India's commercial real estate market with 330-340 million square feet of office stock by the year 2030, according to a report by the Confederation of Indian Industry and CBRE.
The report titled ‘Karnataka Horizon: Navigating Real Estate Excellence in the South’ that was released in Bengaluru on July 10 highlighted that the city has seen its office stock more than double to over 223 million square feet as of June 2024, from 100 million square feet in 2013, to comprise the highest share in the segment amongst all major cities in the country.
As of June 2024, the overall office stock in India stood at 880.7 million square feet, in which Bengaluru accounted for the largest contribution at 25%, per the report. This came at an average annual absorption of about 15-16 million square feet in the city over the past few years, it added.
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“Over the next few years Bengaluru is expected to grow extensively in the peripheral regions…Coupled with the availability of large-sized land parcels and multiple upcoming infrastructure initiatives, the commercial sector is slated to expand significantly in the northern, eastern and southern parts,” said Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East and Africa, CBRE India.
Which sectors are driving demand?
In the run up to 2030, the technology, engineering and manufacturing, and BFSI categories are expected to comprise the main demand drivers for Bengaluru’s office market, alongside life sciences, aviation and automobile as emerging sectors making their contribution in propelling demand.
Presently, the technology sector accounts for 30-35% of annual absorption in the city, primarily in the commercial hubs of Outer Ring Road and Whitefield, according to the report.