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Bengaluru has surpassed all other cities to become India’s largest and most crucial office market. The city has seen its office space more-than-double, increasing from 100 million sq. ft. in 2013 to over 223 million sq. ft. as of June 2024, giving it the highest share among Indian cities. The tech capital of India is followed by Delhi-NCR at 158 mn sq ft, followed by Mumbai at 141 mn sq ft and Hyderabad at 124 mn sq ft. The total office space in India as of June 2024 was 880.7 million sq. ft, CBRE-CII joint report said.Additionally, the Bengaluru office stock is expected to touch 330-340 million sq. ft. by 2030, the highest in the country, with an average annual absorption of about 15-16 million sq. ft. over the past few years,“Karnataka’s vibrant tech infrastructure must continue to evolve to retain its edge. Developing premium, sustainable tech spaces with cutting edge facilities will be key. Additionally, prioritizing employee experience strengthens the state’s appeal for both skilled workers and global corporations seeking Indian GCC locations”, said Ram Chandnani, managing director, Advisory & Transactions Services, CBRE India.According to the report, technology, engineering & manufacturing, and BFSI sectors are expected to be the main demand drivers of office space, while life sciences, aviation and automobile are likely to be the emerging sectors that would drive demand.The technology sector accounts for 30-35% of annual absorption in the city, primarily in the commercial hubs of ORR and Whitefield, the key growth areas with a high concentration of global corporations. “Emerging areas in North Bengaluru beyond the traditional central business districts are garnering considerable interest due to enhanced infrastructure, abundant land availability, and competitive rental rates. In addition to the tech sector, other industries such as engineering and manufacturing, flexible workspace operators, and BFSI are playing a significant role in driving Bengaluru’s commercial vibrancy,” said Thirumal Govindraj, managing director, Executive Board, RMZ Corp. The report also highlights that Bengaluru has cemented its status as the leader for global capability centres (GCCs), commanding a 41% share in India’s GCC leasing market (from 2022 to June 2024). Bengaluru’s GCC growth is driven by a combination of factors, including a skilled talent pool, premium Grade-A assets, and a well-developed IT ecosystem. The city’s ease of doing business also contributes significantly, making it an attractive destination for GCCs.“The extensive scalability of both assets and talent resources serves to solidify Bengaluru’s status as a prominent commercial centre. In recent years, the GCC city has seen a diversification of its commercial landscape, expanding beyond its traditional technology and BFSI foundations to accommodate specialized firms in retail, aerospace, and life sciences. This development has strengthened its position as a multifaceted commercial hub,” said Mahesh Khaitan, executive director of Sattva Group. Bengaluru has led office space absorption in the country so far this year, accounting for about one-fourth of the total leasing from January to June 2024, followed by Delhi-NCR at 16%, Chennai at 14%, and Pune and Hyderabad at 13% each. Bengaluru, Hyderabad, and Mumbai, led supply additions, collectively accounting for 69% of the total in the same period, according to CBRE.
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