Bengaluru’s Office Space Market on Track to Expand: Report
Bengaluru, the bustling tech hub of India, is gearing up for a massive expansion in its office space market. According to a report by the Confederation of Indian Industry (CII) and CBRE, the total stock of office space in Bengaluru is expected to reach an impressive 330-340 million square feet (msf) by 2030.
Continued Growth Fuelled by the IT Sector and Infrastructure Development
This projected growth is primarily driven by the thriving IT sector and the city’s ongoing infrastructure development. Bengaluru’s office market has already displayed remarkable performance, with an average absorption rate of around 12-14 msf annually in recent years. This trend is expected to continue as the technology sector continues to flourish and as more investments pour into the commercial real estate sector.
The IT and ITeS sectors remain the dominant drivers of office space demand in Bengaluru, accounting for a significant portion of the city’s commercial real estate activity. The report highlights the emergence of new growth corridors and the development of Grade A office spaces, which are attracting both domestic and international investors.
Infrastructure Developments Enhancing Bengaluru’s Appeal
Enhancements to Bengaluru’s infrastructure, such as expanding metro rail connections and improved connectivity, have significantly contributed to the city’s attractiveness as a prime business destination. These developments have strengthened Bengaluru’s position as a preferred location for companies looking to establish or expand their operations.
Ram Chandnani, Managing Director of Advisory & Transactions Services at CBRE India, stressed the importance of continuous infrastructure investments in supporting the city’s growth. He emphasized that the development of new business districts and improvements to existing ones will be crucial in maintaining Bengaluru’s competitive edge.
Sustainability as a Key Focus for Future Success
The report also underscores the importance of sustainable development practices in Bengaluru’s expanding office space market. Stakeholders are urged to prioritize green buildings and energy-efficient designs. With the anticipated growth on the horizon, adopting sustainable practices will be essential for ensuring long-term success and resilience in Bengaluru’s office market.
In Summary
With strong demand from the thriving IT sector and ongoing infrastructure developments, Bengaluru’s office space market is poised for significant expansion. The projected increase in the city’s total office space stock to 330-340 msf by 2030 solidifies Bengaluru’s position as a critical hub for commercial real estate in India. As the city continues to attract businesses and investors, sustained growth and success will rely on continued infrastructure investments and a focus on environmentally conscious and sustainable practices.
