BENGALURU: The real estate sector is expected to see a huge boom in the country and Bengaluru will lead the trend. According to a report, Bengaluru’s office stock (commercial spaces given out for leasing) is expected to touch 330-340 million sqft by 2030, the highest in the country. Currently, the city has 223 million sqft in Q2 2024, compared to 100 million sqft in 2013.
The report, ‘Karnataka Horizon: Navigating Real Estate Excellence in the South’, released by CBRE, the real estate consulting firm, and Confederation of Indian Industry (CII), on Wednesday, stated that Bengaluru has emerged winner in the office absorption (occupied by companies) segment compared to Delhi, Mumbai, Hyderabad and Chennai. The IT capital is also expected to see a spill-off of the trend in neighbouring districts.
Major industries contributing to this boom are technology engineering, manufacturing and Banking Financial Services and Insurance (BFSI). The sectors that drive demand for office space are life sciences, aviation and automobile. Emerging locations in North Bengaluru such as Bellary Road, Yelahanka and other areas, including Varthur Road and Kadugodi, are evoking significant interest due to improved infrastructure.
Ram Chandnani, Managing Director, Advisory and Transaction Services, CBRE India, told TNIE that 48-50% of commercial space leasing comes from South India. “Bengaluru houses 41% of 1,600 Global Capability Centres (GCCs) in India. This is because of the talent pool available in neighbouring states, growing infrastructure and sustainable cost of living, including rents which are affordable compared to other cities,” he said.
‘Golden period for country, its industry’
Ram Chandnani, Managing Director, Advisory and Transaction Services, CBRE India, told TNIE that with the boom in the commercial real estate sector, there is a need to scale up infrastructure in the city.
“Currently, Bengaluru is playing catch-up with the growth.” He said, “With a commercial boom, marginal increase in rentals is expected as companies look at various amenities an office space can provide.”
Experts said that to keep the momentum going, emerging industries need to upskill and attract more talent. “This is a golden period for India and its industry. The state and Union governments should fuel the growth,” Chandnani said.
Record-high warehouses
Despite global headwinds and economic slowdown in 2023, Bengaluru achieved a recordhigh warehousing space of 4.6 million sqft with local developers leading the supply additions.
The city now has 54 million sqft of warehousing spaces, ranking among the top three industrial and logistics hubs in India alongside Mumbai and Delhi-NCR.