Bengaluru office stock to reach 330-340 msf by 2030: CII-CBRE

Real estate consulting firm CBRE South Asia and the Confederation of Indian Industry (CII) announced that Bengaluru's office stock is projected to reach 330-340 million square feet by 2030, the highest in the country, at an event on Wednesday. In recent years, the city has seen an average annual absorption of 15-16 million square feet. The primary demand drivers for office space are expected to be the technology, engineering, manufacturing, and BFSI (banking, financial services, and insurance) sectors, while emerging demand is anticipated from the life sciences, aviation, and automobile sectors.

The CII Karnataka Real Estate Conclave 2024, themed "Karnataka Horizon: Navigating Real Estate Excellence in South," highlighted Bengaluru's significant growth in office stock, which more than doubled from 100 million square feet in 2013 to over 223 million square feet by June 2024. In comparison, the total office stock in India as of June 2024 stood at 880.7 million square feet.

 

In Bengaluru, the technology sector accounts for 30-35 per cent of annual absorption, primarily in the commercial hubs of Outer Ring Road (ORR) and Whitefield, which are home to numerous global corporations. Emerging locations in North Bengaluru are also attracting significant interest due to improved infrastructure, ample land availability, and competitive rentals. Besides technology, sectors like engineering and manufacturing, flexible space operators, and BFSI significantly contribute to Bengaluru's commercial dynamism.

“South witnesses about 48-50 per cent of the office leasing across cities like Bengaluru, Hyderabad, Chennai, and Kochi. Among 600 odd global centre capabilities (GCCs) in India, about 40 per cent are based out of Bengaluru. This trend is mainly driven by the talent pool, infrastructure, and cost of living,” said Ram Chandnani, managing director, advisory and transactions services, CBRE India.

The CII-CBRE event highlighted infrastructure initiatives crucial for Bengaluru's economic development, including easing traffic congestion, enhancing metro connectivity, improving airport access, and bolstering regional links through projects like the Bengaluru Business Corridor (BBC) and Satellite Town Ring Road (STRR).

“By 2030, Bengaluru is expected to have thriving commercial, residential, retail, and industrial and logistics (I&L) sectors. The city is likely to capitalise on its existing strengths to attract investment in these growth areas. Bengaluru's success is also expected to spill over to nearby Tier-II cities in Karnataka, aided by initiatives such as the ‘Beyond Bengaluru’ programme,” added Chandnani.

Speaking on the upcoming budget expectations, Chandnani further said, “The government should continue to upscale talent on upskilling and focus on infrastructure development. This is the golden period for India; hence, infrastructure needs to be sorted to keep growth fuelling.”