Bengaluru is projected to be the undisputed leader in India’s commercial real estate market by 2030, driven by its robust IT sector, strong leasing market, and expanding retail space.
Bengaluru, India’s IT capital, is poised to solidify its dominance in the country’s commercial real estate market, according to a joint report by the Confederation of Indian Industry (CII) and CBRE. The report predicts that by 2030, Bengaluru’s office space stock will reach a staggering 330-340 million square feet, surpassing all other Indian cities.
Factors Fueling Bengaluru’s Growth:
- Technology Hub: The city’s established reputation as a major tech hub continues to attract a significant number of information technology (IT), engineering and manufacturing (E&M), and Banking, Financial Services and Insurance (BFSI) companies. These sectors are expected to be the key drivers of demand for office space.
- Strong Leasing Market: Bengaluru boasts a robust Global Capability Center (GCC) leasing market, further propelling the city’s office space absorption. Over the past few years, the city has witnessed an average annual absorption of around 15-16 million square feet.
- Retail Expansion: The report also highlights Bengaluru’s growing retail real estate sector. As of June 2024, the city’s retail stock has more than doubled to over 16 million square feet, holding the second-highest share among major Indian cities. This is expected to reach 20-30 million square feet by 2030, reflecting a significant growth trajectory.
