Bengaluru’s office space stock is set to become the largest in India by 2030.

Bengaluru’s office stock (commercial real estate) is expected to touch 330-340 million square feet by 2030, the highest in India, according to a study released on Wednesday by global real estate consultancy CBRE in association with the Confederation of Indian Industry.

According to the analysis, the main demand drivers are expected to be the technology, engineering and manufacturing and financial and investment services sectors, while emerging drivers are likely to be life sciences, aerospace and automotive.

Demand drivers

The report also pointed out that with an average annual absorption of around 15-16 million sq ft over the last few years, Bengaluru is also leading in office absorption compared to other cities in India. Technology, engineering and manufacturing and BFSI sectors are expected to be the major drivers of demand for office space, while life sciences, aerospace and automotive are likely to be the emerging sectors that will drive demand.

As per the study titled: ‘Karnataka Horizon: Navigating Real Estate Excellence in the South’, Bengaluru has emerged as the largest and most important office market in India, surpassing all other cities. The city boasts of more than doubling its office stock, rising from 100 million sq ft in 2013 to over 223 million sq ft by June 2024, occupying the highest share among Indian cities.

Technology Sector

The technology sector contributes 30-35% of the annual absorption in the city, mainly in ORR and Whitefield malls, key growth areas with a high concentration of global corporates. Moreover, emerging locations in North Bengaluru are seeing a lot of interest due to improved infrastructure, ample land availability and competitive rental rates. Apart from technology, other sectors like engineering and manufacturing, flexible space operators and BFSI are contributing significantly to Bengaluru’s commercial dynamism.

The report also highlighted that Bengaluru has strengthened its leadership position in the global capability centre (GCC) space, accounting for 41% of the Indian GCC leasing market (from 2022 to June 2024). Bengaluru’s GCC growth is being driven by a combination of factors, including a skilled talent pool, premium Grade-A assets and a well-developed IT ecosystem, the joint CBRE-CII study found.