Office supply completions in the top seven Indian cities are anticipated to reach 165 million square feet between 2023 and 2025, with Bengaluru expected to lead this supply, accounting for 29% of the total share in India.
Despite global uncertainties like geopolitical tensions and economic fluctuations, Bengaluru experienced heightened activity in its commercial real estate sector throughout 2023.
By the conclusion of the second quarter in 2023, the office sector began rebounding, witnessing renewed leasing activities and fresh inventories. Reports indicate that the net absorption of commercial real estate from January to September 2023 in India totaled 26 million square feet, constituting 68% of the 2022 full-year figure.
Here’s a summary of the significant office transactions that distinguished Bengaluru in 2023
- Google leased over 29 lakh sq ft across six deals, with five transactions involving Google India Private Ltd and Google Connect Services India partnering with Bagmane Developers. The sixth deal was made with managed workplace provider Table Space.
- Morgan Stanley secured 1.36 lakh sq ft office space by renewing its lease for multiple floors in Ecoworld on Outer Ring Road, Sarjapur, Bengaluru.
- Qualcomm India leased 6.21 lakh sq ft from Bagmane Developers for nine years in Bagmane Capital-Ankor.
- Amazon Development Centre acquired 6.6 lakh sq ft in Constellation Business Park-Taurus II by Bagmane Developers.
- Mercedes-Benz R&D renewed its lease for 5.42 lakh square feet in the Embassy Crest building in Whitefield.
Looking ahead to 2024, experts project India, especially within the Asia Pacific region, to remain a preferred emerging area due to its rapid growth, competitive pricing, favorable valuations, and higher returns. Forecasts suggest that global capability centers (GCCs) will resume real estate decisions in India with the receding impact of global economic uncertainties.
Additionally, Bengaluru-based developers aim to expand their commercial spaces significantly in 2024, with plans to add over 4 million sq ft of office space and continue expanding housing projects in the city, as highlighted by Darshan Govindaraju, Director of Bengaluru-based Vaishnavi Group.