Commercial real estate is booming in India for many reasons. After the pandemic, office trends are changing. Many companies want employees to work in a mix of office and remote settings.
Commercial real estate is booming in India for several reasons. After the pandemic, office trends are changing. Many companies are urging their employees to come back to the office, either in a hybrid setup or fully.
Surprisingly, a 2023 report by CBRE found that rents in major Indian cities are 50% lower than in other Asian markets and 60% lower than in Europe. This makes India a great place for commercial investment.
As the economy keeps changing, Bangalore shines as a top spot for investing in commercial property. A report by Cushman and Wakefield says, "Gross leasing volumes (GLV) hit 8.3 million square feet in Q4, a record high for the city and almost 4 times more than the previous quarter." Known as the Silicon Valley of India, Bangalore attracts businesses and investors. In 2024, there are strong reasons to think about investing in commercial real estate in this dynamic city.
Why Invest in Commercial Property?
1) Thriving Tech Industry:
Bangalore, often dubbed the Silicon Valley of India, boasts a strong reputation as an IT hub. It's home to many multinational tech giants and a growing startup scene. This fuels the demand for commercial spaces, particularly in tech parks and IT hubs. Whether it's commercial leases or rental properties, investors have a range of options to diversify their portfolios. Investing in real estate also lets you tap into this expanding market and secure a stable, long-term tenant base.
2) International Connectivity:
According to a recent CBRE report, GCCs (Global Capability Centers) are expected to lease office space totaling around 60-62 million square feet (msf) in India from 2023 to 2025. Bangalore's Kempegowda International Airport is a significant hub for international travelers. With direct flights to major global destinations, the city's commercial real estate market enjoys enhanced global connectivity. This accessibility is appealing to multinational corporations seeking to establish or grow their presence in India, driving up demand for commercial space.
3) Booming Start-Up Scene:
Bangalore boasts a lively and energetic startup ecosystem. With new businesses popping up and existing ones scaling up, the need for office spaces and adaptable work environments keeps rising. Investing in commercial real estate lets you meet the demands of these startups, putting your investment at the heart of innovation and entrepreneurship. Whether it's a property owner or tenant, having a range of property types to choose from ensures a stable cash flow.
4) Infrastructure Growth:
Bangalore has seen notable infrastructure improvements in recent times, with ongoing projects boosting connectivity and accessibility. Better road networks, expanding metro lines, and the growth of business districts add to the appeal of commercial real estate in Bangalore, offering opportunities for both active and passive income. Additionally, investing in areas with upcoming infrastructure projects can result in significant appreciation in property value over time.
5) Reliable Real Estate Market:
Despite economic ups and downs, Bangalore's real estate market has proven resilient, presenting a solid investment opportunity. The city consistently shows high property appreciation rates, attracting long-term investors and a diverse tenant pool. Investing in commercial real estate in Bangalore offers stability and the chance for lucrative returns, making it an attractive option for those seeking to diversify their investment portfolios with higher rental income potential.
6) Educational Institutions and Skilled Workforce:
According to a 2023 CBRE report, Bangalore hosts between 70,000 to 80,000 fresh talents, making it an ideal location for GCCs and commercial investments. The city has a strong educational system that churns out a skilled and diverse workforce. Companies, particularly in the tech industry, are attracted to Bangalore for its access to talented professionals. Commercial property investments here cater to businesses seeking proximity to renowned educational institutions and a skilled labor force, with efficient property management services.
7) Cultural and Lifestyle Allure:
Bangalore's diverse culture, agreeable weather, and high quality of life draw in professionals and businesses alike. Its appeal extends beyond just business, driving up the demand for commercial spaces. Investing in commercial properties lets you match the lifestyle preferences of businesses and professionals who seek a lively and vibrant work atmosphere.
Why Invest in Commercial Property?
Entering 2024, Bangalore's commercial real estate market shines as an opportunity for investors. With a thriving tech sector and a blend of favorable weather, culture, and talent, Bangalore is perfect for real estate investors with a solid strategy. It's among the top cities in India where investors can greatly profit from lucrative commercial real estate investments.
