Bengaluru MarketBeat Reports
Suvishesh Valsan • 10/04/2025
Cushman & Wakefield Bengaluru MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.
CURRENT MARKETBEATS
Bengaluru Office Report
Bengaluru office market recorded gross leasing volume (GLV) of 4.9 MSF while net absorption stood at ~2 MSF in Q1-25. Top 3 sectors entailed IT-BPM (32%), BFSI (22%) and engineering & manufacturing (17%). GCCs led with 48% share, making the city a premier destination for global capability centres. Bengaluru recorded new supply of 3.3 MSF, a 52% y-o-y growth. City-wise vacancy rates increased to 9.7% while rentails remained stable.
Bengaluru Retail Report
Bengaluru saw retail leasing volumes of ~0.19 MSF in Q1-25, a 2% y-o-y increase. Main streets drove leasing, accounting for 3/4th of the quarterly share while mall leasing stood at 0.05 MSF, marking a 22% annual growth. Fashion segment dominated with 40% share, followed by F&B (21%) and supermarkets (8%). Mall space take-up by fashion brands surged, accounting for 60% of lease volumes in Grade-A malls. Vacancy rates in Grade A malls stood at 6.8% while vacancies in Grade A + malls remained tight at ~ 3%. Mall rentals remained unchanged whereas main street rentals rose 1-2% q-o-q.
Bengaluru Residential Report
In Q1-25, Bengaluru residential market recorded ~12,200 unit launches. The south, southeast and southwest submarkets cumulatively comprised ~54% of quarterly launches. Northern submarkets contributed 38% to the quarterly launches while the East submarket (Whitefield) contributed just 8%. The mid-segment dominated with a 60% share. The luxury and high-end segment also remained strong at 40%. Average city-wide capital values rose 1-2% q-o-q, while rentals remained unchanged.
Bengaluru Industrial Report
Bengaluru saw 1.8 MSF of warehouse leasing in H2-24, with the full year ending at a record high of ~5 MSF. Eastern corridor dominated with 39% share followed by the western corridor (35% share). 3PL operators contributed over 50%, followed by retail (25%) and manufacturing (18%). The city recorded supply addition of ~2 MSF. Industrial leasing stood at just over 0.2 MSF for H2 with annual leasing at 0.8 MSF. North Bengaluru contributed 41% of annual leasing. Headline industrial rentals increased 3-4% y-o-y.
India Capital Market Report
Q2 2024 witnessed massive investment inflows amounting to INR 231.5 Bn (USD 2.77 Bn), marking a 1.5x q-o-q growth. The Logistics & Industrial (L&I) segment led with 56% share.
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