Bengaluru Leads Global Commercial Space Absorption, Offers Affordable Offices

According to a recent report by Equirus Capital, a Mumbai-based investment banking firm, India's real estate sector is witnessing strong momentum across residential, commercial, and hospitality segments. The report highlights that Bengaluru has emerged as a global hub, offering enterprises a highly cost-effective workforce and affordable office rentals.

The demand for commercial space in India's top eight cities is projected to grow at a compound annual rate of 11% between 2020 and 2025. Bengaluru, in particular, has stood out as a preferred destination, absorbing 75.2 million square feet of commercial space from 2016 to 2024 - the highest globally. In comparison, other major markets like New York, London, and Hong Kong saw relatively lower net absorption during this period.

Furthermore, Bengaluru and Mumbai offer some of the most affordable office rentals globally, at $27 per square foot per year as of Q3 2024. This pricing advantage, coupled with quality infrastructure, positions Indian cities as attractive alternatives for multinational corporations seeking expansion without incurring high overhead costs.

Beyond real estate, Bengaluru continues to strengthen its reputation as a global workforce hub. The city's cost competitiveness makes it especially appealing for business process management (BPM) operations, with operating costs per full-time employee being just 19% of that in Tier-II US cities.