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The real estate market in the South is geared for substantial growth, driven by increasing leasing activities in Chennai, Bengaluru, Kochi, and Hyderabad. Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India, said he attributed this growth to advancements across education, infrastructure, cost of living, and rental rates.
The first half of 2024 saw leasing in the southern region touch an estimated 57.3 per cent, significantly surpassing the 43.6 percent observed in the northern region, added Chandnani.
Bengaluru gears up
Further. CBRE along with the Confederation of Indian Industry (CII), released the ‘Karnataka Horizon: Navigating Real Estate Excellence in the South’ report which highlighted Bengaluru’s burgeoning office and retail sectors. By 2030, the office spaces in the city are expected to expand to 330-340 million sq. ft., which is assumed to be the largest in India.
The city has the highest office absorption rate with 15-16 million sq. ft, compared with other Indian cities. Technology, engineering & manufacturing, and BFSI sectors are expected to be the main demand drivers of office space. The retail space is also experiencing growth, having doubled since 2013, and now spans more than 16 million sq. ft., with projections for 20-30 million sq. ft. by 2030.
Fashion, entertainment, and food & beverage industries are driving the retail growth, supported by new malls, rising consumer awareness, and increased disposable income.
Infrastructural development
This boom is supported by a set of infrastructural developments, including ease of traffic congestion by introducing metro new lines — purple, blue, yellow, and pink — and improving airport access. Development efforts have also focused on the north, specifically the Hebbal-Bellary Road area. Additionally, initiatives to enhance regional connectivity such as the Bengaluru Business Corridor (BBC) and the Satellite Town Ring Road (STRR) were also discussed.
Beyond Bengaluru
The success of Bengaluru will trickle down to nearby emerging cities including Belagavi, Hubli-Dharwad, Mangaluru, Mysuru, Shivamogga, and Tumakuru, aided by initiatives such as the ‘Beyond Bengaluru’ programme, added Chandnani.
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