In Short:
The real estate market in South India is growing rapidly, with leasing activities in cities like Chennai, Bengaluru, Kochi, and Hyderabad driving this growth. Bengaluru is expected to lead the way, with the largest office space expansion in India by 2030. Retail is also thriving, supported by infrastructural developments like new metro lines and improved airport access. This success is expected to benefit nearby cities as well.
The South Real Estate Market Poised for Growth
Exciting news for Chennai, Bengaluru, Kochi, and Hyderabad as the real estate market in the South gears up for substantial growth. Ram Chandnani, Managing Director of Advisory & Transactions Services at CBRE India, credits this growth to advancements in education, infrastructure, cost of living, and rental rates.
Bengaluru Gears Up
In particular, Bengaluru is making waves in the real estate sector. According to a report released by CBRE and the Confederation of Indian Industry (CII), the city is set to dominate the office and retail sectors by 2030. Office spaces are projected to expand to a whopping 330-340 million sq. ft., making it the largest in India. The city also boasts the highest office absorption rate in the country, with technology, engineering & manufacturing, and BFSI sectors driving the demand.
On the retail front, Bengaluru has seen exponential growth, doubling in size since 2013 and now spanning over 16 million sq. ft. The growth is fueled by industries such as fashion, entertainment, and food & beverage, along with the development of new malls and increasing consumer spending power.
Infrastructural Development
This real estate boom in Bengaluru is not happening in isolation. The city’s growth is supported by key infrastructural developments, including new metro lines and improved airport access. Efforts are also underway to enhance connectivity in the north, focusing on areas like Hebbal-Bellary Road. Initiatives such as the Bengaluru Business Corridor and Satellite Town Ring Road are also in the pipeline.
Beyond Bengaluru
The success of Bengaluru is expected to have a ripple effect on nearby emerging cities like Belagavi, Hubli-Dharwad, Mangaluru, Mysuru, Shivamogga, and Tumakuru. Initiatives like the ‘Beyond Bengaluru’ programme are further set to boost the growth in these areas. The Southern real estate market is definitely one to watch!
