Asia Pacific Office Outlook 2024

BENGALURU

K E Y M E S S AG E S

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 2023 is likely to witness net absorption of around 7.5 msf, which is lower than that in 2022.  Net absorption is likely to witness strong recovery (yearly average of 12-13 msf) in 2024 and 2025 on the back of healthy deal pipeline, positive economic outlook and stronger office space uptake.  City vacancy is expected to be somewhat elevated in 2024 and 2025 owing to high volume of supply.  Certain prime submarkets have recorded higher vacancy and are gradually

 Bengaluru is likely to witness supply of around 12 msf in 2023.  ~31 msf of total supply is expected to be completed during 2024–2025, with the Outer Ring Road submarket being the major (~40%) contributor.  Beyond 2025, average annual supply is expected at 11–13 msf.

 Rents remain largely range bound during 2022 and 2023.  Foreseeable pick-up in demand and flight-to quality to result in marginal rise in rents from 2024 despite consistent supply coming in.  Upward rental movement will take rents closer to INR 1180 sf/yr by end 2026.

 For most tech firms and GCCs, Bengaluru continues to offer a good ecosystem, thereby enabling the city to capture a healthy share of demand. Growing economic activity and India's rising

contribution towards enablement of digital

adoption will help the city's office market momentum in the near-to medium-term.

attaining a tenant favourable status.