BENGALURU: The commercial real estate market in Bengaluru is entering a more advanced stage, driven by factors such as office absorption quality, employee experience, sustainability, and tech-oriented asset management, industry experts noted on Tuesday.
The insights were shared during the RealtyDailyNews Realty & Beyond Summit Bengaluru, focusing on the future dynamics of the city’s commercial real estate sector.
The panel featured Shirish Godbole, CEO of Knowledge Realty Trust; Hugh Andrew, CEO of Bagmane Prime Office REIT; Sanjay Gulati, Co-Managing Director & Principal at Gensler; Chirag Boonlia, Chief Technology Officer of Embassy Group; and Gaurav Bhatia, EVP – Asset Management at Brookfield Properties in South & West India. Ramita Arora, EMD, Bengaluru & Head – Flex, India, Cushman & Wakefield, moderated the session.
Setting the stage, Arora emphasized Bengaluru’s significant contribution to India’s commercial real estate activities, including office leasing, flexible spaces, and demand driven by Global Capability Centers (GCCs). She reported that nearly 30% of India’s commercial real estate, flexible activity, and GCC entries are tied to Bengaluru, establishing the city as one of the foremost office markets in the country.
Developers and asset managers remarked that the next demand phase will largely stem from global capability centers, as multinational corporations begin to leverage India not just for back-office tasks but also for product development, cybersecurity, R&D, and strategic decision-making.
“India stands as the leading market for global capability centers, and this acceptance is rapidly increasing,” stated Shirish Godbole, mentioning that many multinational firms continue to evaluate India for their GCC establishment.
He noted that demand is robust due to India’s blend of talent, scale, an English-speaking workforce, and cost effectiveness. In addition, AI has enhanced India’s importance, prompting global firms to closely integrate their India-based teams with front-office and innovation roles.
“India is no longer just perceived as a back-office hub; we are now in the forefront,” said Godbole.
Hugh Andrew remarked that the GCC demand in India has considerable potential for growth, as numerous global occupiers have yet to establish a substantial foothold in the country. He emphasized the industry’s need to adapt by developing improved infrastructure and supportive environments around commercial areas.
“Currently, 35% of the global GCC presence is rooted in India, indicating a 65% growth opportunity,” Andrew added.
The panelists also highlighted evolving occupier expectations. Modern companies now assess offices not only on rent, layout, or scalability but also on connectivity, amenities, sustainability, air quality, flexibility, and the ability to attract and retain talent.
Sanjay Gulati remarked that contemporary workplaces are designed around lifestyle and human experiences rather than mere efficiency.
“Workspaces should be more than just places to work; they should facilitate lifestyle and human interaction,” he stated.
He stressed that modern office campuses must cater to the needs of employees, visitors, and families, especially in suburban regions with limited social infrastructure.
“It’s not just a glass box where individuals commute to work and return home; they seek a lifestyle throughout the day,” Gulati commented.
Technology is increasingly central to the design, construction, and operation of commercial properties. Chirag Boonlia remarked that tenant experiences are being transformed through hyper-personalization, data, and digital infrastructure.
“If I were to claim that Embassy is no longer merely a real estate firm but rather a technology-driven enterprise, the physical aspect would be the real estate,” Boonlia explained.
He added that technology influences tenant experience, facility management, air quality, security, and social infrastructure, positioning it as a key component of future-ready office spaces.
Gaurav Bhatia noted that AI and integrated building systems are transitioning asset management from a reactive to a proactive approach.
“AI facilitates a significant evolution from reactive asset management to proactive management,” he stated.
He mentioned how machine learning and IoT-enabled systems assist developers in establishing real-time operational frameworks that enhance efficiency, resilience, sustainability, and tenant experiences.
The panelists also pointed out that the Bengaluru office market is experiencing a scarcity of relevant Grade-A spaces, as tenants are increasingly requesting newer buildings that meet global standards and offer robust amenity ecosystems. Consequently, older properties may require repositioning, upgrades, or redevelopment to remain competitive.
Regarding sustainability, Andrew stressed that ESG and carbon management have become critical to office real estate, driven by regulatory pressures, ethical standards, and tenant expectations.
“It’s vital to consider the needs of all stakeholders – communities, employees, customers, government, and investors,” he noted.
The discussion underscored that infrastructure is vital for Bengaluru’s commercial growth. Bhatia highlighted that tenants now evaluate how well an asset integrates with existing and upcoming urban infrastructure.
“Corporate tenants prioritize both workplace and commute efficiency,” he noted.
The overall takeaway from the panel was that while Bengaluru’s commercial leadership is strong, the next growth cycle will necessitate better alignment across office supply, infrastructure, sustainability, and employee-focused designs. As GCCs expand their footprint in India, Bengaluru’s capacity to provide future-ready, transit-connected, and experience-oriented office spaces will dictate the trajectory of its next commercial real estate phase.
