Bengaluru emerges as key economic and real estate hub: Knight Frank Report

Bengaluru has solidified its position as a top-tier city in India, excelling in socio-economic performance and maintaining a dynamic real estate market, according to the latest India Prime Index by Knight Frank.

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Socio-Economic Excellence

Ranked second after Hyderabad, Bengaluru boasts the highest workforce participation rate and the lowest unemployment rate among the top six cities studied. Its residential real estate sector has witnessed a historic surge, with sales reaching 54,046 units in 2023, marking a nine-year high.

Leader in Commercial Real Estate

Dominating India's office market, Bengaluru accounted for 21% of all commercial transactions across major cities in 2023. Over the past five years, the city added 66.3 million square feet of office space—the highest in India. Office leasing volumes surpassed a decade-long average, reaching 12.5 million square feet in 2023. Bengaluru also recorded the highest IT services transaction volume at 24.17 million square feet during 2019–2023, reinforcing its role as a technology hub.

A Global Investment Contender

With a skilled workforce, robust service sector, and thriving entrepreneurial ecosystem, Bengaluru is poised for sustained growth. While Hyderabad presents strong competition, Bengaluru remains a cornerstone of India’s economic and real estate landscape.

Key Comparative Insights (2019–2023):

• IT transaction volume: Bengaluru leads with 24.17 million sq. ft., outpacing Hyderabad (17.42 mn sq. ft.) and Delhi-NCR (9.04 mn sq. ft.).
• Office stock addition: Bengaluru tops at 66.3 million sq. ft., followed by Hyderabad (41.9 mn sq. ft.) and Delhi-NCR (34.9 mn sq. ft.).
• Office transactions CAGR: Bengaluru ranks first at 13.4%, reflecting stable demand and leasing activity.