Bengaluru is one of the best city in India for Commercial Real Estate Investment. This bustling tech hub accounts for over a third of India's total annual office space absorption, making it one of the country's premier destinations for those seeking office, retail, or industrial assets. With robust demand drivers, strong market fundamentals, and attractive yields, commercial real estate in Bangalore offers savvy investors exceptional opportunities. Main key drivers of demand are companies operating in IT/ITeS, Automobile, Hardware, Electronics, BFSI, Defense and others.

Few important factors while identifying best commercial real estate investment in Bangalore includes micro-market, Grade of the property (quality), Tenant’s profile, lease terms, construction status and return.

The key micro-markets most attractive for office space includes, CBD, SBD (Old Airport Road, Indiranagar, Koramangala, Yeshwanthpur, and HSR), ORR (Hebbal to SilkBoard Junction) & Sarjapur Road, and, Bangalore North.

It is advisable to invest in Grade A properties as it attracts good tenants, developed by good developers, and also developed as per local regulations. These commercial properties in Bengaluru are also maintained very well. One can invest in either ready or under construction properties as supply for sale is limited therefore ready and leased properties are very few available.

The rental yield for investment in these commercial properties varies between 6% and 8% in CBD, SBD and ORR regions for Grade A properties whereas Peripheral locations of Whitefield, Electronics City and Bangalore North (beyond Yelahanka) offers rental yield of 8% to 9% based on lease and construction status of the project.