As Amazon plans its big move, to relocate its headquarter it can have a major impact on commercial and residential real estate dynamics in Bengaluru.
Amazon India is set to relocate its headquarters from the World Trade Centre (WTC) in Bengaluru to a new office on the city’s outskirts, aiming to significantly cut down on costs. This move involves vacating nearly 500,000 square feet of office space across 18 floors of the WTC building, owned by Brigade Enterprises Ltd. The decision has raised concerns about how Brigade will find a new tenant for such a large space and the potential impact on rental income of nearby residential properties.
Why Amazon Decides To Shift?
According to two Amazon executives, the new office will be located in a Sattva-owned property, about a 15-minute drive from Bengaluru Airport. The rent for the new location is expected to be less than a third of the current rate of nearly ₹250 per square foot that Amazon pays at WTC. The relocation process is set to begin in April 2025 and is expected to be fully completed by April 2026.
A spokesperson for Amazon confirmed the upcoming move, stating, “At Amazon, we continually evaluate options that align with our business strategy and take actions to bring the best value for our employees and customers. We are excited about our new campus, a state-of-the-art facility designed to foster enhanced collaboration and deliver an unparalleled employee experience.” However, the spokesperson did not provide further details.
Brigade Enterprises On Amazon’s Move
According to media reports, Brigade Enterprises clarified that Amazon has not yet ended its lease agreement for the WTC office. A spokesperson for Brigade mentioned, “Amazon could have opted for additional space in a development on Bellary Road (Airport Road), but there is certainly no termination of our existing lease agreement with them in the World Trade Centre, Bangalore, or our ongoing engagement.”
Amazon’s current office is located in Brigade Gateway, the city’s first integrated complex, which spans 40 acres and includes over 1,200 residential flats, a shopping mall, a five-star hotel, a hospital, and a school. This setup has been highly convenient for Amazon’s employees, many of whom live in the complex. Approximately a quarter of the residential flats are occupied by the 5,000 Amazon employees working at the WTC office.
The new Sattva campus is about 20 kilometers away from the current office in Malleswaram, and the drive through Bengaluru’s infamous traffic could take more than 80 minutes during peak hours.
Impact on Bengaluru’s Real Estate Market
The airport corridor in Bengaluru has emerged as a new growth driver, attracting investments from companies like Boeing, Infosys, and Foxconn. However, it is currently not connected to the metro rail, though plans for future connectivity are in progress. Unlike the tech hubs in Whitefield and Sarjapur, the northwestern area of Malleswaram, where WTC is located, has fewer office spaces. This could pose a challenge for Brigade Group in finding new tenants for the soon-to-be-vacant office floors, potentially impacting the demand for residential flats in the surrounding complex.
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