Bengaluru’s North-West Corridor poised for massive commercial expansion by 2030

A comprehensive study by Brigade Group and Meraqi Advisors has revealed that Bengaluru’s North-West Corridor is set for a major commercial transformation. The region, particularly along Tumkur Road, is projected to witness a commercial stock increase of 16 to 19 million sq. ft. by 2030, driven by infrastructure growth and rising corporate demand. Additionally, the area is expected to see an incremental demand of 5 to 8 million sq. ft. of commercial space, positioning it as one of the fastest-growing Secondary Business Districts (SBDs) in the city.

According to the study, this growth is fueled by the area’s strategic connectivity to major infrastructure projects, including the Peripheral Ring Road (PRR) and the Bengaluru–Mumbai Industrial Corridor (BMIC). The expansion of the Namma Metro and other transportation developments has further boosted the region’s attractiveness to investors and businesses.

North-West Bengaluru’s Residential Market Set for Expansion

Alongside commercial development, the region’s residential sector is also witnessing rapid expansion. The study predicts that by 2030, an additional 10,000 residential units will be required to meet the growing demand. This surge is being driven by Grade A real estate developments, which have been on the rise in the past five years.

Real estate experts note that North-West Bengaluru offers a more affordable alternative to Hebbal and the city center, making it an attractive option for homebuyers and businesses alike. Limited availability of premium office space in these central locations has led to increased interest in the North-West Corridor, where demand for Grade A office spaces continues to surge.

Booming Office Market with High Demand for Grade A Spaces

Industry leaders emphasize that office space absorption in Bengaluru has reached new highs, and this trend is now extending to North-West Bengaluru. The area has seen significant commercial development activity, particularly in flexible office spaces and managed office solutions.

Nirupa Shankar, Joint Managing Director of Brigade Enterprises Limited, stated that Bengaluru’s Grade A office market saw 12.5 million sq. ft. of flex space absorption in 2024, marking a 45% year-on-year increase. She highlighted that Brigade’s flexible office solution, BuzzWorks, has leased nearly 100,000 sq. ft. of managed office seats in the past six months alone.

The region’s evolving socio-economic profile has also contributed to its commercial growth. With a population of 1.16 million, North-West Bengaluru has seen a threefold increase in healthcare, retail, and office facilities over the last five years. Between 2018 and 2024, total office space in the area expanded from 2 million sq. ft. to 5.13 million sq. ft., with an annual absorption rate of 400,000 to 500,000 sq. ft.

Brigade Enterprises’ Market Position and Stock Performance

The expansion in North-West Bengaluru comes at a time when Brigade Enterprises Limited (NSE: BRIGADE) is navigating market volatility. As of March 30, 2025, the company’s stock was trading at ₹976.65, reflecting a 1.84% decline from the previous close of ₹995.00. Over the past year, the stock has fluctuated between ₹908.25 and ₹1,453.10, indicating significant market movement.

Analysts highlight that Brigade Enterprises has a market capitalization of ₹23,867 crore and is currently trading at a P/E ratio of 37.4, suggesting a premium valuation. The company’s return on equity (ROE) of 9.36% indicates moderate profitability, while its dividend yield of 0.20% remains modest compared to industry peers.

Despite recent declines, the company remains optimistic about its future, particularly following the launch of Brigade Altius, a ₹1,700 crore residential project in Chennai‘s IT corridor. The announcement of this project led to a 3.8% increase in Brigade Enterprises’ share price, signaling positive investor sentiment toward the company’s expansion strategy.

Industrial and IT Growth Driving Job Market Expansion

The North-West Corridor is uniquely positioned near key industrial hubs such as Peenya Industrial Area, Nelamangala Industrial Area, and Dabaspet Industrial Area, making it a hotspot for employment growth. The region has witnessed significant job market expansion, with the IT/ITeS sector leading, followed by consulting, engineering, and financial services.

A breakdown of current office occupiers shows that 58% are service providers, 31% belong to the IT/ITeS sector, 7% are in the BFSI (Banking, Financial Services, and Insurance) sector, and 4% represent other industries. Recent leasing data reveals a strong preference for smaller office spaces, with 58% of recent transactions ranging between 2,500 to 10,000 sq. ft. Meanwhile, 25% of transactions involved mid-sized offices of 10,000 to 15,000 sq. ft., and 17% comprised larger office formats of 55,000 sq. ft.

Investment Outlook: Buy, Sell, or Hold?

Market analysts are largely bullish on Brigade Enterprises, with six analysts rating it a “Strong Buy” and five recommending a “Buy.” However, while the company’s strategic expansion and improved efficiency are positive signs, some concerns remain.

Brigade’s ongoing projects, such as Brigade Altius, signal continued growth, while the company maintains a healthy dividend payout ratio of 22.6%. Operational efficiency is also improving, with debtor days reducing from 49.2 to 37.2. However, trading at 4.63 times its book value, the stock appears overvalued. Additionally, Brigade’s ROE of 7.30% over three years suggests challenges in maximizing shareholder returns, and revenue growth has declined by 8.35%, raising short-term financial concerns.

Given these factors, a Hold recommendation is advised for Brigade Enterprises. While the company’s expansion in North-West Bengaluru and beyond presents strong long-term potential, high valuations and recent revenue declines suggest caution. Investors should monitor the stock closely before making new commitments.

Infrastructure & Connectivity Are Key Growth Catalysts

A major driver of North-West Bengaluru’s growth is its excellent connectivity. The area benefits from the Namma Metro expansion, which improves access to the city’s business districts. Elevated expressways have reduced travel time to central Bengaluru, while the upcoming Peripheral Ring Road (PRR) will further enhance connectivity to key business hubs. Proximity to the Bengaluru–Mumbai Industrial Corridor (BMIC) is also attracting industrial investments.

Real estate developers emphasize that land values in the region are projected to appreciate at an average of 10% per year, making it an attractive destination for long-term investors. Residential property prices in the corridor have already grown at a 7% compound annual growth rate (CAGR) over the past decade.

Brigade Group’s Expanding Presence in North-West Bengaluru

Recognizing the potential of this fast-growing corridor, Brigade Group has been actively investing in the region. The company has developed Brigade Twin Towers, a Grade A office campus spanning 12.95 acres, featuring over 50% open green spaces and IGBC Gold pre-certified sustainability features.

Nirupa Shankar highlighted that North-West Bengaluru is emerging as a key hub for office spaces. With established infrastructure, robust public transportation, and a growing talent pool, the region is set to attract global companies. With the continued rise of commercial and residential real estate activity, North-West Bengaluru is well on its way to becoming one of the city’s most sought-after business and residential destinations by 2030.