Amazon seizes north Bengaluru's skyline: Snags entire Sattva Horizon building, propelling demand
Amazon secures a significant office space of over 1 million square feet in northern Bangalore, shelling out an impressive ₹6.1 crores in monthly rent.
Amazon's recent gigantic office space grab in north Bengaluru has left the city buzzing. The Amazon Development Centre India and Amazon Seller Services have landed a jaw-dropping deal, securing over 1 million sq ft of prime real estate in Kattigenahalli, leaving no stone unturned at a whopping monthly rent of ₹6.1 crores, as relayed by data analytics firm Propstack.
Prepared to house a workforce of over 6,000-7,000 employees, the 11-story complex is strategically located approximately 25 minutes from the Kempegowda International Airport. This strategic position makes the building a beacon in the bustling cityscape, with Amazon seizing the entire building.
The lease commenced on October 9, 2024, and is valid for an impressive 10-year span. The e-commerce titan will pay ₹62.04 per sq ft for the carpet area of 7.14 lakh sq ft, with a chargeable area of 9.86 lakh sq ft. The contract features a 15% rent escalation clause every three years, and no upfront deposit is required.
Navigating through the nuances of this colossal transaction, real estate experts predict a surge in demand for office spaces in the region. Emails have been flung to Amazon, and response, once received, will be published here. Sattva Group, the property owners, remained tight-lipped regarding the deal's specifics.
Kattigenahalli: A haven for commerce and development
Amidst the hustle and bustle of Bengaluru's commercial landscape, Kattigenahalli stands out as a prime location with robust infrastructure. This micro-market has established itself as a mature residential and commercial hub, boasting high rental demand. The average rent for a 2BHK apartment currently hovers around ₹20,000- ₹25,000 monthly, with an annual rental appreciation averaging an impressive 10-15%. New residential projects in the area offer 2BHK units ranging from ₹80 lakh to ₹1 crore.
From an investment angle, the yield on residential properties hovers between 3-4% annually, thanks to proximity to renowned educational institutions and the Yelahanka Air Force Base. On the commercial front, returns are even stronger, with an annual ROI of about 6%. Ground-floor commercial spaces command rents of ₹80- ₹100 per sq ft.
Investment in tomorrow
With Amazon now a significant presence in the area, expect to see a continuing surge in real estate demand. The market's potential growth could turn investors' heads, as both commercial and residential spaces promise tangible returns.
Real estate experts are keeping a close eye on the ripples this Amazon-led revolution will create, whilst also keeping in mind the challenges that might arise in managing traffic flow, maintaining environmental sustainability, and ensuring adequate housing. Strategic planning will be key to navigating these challenges and capitalizing on the opportunities that this growing presence will no doubt bring.
In a broader context, similar transactions by tech giants continue to reshape India's real estate landscape. This trend serves as a testament to the nation's potential and stands as a beacon of growth and innovation, attracting a myriad of businesses seeking to establish a foothold in this dynamic market.
[1] https://en.wikipedia.org/wiki/Bengaluru[2] https://www.economictimes.com/news/bengaluru/it-cos-leasing-deals-continue-to-drive-office-market-growth-in-bengaluru/articleshow/91445574.cms[3] https://www.indiatoday.in/education-today/news/story/bangalore-assured-of-major-infrastructure-push-1581925-2018-10-17[4] https://www.business-standard.com/article/current-affairs/amazon-loves-bengaluru-raises-stakes-buys-rupee-700-crore-office-space-in-the-city-132837-nsdm1j-1.html[5] https://www.livemint.com/industry/commerce/flexible-workspaces-a-hit-as-startups-demand-more-room-for-growth-1547900144692.html
- The surge in demand for office spaces in Kattigenahalli triggered by Amazon's massive real estate transaction could potentially attract international finance towards Indian business ventures.
- As India stands as a beacon of growth and innovation, major real estate developments, like Amazon's acquisition of the Sattva Horizon building, attract global technology companies seeking a foothold in its dynamic market.
- The strategic position of Kattigenahalli, with its robust infrastructure, makes it a prime location for real estate investments, especially in education and technology-focused businesses.
- In light of Amazon's increasing presence, real estate experts are exploring the impact on infrastructure and education sectors, ensuring the city maintains sustainability while embracing economic growth.
- The colossal transaction between Amazon and the Sattva Group might prompt changes in the real estate landscape of India, driving demands for office spaces and raising questions about the management of infrastructure and housing to accommodate the expansion in the technology sector.
