Amazon India to relocate Bengaluru HQ for better cost efficiency: Report

Amazon India is set to relocate its headquarters in Bengaluru from the World Trade Centre (WTC) to a new office near the city’s airport, according to a report by LiveMint. This move aims to reduce costs by vacating 500,000 square feet of office space across 18 floors at WTC, owned by Brigade Enterprises Ltd. Concerns have been raised about finding new tenants for this large space and its impact on nearby residential property rentals.

According to the report, the new office will be situated on a Sattva-owned property, approximately a 15-minute drive from Bengaluru Airport. Citing sources, the report claims that the rent at the new location will be less than one-third of the ₹250 per square foot currently paid at WTC. The relocation is scheduled to commence in April 2025 and expected to conclude by April 2026. A company spokesperson mentioned that the new campus will have state-of-the-art facilities to enhance collaboration and employee experience, but no further details were provided.

However, Brigade Enterprises has stated that Amazon has not yet ended its lease at the WTC. According to the report, a representative mentioned that Amazon could have opted for additional space in a development on Bellary Road but continues to uphold its lease agreement at WTC. Brigade Gateway, where WTC is located, is a 40-acre integrated complex with a mall, hospital, school, hotel, and over 1,200 residential flats. The location has been convenient for Amazon employees, many of whom reside in the complex.

The new office is approximately 20 kilometres from the current WTC site in Malleswaram. Commuting through Bengaluru’s heavy traffic could take over 80 minutes during peak hours. The area near the airport lacks metro rail connectivity, though plans for improvement are in progress.

Amazon’s relocation could influence Bengaluru’s real estate market. Brigade Enterprises might face challenges finding a new tenant for the large office space, potentially reducing demand for residential rentals near WTC. Conversely, the move could bolster the airport corridor as a commercial hub, with companies like Infosys, Boeing, and Foxconn already investing in the area. The effects of this relocation on employees, Brigade, and the city’s property market will become clearer in the future.