Amazon India to Relocate Bengaluru HQ for Cost Efficiency

Amazon India is planning to move its Bengaluru headquarters from the World Trade Centre (WTC) in Malleswaram to a new location near the city’s airport by 2026, according to a report by LiveMint. The move is part of a cost-cutting strategy that will vacate 500,000 square feet of office space spread across 18 floors at WTC, owned by Brigade Enterprises Ltd.

The upcoming office will reportedly be situated on a property owned by Sattva and roughly 15 minutes from Bengaluru Airport. The rent at this new location is expected to be less than a third of the ₹250 per square foot currently paid at WTC. The transition is scheduled to begin in April 2025 and be completed by April 2026. While Amazon promises state-of-the-art facilities at the new site to improve employee collaboration and experience, specific details are yet to be disclosed.

Despite these plans, Brigade Enterprises has clarified that Amazon has not yet terminated its lease at WTC. Reports suggest that Amazon may have considered additional space on Bellary Road but continues to honour its agreement at WTC for now. The WTC location, part of the 40-acre Brigade Gateway complex, includes a mall, hospital, hotel, school, and residential flats, making it suitable for employees.

The relocation raises concerns about employee commutes, as the new office is approximately 20 kilometres from WTC. With Bengaluru’s infamous traffic, travel times could exceed 1 hour 20 minutes during peak hours. Also, the airport area currently lacks metro connectivity, though infrastructure projects are in the pipeline.

Amazon’s decision may impact the city’s real estate dynamics. Brigade Enterprises may face challenges finding a new tenant for the vacated WTC space, potentially impacting residential rental demand in the area. However, the relocation could also boost the airport corridor as an emerging commercial hub, joining companies like Infosys, Boeing, and Foxconn, which are already expanding there. While the move aims to reduce operational costs, its long-term effects on employees, real estate, and Bengaluru’s commercial landscape will unfold over time.