Amazon India is moving its corporate headquarters from the World Trade Centre at north-west Bengaluru to the city's outskirts, a 15-minute drive away from the airport as a part of a cost cutting exercise, according to a Mint report.

The reason for the move is that, at the new location, the e-commerce giant would pay less than one-third of the ₹250 per square foot rent it currently pays for the nearly half a million square feet of office space it occupies at the World Trade Centre.

The relocation will start in April 2025 and get completed by April 2026, according to the report.

Current Office and Employee Concerns

Amazon's current office is housed in a 40-acre complex with over 1,200 residential flats, a shopping complex, a five-star hotel, a hospital, and a school, alongside other facilities such as a club and a jogging track.

As a result, many of Amazon's 5,000 employees were encouraged to reside nearby, with Amazon staff occupying a quarter of the apartments within the complex. Now, they are dissatisfied with the company's decision to relocate 20 km away to the new office, as commuting through the city to reach the new location will take more than 80 minutes during daytime hours.

"This was an abode - a safe and quiet neighbourhood, schools for our children, a mall and dining out places," the report quoted an executive who has been with Amazon for six years. "We'll have to look at another house close to the office, as driving from here is ruled out."

Future Office Details

The planned relocation is to a building owned by Sattva, part of the Salarpuria group, a Kolkata-based privately-held real estate developer. The rent at the new location, a property owned by the Sattva Group, is reportedly less than one-third of the Rs 250 per square foot Amazon pays at WTC.

The new office is located about 20 kilometres from WTC and is around a 15-minute drive from Bengaluru Airport, depending on traffic. However, the area currently lacks metro rail connectivity, which could pose challenges for commuting.

Relocating to the new office near the airport could impact employee commuting times. Despite plans to improve metro connectivity in the airport corridor, the current lack of public transport options might make commuting more difficult.

Impact on the Real Estate Market

The World Trade Centre and surrounding areas in north-west Bengaluru may see a decline in demand as many Amazon employees consider moving closer to the new office. This could lead to decreased property values or increased availability of rental properties in the region.

Brigade Enterprises may face difficulties finding a new tenant for the extensive WTC office space.

The office move to a building owned by Sattva could trigger interest from other businesses considering relocation or expansion, leading to competition for commercial space in the vicinity.

The area near the new headquarters, being on the city outskirts, is likely to experience a surge in demand for residential properties. This could push up property prices and rental rates as employees seek housing closer to work.