Aerospace and defence real estate in Bengaluru is witnessing strong momentum, aligned with India’s rapid A&D growth. In FY24, the country handled ~376 million air passengers (+13.5% YoY) with demand for 2,200+ new aircraft projected by 2042, while defence production touched ₹1,27,000 crore (US$17.6 billion)—a 174% rise since 2014-15. Backed by ISRO missions, expanding MRO services, and component manufacturing, this growth is driving demand for advanced infrastructure, R&D hubs, and industrial clusters. Valued at US$26.5 billion in 2024, India’s A&D market is set to nearly double to ~US$55 billion by 2035, signalling a structural transformation in the real estate ecosystem supporting it.
Bengaluru, the nation’s A&D capital, contributes over 60% of India’s exports and hosts the largest aerospace cluster with HAL, DRDO, ISRO, and 2,000+ MSMEs leading innovation. Global majors such as Airbus, Boeing, and RTX Technologies have established engineering hubs here, drawn by its talent pool and innovation ecosystem. With dedicated aerospace parks and supportive state policies, the city continues to drive indigenization and global supply chain integration.
This report examines Bengaluru’s aerospace and defence real estate ecosystem through the lens of real estate development—a critical enabler of industrial growth. It provides insights on:
- Site selection for aerospace clusters and defence manufacturing
- Specifications for built-to-suit R&D and factory spaces
- Cost benchmarks, land values, and high-demand corridors
- Infrastructure, connectivity, and policy enablers
- Key challenges and recommendations for developers and investors
By integrating sector growth dynamics with strategic real estate intelligence, stakeholders can make future-ready investment and development decisions in Bengaluru’s aerospace and defence real estate.
