Bengaluru, January 23, 2026 – The Bangalore Development Authority (BDA) is pushing forward with a major redevelopment initiative to revitalize seven of its outdated commercial complexes across prime city locations. The project, executed through public-private partnerships (PPP), aims to transform these once-popular but now neglected hubs into modern mixed-use spaces featuring showrooms, retail outlets, and office areas.

Decline of Traditional BDA Complexes

Established between the late 1970s and early 1990s, BDA complexes in areas like Indiranagar, Koramangala, HSR Layout, Sadashivanagar, R.T. Nagar, Vijayanagar, and Austin Town originally served as vibrant local commercial centers. They housed small shops, banks, restaurants, government offices, and community services within planned residential layouts.

Over decades, poor maintenance, outdated infrastructure, and failure to adapt to Bengaluru’s rapid urban growth led to declining occupancy, illegal activities in some spots, and overall deterioration. Many complexes became underutilized, prompting long-standing calls for renewal.

Redevelopment Plan and Key Details

In a recent update, the BDA awarded redevelopment rights for the seven complexes to private developers under 30-year lease agreements with revenue-sharing models. Maverick Holdings (or Embassy Maverick Malls Ltd in related reports) is handling the Indiranagar complex, while MFAR Developers (in consortium with partners) is overseeing the remaining six: Sadashivanagar, R.T. Nagar, Vijayanagar, Koramangala, HSR Layout, and Austin Town.

The redeveloped properties will feature a blend of showrooms and office spaces, with increased floor area ratio (FAR) to maximize efficient land use. Developers will invest in modern infrastructure, and revenue from operations will be shared— examples include 35% to one developer and 30% to another, ensuring steady income for the BDA while turning loss-making assets into revenue generators.

As of late 2025, redevelopment had commenced at four sites (Indiranagar, R.T. Nagar, Sadashivanagar, and Vijayanagar), primarily at the demolition stage, with Koramangala and others to follow after stakeholder negotiations.

Broader 2026 Commercial Real Estate Trends in Bengaluru

Bengaluru continues to lead India’s commercial real estate market in 2026, driven by its status as the country’s top IT and GCC hub. Key trends include:

• Tenant-Driven Upgrades: Occupiers increasingly demand Grade A offices with smart infrastructure, sustainability features (e.g., green-certified buildings), flexible layouts, and ESG compliance. Many older properties are being retrofitted or redeveloped to meet these preferences.
• Smart Infrastructure Focus: New developments emphasize tech-integrated buildings, energy efficiency, and future-ready amenities to attract premium tenants amid rising corporate leasing.
• REITs Boosting Liquidity: Real Estate Investment Trusts (REITs) are gaining traction, democratizing access to commercial assets by allowing investors to gain exposure to high-quality office and retail spaces without direct ownership. This supports liquidity and institutional investment in the sector.

Major micro-markets like the Outer Ring Road (ORR), Whitefield, Koramangala, and North Bengaluru report strong occupancy rates, low vacancy (around 8-10%), and robust absorption of 8-10 million sq ft annually in commercial segments. Redevelopment projects like the BDA’s align with city-wide efforts to modernize urban spaces and unlock prime land potential.

While the initiative promises enhanced commercial vibrancy and revenue for the BDA, past proposals faced protests over concerns like tenant displacement, higher rents, tree felling, and limited public consultation. Ongoing stakeholder engagement remains key to smooth progress.

This redevelopment underscores Bengaluru’s evolving real estate landscape, where public assets are being repositioned to support the city’s dynamic growth in 2026 and beyond.

  bda, Commercial Complexes