Bengaluru continues to maintain its position as India's leading office leasing market in 2026, supported by demand from the IT sector, Global Capability Centres (GCCs) and startups. The city's commercial real estate market is characterised by substantial office stock, continued leasing activity, and growing interest in flexible workspaces.
The Bengaluru Market Overview Q3 2026 by Address Advisors provides insights into the city's office market performance, micro-market dynamics, rental trends, infrastructure developments and key leasing transactions. This report offers a structured view of the commercial real estate landscape to help businesses, investors, occupiers and property stakeholders evaluate market opportunities.
Bengaluru Commercial Real Estate Market Snapshot
Bengaluru's office market recorded the following key indicators in Q3 2026:
- Total office stock: 252.8 million sq. ft.
- Overall vacancy rate: 11.2%
- New supply: 8.61 million sq. ft.
- Gross absorption: 5.4 million sq. ft.
- Net absorption: 3.9 million sq. ft.
The report highlights Bengaluru's continued strength in office leasing, with demand supported by technology companies, GCCs and startups. Flexible workspaces are also gaining traction, contributing to the city's commercial real estate activity.
Bengaluru Office Market: Key Trends and Insights
Conventional and Flexible Workspace Demand
Conventional office spaces accounted for 82% of the reported leasing activity, representing 4.42 million sq. ft. Flexible workspaces accounted for the remaining 18%, equivalent to 0.97 million sq. ft.
This distribution highlights the continued importance of conventional office spaces alongside the growing presence of flexible workspace options in Bengaluru's commercial property market.
Sector-Wise Leasing Activity
The report identifies IT-BPM and Banking, Financial Services and Insurance (BFSI) among the key sectors contributing to office leasing demand.
- IT-BPM: 34%
- BFSI: 28%
These sectors form an important part of Bengaluru's office market, reflecting the city's established technology and financial services ecosystem.
Bengaluru Office Market: Micro-Market Overview
Bengaluru's office market comprises several established business districts and peripheral markets, each with distinct stock levels, vacancy rates, new supply and net absorption.
The Q3 2026 report covers the following micro-markets:
- Central Business District (CBD): MG Road, Richmond Road, Infantry Road, Cunningham Road, Sankey Road, Palace Road and Vittal Mallya Road.
- Secondary Business District (SBD): Koramangala, CV Raman Nagar, Indiranagar, Old Airport Road, Old Madras Road, Bannerghatta Road, JP Nagar, Jayanagar and Rajajinagar.
- SBD Outer Ring Road (ORR): The Silk Board to Hebbal corridor.
- Peripheral Business District East (PBD East): Whitefield and Brookfield.
- Peripheral Business District North (PBD North): Bellary Road, Thanisandra Road, Tumkur Road and the Hebbal to Yelahanka corridor.
- Peripheral Business District South (PBD South): Electronic City and Hosur Road.
Micro-Market Statistics
The report presents the following office market indicators for key Bengaluru micro-markets.
|
Micro-market |
Stock (million sq. ft.) |
New Supply (million sq. ft.) |
Vacancy |
|
CBD |
13.08 |
0.08 |
3.1% |
|
SBD City |
40.7 |
1.38 |
20.6% |
|
SBD ORR |
106.7 |
3.69 |
7.4% |
|
PBD East |
60.09 |
3.23 |
11.9% |
|
PBD North |
18.24 |
0.23 |
22.4% |
|
PBD South |
14.0 |
Not reported |
6.8% |
These figures provide a comparative view of office stock, new supply and vacancy across the city's business districts. Businesses evaluating office locations can use these indicators as a starting point for understanding the distribution of commercial real estate across Bengaluru.
Major Office Leasing Transactions in Bengaluru
The Q3 2026 report highlights significant office leasing transactions across Bengaluru's commercial micro-markets.
Selected transactions include:
- HSBC: 1,200,000 sq. ft. — ORR, Prestige JRC Signature Towers.
- Uber: 1,154,300 sq. ft. — Marathahalli, Prestige Lakeshore.
- Infineon: 632,000 sq. ft. — Whitefield, Bagmane Solarium.
- TVS Motor: 529,500 sq. ft. — Hebbal, CapitaLand Gardencity.
- Cognizant: 565,000 sq. ft. — ORR, RMZ Ecoworld.
- Blackstone COE: 452,200 sq. ft. — Marathahalli, Prestige Lakeshore.
- Volvo Group: 423,200 sq. ft. — CV Raman Nagar, Bagmane Tech Park.
- LTM Limited: 397,000 sq. ft. — Mysore Road, Global Village IT.
These transactions illustrate the scale of office leasing activity across multiple Bengaluru micro-markets.
Explore the Bengaluru Market Overview Q3 2026 Report
Get a detailed view of Bengaluru's commercial real estate market with the Address Advisors Market Overview Q3 2026 report. Explore office market performance, micro-market statistics, leasing transactions, workspace trends and metro connectivity developments in one comprehensive resource.
Download the Bengaluru Market Overview Q3 2026 report to access the full market snapshot and make informed commercial real estate decisions
Bengaluru Commercial Real Estate Market Insights – Q3 2026
An in-depth analysis of the City's key market indicators, competitive landscape, and emerging opportunities to support strategic planning.
