Bengaluru Commercial Real Estate Market Insights – Q1 2026

Bengaluru entered 2026 with strong momentum across its commercial office market. According to the Address Advisors Bengaluru Office Sector Snapshot, the city continues to maintain a leading position in India’s office leasing landscape, supported by demand from technology companies, Global Capability Centers (GCCs), startups, and BFSI occupiers. The report also notes the growing role of flexible workspaces and steady absorption as important factors shaping the city’s commercial real estate environment.

Bengaluru Office Market at a Glance

In Q1 2026, Bengaluru’s office stock stood at 241.1 million sq. ft., while vacancy was recorded at 15.3%. New office supply during the quarter reached 5.5 million sq. ft., representing a 49% year-on-year increase. Gross absorption stood at 5.3 million sq. ft., up 18% year-on-year.

Conventional office space continued to dominate leasing activity, accounting for 4.8 million sq. ft., or 91% of transactions. Flex space accounted for the remaining 0.5 million sq. ft., representing 9% of the market. Sector-wise, technology companies contributed 42% of leasing activity, while BFSI accounted for 33%.

Large transactions were a defining feature of the quarter. Office deals of 100,000 sq. ft. and above represented 75% of transaction activity, while spaces between 50,000 and 99,999 sq. ft. accounted for 14%. Transactions below 50,000 sq. ft. represented 11%.

Performance Across Bengaluru’s Key Micro-Markets

The SBD ORR corridor remained the city’s largest office micro-market, with a stock of 101.56 million sq. ft. It recorded 4.46 million sq. ft. of new supply, 3.1 million sq. ft. of net absorption and a vacancy rate of 9.2%. Quoted rents in this corridor ranged from INR 85 to INR 120.

PBD East, covering Whitefield and Brookfield, had 56.21 million sq. ft. of stock, 0.21 million sq. ft. of new supply and 0.71 million sq. ft. of net absorption. PBD North recorded 17.21 million sq. ft. of stock, 0.67 million sq. ft. of new supply and a 19% vacancy rate.

The CBD had 13 million sq. ft. of stock and the lowest listed vacancy rate at 2%, with quoted rents ranging from INR 150 to INR 250. SBD City recorded 39.22 million sq. ft. of stock and 13.3% vacancy, while PBD South had 14 million sq. ft. of stock and 9.5% vacancy.

Key Leasing and Development Activity

Major leasing transactions highlighted in the report include Uber taking 1,136,800 sq. ft. at Prestige Lakeshore Drive and Commonwealth Bank of Australia leasing 1,100,000 sq. ft. at Manyata Tech Park. Smartworks leased 575,000 sq. ft. at Sattva Aura, while Blackstone took 388,000 sq. ft. at Prestige Lakeshore Drive. Beckman Coulter, ExxonMobil, Caterpillar and Tablespace were also among the notable occupiers during the quarter.

On the development front, Capita Land Tower 7 in Whitefield, with 920,000 sq. ft., and Bagmane Damascus Tower 1 in Mahadevpura, with 800,000 sq. ft., were identified as key construction projects.

Metro Connectivity and Outlook

The report also tracks Bengaluru’s expanding metro network. The Purple, Green and Yellow lines are listed as operational, while the Pink and Blue lines are identified as upcoming. Proposed Phase 3 corridors include the Grey, Orange and Red lines, indicating the broader connectivity framework being planned across the city.

For more details on Bengaluru’s Q1 2026 office market, including micro-market rentals, metro connectivity, leasing transactions and construction activity, download the full Bengaluru Market Overview Q1 2026 PDF.