Bengaluru’s office market closed 2025 on a historic high, with leasing activity breaking records and reinforcing the city’s position as India’s corporate hub. According to JLL’s latest report, Q4 gross leasing touched 9.3 million sq. ft., an 18.6% year-on-year jump, while full year leasing hit 24.1 million sq. ft., the highest ever recorded. Technology firms led demand with nearly a quarter share, but Flex and Manufacturing/Industrial occupiers were close behind, reflecting a broadening base of corporate expansion. Large deals dominated, accounting for 65% of activity, while precommitments made up 15%, signaling strong confidence in future growth. The Southern Business District (SBD), particularly ORR South-east and SBD City, drove momentum, supported by new supply additions and tightening vacancies. Rentals rose 6.6% year-on-year, while property prices climbed 9.1%, underscoring investor appetite for high-grade assets.
Record Leasing Activity
Bengaluru’s office market witnessed unprecedented momentum in Q4 2025, with gross leasing at 9.3 million sq. ft. an 18.6% increase over the previous year. This pushed total leasing for 2025 to 24.1 million sq. ft., the highest ever. Technology firms led demand with a 24.7% share, but Flex operators (24.3%) and Manufacturing/Industrial occupiers (23.7%) showed equally strong traction, highlighting the city’s diversified demand drivers. Large transactions above 100,000 sq. ft. accounted for 65% of leasing, while precommitments formed 15%, reflecting occupier confidence and expansion intent.
Submarket Dynamics
The Southern Business District (SBD) remained the epicenter of activity, with ORR South-east leading leasing momentum and vacancy reduction despite new supply. ORR South-east alone contributed 55% of new supply in Q4, followed by ORR North. SBD City and Whitefield also saw strong absorption, driving vacancy down by 70 basis points quarter-on-quarter to 10.5%. With several projects nearing completion, largely in the SBD submarket, upcoming supply is expected to sustain momentum into 2026.
Rentals and Investor Sentiment
Rents rose 6.6% year-on-year, with developers setting new building rentals above prevailing market levels in premium submarkets where vacancy was tight. Average gross rent stood at INR 100 per sq. ft. per month. Property prices climbed 9.1% year-on-year, driven by strong investor demand for high-grade assets with quality tenants. Active transaction activity underscored Bengaluru’s appeal as a long-term investment destination, with institutional capital chasing resilient office assets.
Market Fundamentals
Net absorption for 2025 stood at 16.9 million sq. ft., while completions totaled 16.1 million sq. ft., keeping supply and demand in balance. Vacancy at 10.5% reflects healthy market conditions, with rents firmly in the “rising” stage of the cycle. The combination of strong occupier demand, diversified sectoral participation, and investor appetite suggests Bengaluru’s office market is poised for continued growth. With infrastructure upgrades and corporate expansion plans aligning, the city remains India’s most dynamic office destination heading into 2026.
