Bengaluru Office Leasing Hits Record 24.1 Million Sq Ft in 2025

Bengaluru’s office real estate market has closed 2025 on an exceptional note, setting a new benchmark in annual leasing activity. According to the latest industry data, the city recorded a historic 24.1 million square feet of gross office leasing during the year, marking its strongest performance to date. The surge was powered by a remarkable fourth quarter, which alone contributed 9.3 million square feet, reflecting an 18.6 percent year on year increase.

The technology sector continued to anchor demand, accounting for the largest share of transactions. Flexible workspace operators and manufacturing and industrial occupiers also played a significant role, underlining the diversification of Bengaluru’s occupier base. Large transactions dominated market activity, signalling sustained expansion plans among domestic corporates and global firms strengthening their India presence.

Leasing momentum remained concentrated in established business corridors, particularly the Southern Business District and key ORR micro markets. These locations benefited from strong infrastructure, quality office developments and proximity to talent hubs. Pre commitments in upcoming projects further reflected occupier confidence in the city’s long term growth trajectory.

On the supply side, new completions during the year added fresh Grade A stock, largely within high demand submarkets. Despite the influx of supply, vacancy levels declined, supported by steady absorption. Tight availability in premium developments pushed average rentals upward, while capital values strengthened on the back of robust investor appetite.

Industry experts believe Bengaluru is well positioned to sustain this growth momentum. Expansion across technology, engineering, financial services and flexible office segments is expected to drive future demand. With resilient fundamentals, improving infrastructure and consistent investor interest, Bengaluru continues to reinforce its position as India’s leading office market and a preferred destination for global businesses.