Bengaluru MarketBeat Reports

Bengaluru’s office market began on a strong note, recording a gross leasing volume of ~5.1 MSF in Q1-2026, reflecting healthy y-o-y growth and sustained occupier confidence. Net absorption reached ~3.4 MSF, supported by robust fresh leasing and commencement of pre-committed projects. Global Capability Centres (GCCs) remained key demand drivers, accounting for 48% of leasing, followed by strong traction from engineering and manufacturing, flexible workspaces and IT-BPM firms. Outer Ring Road continued to dominate leasing activity, supported by Peripheral East. New Grade A office supply of ~3 MSF enhanced market depth, while citywide vacancy declined further to 7.8%. Office rentals continued to rise, underlining strong demand for quality commercial office space in Bengaluru.

Bengaluru recorded retail leasing of ~0.21 MSF in Q1-2026, remaining largely stable q-o-q with 13% y-o-y growth. Main streets led with a 57% share, driven by fashion and lifestyle leasing across prime locations. Malls contributed 43% of leasing, with leading Grade A centres witnessing healthy absorption across categories. With no new supply added, Grade A mall vacancy tightened marginally, while main street rentals rose modestly, reflecting sustained retailer confidence across prime retail corridors.

Bengaluru recorded 12,664 residential launches in Q1 2026, reflecting a steady 4% growth both q-o-q and y-o-y. The East submarket dominated with 57% share, driven by Whitefield, Gunjur, Budigere Cross, and Hoskote, followed by the North submarket with 38% share, led by Devanahalli, Hebbal, and Bileshevale. High-end and luxury segments surged to 68% share, up from 53% in the previous quarter, while the mid-segment accounted for 31%. Affordable housing however slowed to 1% of launches. Capital values appreciated 1-2% q-o-q and 5-6% y-o-y, with East, South-East, and North submarkets leading the growth. Rentals grew 1-2% q-o-q and 4–5% y-o-y, driven by prime submarkets.

Bengaluru recorded ~1.9 MSF of warehouse leasing in H2 2025, led by strong activity in Hoskote and Nelamangala. 3PL (41%) and retail (30%) remained key demand drivers. Supply additions stayed healthy at ~2 MSF, with rentals rising 4–5% YoY and land values up 9–10%. Industrial leasing also strengthened, reaching ~0.8 MSF, driven by robust activity in Jigani and Devanahalli

Cushman & Wakefield India Capital MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.