Bengaluru leads with largest share at 6.55M sqft in India's booming office space market in H1 2025

Bengaluru has emerged as the undisputed leader in India’s resurgent commercial office market, with record-breaking leasing and new supply additions in the first half of 2025. According to recent data, net office space absorption across India’s top seven cities rose 40% year-on-year to 26.8 million sq. ft., and Bengaluru contributed the largest share—clocking 6.55 million sq. ft., a sharp 64% rise from 4 million sq. ft. during the same period in 2024.

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The city’s performance reinforces its status as India’s tech and innovation capital, attracting major occupiers from the IT, ITeS, co-working, and BFSI sectors. These segments collectively drove leasing activity, with IT and co-working alone accounting for over half of all demand nationwide.

Bengaluru also led in new office completions, delivering 6.91 million sq. ft. of space—a 26% year-on-year increase. This influx of high-quality stock has helped meet surging demand from global capability centres (GCCs), startups, and large corporates seeking a stable and digitally mature ecosystem.

Despite the increased supply, office vacancy rates in Bengaluru remained stable, and average monthly rentals rose by 5%—in line with the national trend. While cities like Pune and NCR also saw significant growth, Bengaluru remains ahead by a wide margin.

With robust infrastructure, a steady talent pipeline, and consistent demand, Bengaluru continues to reinforce its position as the commercial heart of India’s evolving office market.