Bengaluru office market sees dips amid nationwide growth in Q1 2025

Bengaluru, India’s leading office market, experienced a significant slowdown in leasing activity during the first quarter of 2025. Gross office leasing in the city fell by 28%, reaching 48.6 lakh square feet, down from 67.4 lakh square feet in the same period last year. Net leasing also declined sharply by 33%, standing at 24.9 lakh square feet compared to 36.9 lakh square feet a year ago. Despite this decline in leasing, new office supply in Bengaluru surged by 52% year-on-year to 32.8 lakh square feet. The city’s office space vacancy rate was reported at 9.7% for the quarter. 

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In contrast, the overall office market across India’s top eight cities showed positive momentum. Gross leasing rose by 4.5% to 202.9 lakh square feet, while net leasing increased by 20% to 134.4 lakh square feet. These eight cities include Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Pune, Hyderabad and Ahmedabad. The demand was supported by large deal closures and strong interest from global companies, particularly through Global Capability Centres (GCCs), which accounted for over 30% of total leasing. 

India’s position as a key destination for technology, research and innovation continues to strengthen. Easing domestic inflation, expected rate cuts and growing demand for flexible workspaces are likely to support further market growth.