Bengaluru’s office market set for strong expansion through FY27

Bengaluru to add 25M sq ft office space by FY27, 25% pre-leased. Occupancy seen rising to 92% by 2027, with Hebbal-Devanahalli emerging as key hub

Bengaluru’s office real estate sector is poised for robust growth, with nearly 25 million square feet of new supply expected in the second half of FY27. Notably, close to a quarter of this pipeline is already pre-leased, underscoring the city’s strong demand fundamentals.

Global capability centers (GCCs) continue to be the primary drivers of absorption, helping net demand consistently outpace new supply. This trend has pushed occupancy levels in gradeA office spaces to 90.8% by September 2025, up from 88.5% in March 2024.

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Recent data highlights the strength of the market. In FY25, Bengaluru added 16.3 million square feet of fresh gradeA stock, while H1 FY26 saw another 8.4 million square feet. Absorption during the same periods was even higher, at 18.4 million and 10.1 million square feet respectively. This imbalance has lifted occupancy by 230 basis points over the past 18 months. Between FY2018 and FY25, the city’s office stock expanded at a 7% CAGR, consolidating its position as India’s largest office hub.

Looking ahead, despite an additional 16–17 million square feet of supply expected in FY26 and FY27, occupancy is forecast to rise further, reaching 91–91.5% by March 2026 and 92–92.5% by March 2027. Bengaluru currently accounts for 26% of India’s gradeA office supply, with 277 million square feet as of September 2025.

The Hebbal-Devanahalli corridor, strategically located near the airport, is emerging as a key growth zone. Its share of total supply is projected to climb to 8% by FY27, up from just 3% in FY2018, signaling a shift in the city’s commercial landscape.

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