Bengaluru gross office leasing hits all-time high in 2025

Gross leasing increased 18.6% to 9.3m sq ft in Q4 alone.

Bengaluru’s office market closed 2025 on a high note, with Q4 gross leasing reaching a record 9.3 million square feet, up 18.6% year-over-year, according to a report by JLL. This strong fourth-quarter performance helped push total leasing for the year to an all-time high of 24.1 million square feet, making 2025 the city’s most active year for office take-up.

The technology sector continued to lead leasing activity with a 24.7% share, while flexible workspaces and manufacturing/industrial sectors contributed 24.3% and 23.7% respectively. Pre-commitments accounted for 15% of Q4 leasing, and large deals exceeding 100,000 square feet represented 65% of total transactions, reflecting strong occupier confidence and ongoing corporate expansion. Leasing momentum was primarily concentrated in the Southern Business District (SBD), driven by the ORR South-East and SBD City submarkets.

New office supply in Q4 2025 reached 3.5 million square feet, a 55% increase quarter-over-quarter, bringing total 2025 supply to 12.0 million square feet. Supply additions were limited to the SBD submarket, with ORR South-East accounting for 55% of new completions, followed by ORR North. Several projects nearing completion, primarily in the SBD, are expected to contribute to upcoming supply additions in the near term.

Despite the influx of new stock, office vacancy in Bengaluru declined by 70 basis points quarter-over-quarter to 10.5%. ORR South-East led the reduction through robust leasing activity, while SBD South, Whitefield, and SBD City submarkets also recorded declines due to significant take-up.

Rents and capital values continued their upward trajectory, supported by tight vacancy levels in premium submarkets. Average rentals rose 6.6% year-over-year as developers set new building rents above prevailing market levels, while property prices increased 8.6% year-over-year, underpinned by strong investor demand for high-grade assets with quality tenants and active transaction activity.

Looking ahead, JLL expects Bengaluru to maintain its position as India’s leading office market, supported by global companies expanding technology and back-office operations. Future leasing activity is anticipated to span manufacturing and engineering, healthcare, BFSI, and flexible workspaces, aligning with evolving workplace needs. The market is expected to continue absorbing new supply while sustaining rental growth, creating attractive conditions for both domestic and international investors and supporting further increases in capital values.

JLL concluded that Bengaluru’s strong fundamentals, robust leasing momentum, and premium office performance position the city as a resilient and high-growth office market, appealing to tenants and investors alike.