Bengaluru sees new office supply of 5.9m sq ft in Q1 2026

This represents a 68% increase from last quarter.

A JLL report revealed that Bengaluru’s office market saw a new supply of 5.9 million sq ft in Q1 2026, up 68% quarter-on-quarter, reflecting a continued strong development pipeline across the city.

New completions were concentrated in the South Bengaluru District (SBD), which accounted for 4.1 million sq ft or 69.7% of total additions, followed by Whitefield with 1.5 million sq ft and the Central Business District (CBD) with 0.3 million sq ft.

JLL noted that vacancy edged up slightly to 10.6% in Q1 2026 from 10.5% in the previous quarter, as strong leasing activity largely offset the impact of new supply. Vacancy in SBD stood at 10.6%, while the CBD remained the tightest submarket at 3.1%, reflecting limited availability in prime locations.

According to JLL, net absorption reached 4.9 million sq ft during the quarter, rising 52% year-on-year amid sustained occupier momentum. Gross leasing activity totalled 5.3 million sq ft, maintaining healthy demand following the record 9.3 million sq ft recorded in Q4 2025.

The consultancy reported that the IT and ITeS sector remained the dominant driver of leasing, accounting for 53.2% of activity, followed by manufacturing and industrial occupiers at 20.2% and co-working operators at 15.9%. Large deals exceeding 100,000 sq ft continued to underpin market activity, reflecting strong occupier confidence and long-term space planning strategies.

Rental performance remained robust, with overall rents increasing 6.4% year-on-year. The CBD continued to command the highest rents, rising 2.2% quarter-on-quarter, followed by SBD at 1.4%. Whitefield and Electronic City also recorded gains of 2.7% and 0.9% respectively, supported by premium specifications and sustainability-led developments.

Looking ahead, JLL expects Bengaluru to retain its position as India’s leading office market, supported by diversified occupier demand and strong investment interest. The consultancy said tech firms are expected to remain the primary demand driver, alongside expansion from global capability centres, manufacturing, fintech, healthcare, BFSI and advanced manufacturing sectors, as well as flex space operators.

Pre-leasing activity is expected to remain strong, particularly in upcoming high-quality developments in SBD and Whitefield, with certified sustainable projects anticipated to command rental premiums and attract continued investor attention.