Bengaluru Office Market Snapshot — Q1 2026 Source: Colliers India Office Snapshot, Q1 2026 | Data pertains to Grade A office buildings
Key Highlights
- India's office capital: Bengaluru accounted for 29% of pan-India leasing and a dominant 46% of pan-India new supply in Q1 2026 — no other city comes close on either metric
- Massive supply addition: New Grade A completions hit 5.5 msf — up 49% YoY, the highest supply growth rate among all top 7 cities
- Absorption stays robust: Gross absorption at 5.3 msf — up 18% YoY, with demand closely tracking the surge in new supply
- Vacancy holds steady: Vacancy inched up just 5 bps YoY to 15.3% — a remarkably stable outcome given the scale of new supply delivered
- Rents on an upward trend: Average city rent rose 3.2% YoY to ₹101.3/sf/month, with rentals expected to firm up further in Q2 2026
- ORR is the undisputed powerhouse: Outer Ring Road captured 85% of new supply and 72% of city leasing — it is by far the most active corridor in Bengaluru
- Mega-deals define the quarter: 75% of all leasing was in large deals (100,000 sf+) — among the highest large-deal concentrations in India, driven by GCC expansions
- Uber & CBA seal landmark deals: Uber leased 11.36 lakh sq ft at Prestige Lakeshore Drive and Commonwealth Bank of Australia leased 11 lakh sq ft at Manyata Tech Park — both in ORR — the two largest office transactions in India in Q1 2026
- Tech + BFSI power demand: Technology firms drove 42% and BFSI drove 33% of conventional leasing — together accounting for 75% of Grade A space absorbed
- Enterprise over flex: 91% of leasing was conventional space — Bengaluru remains the preferred destination for large captive/GCC setups rather than flex operators
- Premium pricing in core zones: CBD rents at ₹161.4 and SBD 1 at ₹149.2 are well above the dollar threshold, while ORR offers near-dollar pricing at ₹111.8 — affordable for the quality on offer
- Whitefield on the rise: Despite being sub-dollar (₹71.6/sf/month), Whitefield contributed 11% of city leasing — ExxonMobil's 2.25 lakh sq ft deal at ITPL signals sustained occupier interest
Key Headline Numbers
| Metric | Q1 2026 Value | YoY Change |
|---|---|---|
| Total Grade A Stock | 241.1 msf | — |
| New Supply | 5.5 msf | ↑ 49% YoY |
| Gross Absorption | 5.3 msf | ↑ 18% YoY |
| Vacancy Rate | 15.3% | ↑ 5 bps YoY |
| Avg WAQ Rent (₹/sf/month) | ₹101.3 | ↑ 3.2% YoY |
Bengaluru accounted for 29% of pan-India leasing and 46% of pan-India new supply in Q1 2026 — reinforcing its position as India's premier office market.
Supply Highlights
- Total new supply: 5.5 msf — up a sharp 49% year-on-year
- Bengaluru was the #1 city in India for new Grade A office completions in Q1 2026
- Outer Ring Road (ORR) dominated supply, contributing 85% of all new completions in the city
- North Bengaluru contributed 11%, and SBD 1 contributed 4%
Micro Market — Supply Share (Q1 2026):
| Micro Market | Supply Share |
|---|---|
| Outer Ring Road (ORR) | 85% |
| North Bengaluru | 11% |
| SBD 1 | 4% |
Demand / Leasing Highlights
- Total gross absorption: 5.3 msf — up 18% year-on-year
- Bengaluru + Hyderabad together drove ~48% of pan-India office demand in Q1 2026
- ORR dominated leasing, accounting for 72% of city demand — the clear epicenter of Bengaluru's office market
- Whitefield and North Bengaluru each contributed 11% of leasing activity
Micro Market — Leasing Share (Q1 2026):
| Micro Market | Leasing Share |
|---|---|
| Outer Ring Road (ORR) | 72% |
| Whitefield | 11% |
| North Bengaluru | 11% |
| Others | 6% |
Conventional vs Flex Leasing Split
| Type | Volume (msf) | Share |
|---|---|---|
| Conventional Space | 4.8 msf | 91% |
| Flex Space | 0.5 msf | 9% |
Bengaluru is overwhelmingly driven by conventional (non-flex) leasing at 91% — in contrast to Hyderabad and Delhi NCR where flex demand is significantly higher.
Sector Drivers (Conventional Leasing — Q1 2026)
| Sector | Share |
|---|---|
| Technology | 42% |
| BFSI | 33% |
| Others (Engg. & Mftg., Consulting, E-commerce, etc.) | 25% |
- Technology sector: 2.0 msf of Grade A space absorbed — the primary growth engine
- BFSI sector: 1.6 msf — second largest contributor, reflecting strong GCC and banking expansion
Deal Size Distribution (Q1 2026)
| Deal Size | Share |
|---|---|
| Large (100,000 sf or more) | 75% |
| Medium (50,000–99,999 sf) | 14% |
| Small (less than 30,000 sf) | 11% |
A massive 75% of leasing was in large deals (100,000 sf+) — one of the highest large-deal shares across all Indian cities, signaling enterprise-level and GCC commitments.
WAQ Rent Snapshot — Micro Market Breakdown
| Micro Market | Avg WAQ Rent (₹/sf/month) | Tier |
|---|---|---|
| CBD (MG Road, Richmond Road, etc.) | ₹161.4 | Above Dollar |
| SBD 1 (Koramangala, Indiranagar, etc.) | ₹149.2 | Above Dollar |
| Outer Ring Road (ORR) | ₹111.8 | Near Dollar |
| Average City Rent | ₹101.3 | — |
| SBD 2 (Bannerghatta Road, JP Nagar, etc.) | ₹95.3 | Sub Dollar |
| North Bengaluru (Hebbal, Bellary Road, etc.) | ₹74.4 | Sub Dollar |
| PBD (Mysore Road, Sarjapur Road) | ₹74.2 | Sub Dollar |
| Whitefield (Brookfield, Hoodi) | ₹71.6 | Sub Dollar |
| Electronic City (Phase I & II, Hosur Road) | ₹66.0 | Sub Dollar |
ORR at ₹111.8 sits near the dollar-rate threshold and drives the bulk of both supply and demand. CBD commands a significant premium at ₹161.4 — 59% above the city average.
Vacancy Trends
- City vacancy: 15.3% — up marginally by 5 basis points YoY (largely stable)
- Despite massive new supply additions (5.5 msf, up 49% YoY), vacancy stayed controlled, reflecting strong absorption
- Bengaluru's vacancy compares favorably to Hyderabad (22.1%) and Pune (20.3%)
Rental Trends
- Average city rent: ₹101.3/sf/month — up 3.2% YoY
- Rental growth is steady but moderate — a sign of a mature, well-supplied market
- CBD and SBD 1 command above-dollar rents (₹161.4 and ₹149.2 respectively), used by premium occupiers
- ORR, at ₹111.8, is the most active market — offering near-dollar pricing for high-quality, large-format spaces
- Electronic City remains the most affordable Grade A corridor at ₹66.0/sf/month
Select Marquee Transactions — Q1 2026
| Tenant | Area (sf) | Property | Micro Market |
|---|---|---|---|
| Uber | 11,36,800 | Prestige Lakeshore Drive | ORR |
| Commonwealth Bank of Australia | 11,00,000 | Manyata Tech Park | ORR |
| ExxonMobil | 2,25,000 | ITPL – Inventor | Whitefield |
Two deals above 1 million sq ft each — Uber and Commonwealth Bank of Australia — both in the ORR corridor, underscore the mega-GCC momentum in Bengaluru.
Outlook — Q2 2026
| Indicator | Direction |
|---|---|
| Supply | → Stable |
| Demand | → Stable |
| Vacancy | → Stable |
| Rental | ↑ Rising |
Rentals are expected to firm up further in Q2 2026. Supply and demand are projected to remain broadly stable, with vacancy holding steady. The rental uptick signals continued pricing power for landlords in key corridors like ORR and SBD 1.
Bengaluru vs Pan India — Quick Comparison
| Metric | Bengaluru | Pan India |
|---|---|---|
| Stock | 241.1 msf | 854.2 msf |
| New Supply | 5.5 msf (↑49% YoY) | 11.8 msf (↑19% YoY) |
| Gross Absorption | 5.3 msf (↑18% YoY) | 18.3 msf (↑15% YoY) |
| Vacancy | 15.3% (↑5 bps) | 15.5% (↓71 bps) |
| Avg WAQ Rent | ₹101.3 (↑3.2% YoY) | ₹111.6 (↑6.3% YoY) |
| Share of India Leasing | 29% | — |
| Share of India Supply | 46% | — |
| Top Demand Sector | Technology (42%) | Technology (36%) |
Data Source: Colliers India Office Snapshot, Q1 2026. All figures pertain to Grade A office buildings. Gross absorption excludes lease renewals, pre-commitments, and LOI-only deals. WAQ Rents are for warm shell offices and exclude CAM charges and taxes. USD conversion: 1 USD = ₹93.48 (as of 31 March 2026). Bengaluru data has been recalibrated to reflect a revision in Grade A office stock.