Bengaluru continues to be the heavyweight of Indian office markets. Here is where the demand, supply, and rent story stands in 2026.
Demand
Net absorption in Bengaluru is projected to cross 15 million sqft in FY26, driven overwhelmingly by GCCs and IT/ITES expansion. Captives of banks, consulting firms, and product companies continue to anchor large-floor-plate deals.
Supply hotspots
- Outer Ring Road (Marathahalli → Bellandur → Sarjapur): the largest new supply pipeline; institutional-grade towers from Embassy, RMZ, Prestige.
- Whitefield: mature, high-quality stock; lower vacancy than ORR.
- Electronic City: value corridor; older stock but improving connectivity via the metro.
- North Bengaluru (KIAL corridor): emerging; institutional interest building.
Rent trajectory
- ORR: ₹90–110 per sqft/month for Grade-A; up 7–9% YoY.
- Whitefield: ₹75–95 per sqft; up 6–8% YoY.
- Electronic City: ₹55–75 per sqft; up 4–6% YoY.
- CBD (MG Road, Residency Road): ₹110–135 per sqft; supply-constrained.
Vacancy
City-level vacancy is hovering around 11–13%, but this masks wide variance. Premium Grade-A towers in ORR and Whitefield see sub-5% vacancy, while older Grade-B stock can sit above 20% vacant.
Underwriting takeaways
- Grade-A in ORR / Whitefield remains the cleanest underwrite — deep tenant pool, contractual escalations, disciplined exits.
- Electronic City can work with the right acquisition basis but demands stronger lease lock-ins.
- North Bengaluru is early-cycle — only for investors with longer patience and a tolerance for lower rent defensibility in years 1–3.