Bengaluru MarketBeat Reports

Bengaluru’s office market sustained strong momentum in Q2 2026, recording a gross leasing volume of 5.6 MSF, driven by healthy occupier demand and robust GCC activity. Global Capability Centres accounted for 52% of quarterly leasing, while engineering and manufacturing, BFSI, and IT-BPM firms remained key demand drivers. Outer Ring Road and Peripheral East continued to attract the highest office leasing activity. Net absorption remained strong at 3.5 MSF, supported by fresh leasing and pre-commitments. Record Grade A office supply of 5.8 MSF in Q2, while office rentals continued to be appreciated, reflecting sustained demand for quality commercial real estate in Bengaluru.

Bengaluru recorded retail leasing of ~0.25 MSF in Q2 2026, up 19% q-o-q and 42% y-o-y. Main streets dominated with a 68% share, driven by robust activity across prime locations such as Indiranagar, Brigade Road, Koramangala and Sarjapur Road. Malls contributed 32% of leasing, led by leasing at Bhartiya Mall, Phoenix Mall of Asia, Phoenix Market city and VR Mall. For H1 2026, leasing reached ~0.47 MSF, reflecting healthy demand. With no new mall supply, Grade A vacancy tightened to 3.3%.

Bengaluru recorded 12,442 residential launches in Q3 2026, with East and South-East emerging as the most active submarkets, led by strong developer activity across Varthur, Panathur Road and Sarjapur Road. High-end and luxury housing continued to dominate supply, while affordable housing witnessed a welcome resurgence. Year-to-date launches reached a record ~37,650 units, highlighting sustained market momentum.

Bengaluru’s warehousing and industrial market recorded strong momentum in H1 2026, with warehouse leasing reaching 3.1 MSF, driven by robust demand from 3PL operators, e-commerce companies and manufacturing firms. Nelamangala, Dabaspete and Hoskote emerged as the leading warehousing hubs, supported by strong occupier activity across the western and eastern corridors.

Cushman & Wakefield India Capital MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.