finance
Premium Corridors Open Openings as Bengaluru Real Estate Holds Steady
Record quarterly supply of 27,000 residential units and 5.1 million square feet of office leasing in Q1 2026 are drawing activity mainly from buyers and tenants focused on well-connected areas.
How we reported this
Bengaluru residential supply reached a quarterly record of 27,000 units in Q1 2026 while office gross leasing hit 5.1 million square feet, figures that set the city apart from other major Indian markets during the period.
Prices averaged ₹10,927 per square foot for the year, up 14.36 percent from the prior year, according to Housing.com data. Rents rose 2.7 percent quarter over quarter and sale prices 3.2 percent over the same stretch, per Cushman & Wakefield figures. These movements coincide with sustained demand in corridors where annual price growth has ranged between 8 and 12 percent.
Residential segment shows premium tilt
The pattern is described by JLL as premium-led stabilisation. Mid-segment buyers face tighter affordability, while transactions concentrate in locations with strong connectivity. New launches reached 49,252 units in 2025, the highest annual total on record, yet absorption has kept pace in the upper tiers. Investors positioned in these corridors have captured the bulk of the appreciation reported so far this year.
Office net absorption of 3.4 million square feet in the same quarter signals that occupiers continue to commit space despite higher asking rates. The volume reflects confidence among established tenants rather than speculative entry by smaller players.
Who is positioned to gain
Established corporates and premium residential buyers are already securing inventory at the current price points. JLL notes that well-connected corridors continue to post the strongest annual gains, giving those with access to financing in those zones a measurable edge over buyers restricted to mid-segment stock.
Market participants tracking these trends are directing attention to inventory that matches the premium absorption pattern rather than waiting for broader affordability shifts. Data from the first quarter supply and leasing volumes provide the clearest near-term signal for allocation decisions.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.