finance

Bengaluru Real Estate Markets Point to Steady Growth for Expanding Businesses

Office leasing volumes and residential supply records in Q1 2026 highlight opportunities in premium segments as the city moves into a stabilisation phase.

By Bangalore Business Desk · Published 25 July 2026

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This article was written by AI from the linked sources and was not reviewed by a journalist before publishing. The Daily Bangalore is part of The Daily Network and follows our reasonable editorial care.

Bengaluru Real Estate Markets Point to Steady Growth for Expanding Businesses — Photo by nick_freakin / flickr (by)

Bengaluru's office market recorded a gross leasing volume of ~5.1 MSF in Q1 2026, according to Cushman & Wakefield data. This volume marks healthy year-over-year growth and points to sustained occupier confidence among technology and services firms.

Office and Residential Segments Align on Demand

The figures matter now because businesses planning expansions or new leases face a market shifting from rapid growth toward premium-led stabilisation in 2025-26. Moderate annual appreciation of 7-10% at the city level replaces earlier sharp rises, giving companies clearer visibility on long-term occupancy costs without the risk of abrupt corrections.

Residential home sales remained strong in Q1 2026 and outperformed other major Indian cities, with a record quarterly supply of 27,000 units. Home prices rose 3.2% quarter-over-quarter while rents increased 2.7% in the same period, per JLL and related market reports. These parallel movements in office leasing and housing supply indicate that employment growth continues to support both commercial and worker accommodation needs.

Price Outlook and Practical Steps for Firms

The Broadway consultancy JLL projects Bengaluru residential property prices to rise by 10-12% in 2026, driven by premium housing demand and robust office sector expansion. Businesses relocating teams or scouting sites should therefore prioritise well-connected corridors where annual price gains of 8-12% are concentrated, while monitoring mid-segment affordability constraints that persist citywide.

Companies evaluating new facilities can review current leasing data from Cushman & Wakefield and supply figures from JLL to time commitments around premium inventory. This approach aligns occupancy decisions with the documented transition to stabilisation rather than chasing earlier expansion peaks.

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.

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