Bengaluru Office Rents Rise as Leasing Activity Surges in H1 2026

Bengaluru recorded 14.1 million sq ft of commercial office leasing in H1 2026, accompanied by average rentals of approximately ₹102 per sq ft per month. These metrics, drawn from market data, provide concrete reference points for evaluating investment performance amid a 23% year-on-year decline in leasing volumes from the prior period.

Leasing Volumes and Market Position

In Q1 2026 Bengaluru accounted for 5.3 million sq ft of office leasing, representing 24.8% of national volumes and 70% of Global Capability Centre leasing. The H1 total of 14.1 million sq ft occurred alongside a 407% surge in new supply to 10.4 million sq ft. Such volume and supply figures supply baseline data for modelling occupancy and income expectations.

Rental Rates in Key Districts

Average office rentals reached approximately ₹102 per sq ft per month in H1 2026. Premium districts including Outer Ring Road and PBD East accounted for over half of all leasing activity. These location-specific concentrations indicate where rental income streams have been most active during the half year.

Transaction Evidence and Warehousing Context

Documented deals include TCS leasing 1.4 million sq ft at 360 Business Park for Rs 2,130 crore and Target Corporation securing 8.3 lakh sq ft at Embassy Manyata Business Park for Rs 1,250 crore. Separately, the warehousing market expanded 24% year-on-year in 2025 to 8.2 million sq ft, supported by e-commerce and manufacturing demand, while the IT corridor continues to anchor commercial real estate expansion. These transaction sizes and sector growth rates supply additional inputs for yield calculations.

Investors reviewing portfolio allocations can track ongoing supply absorption and rental stability using the reported H1 2026 benchmarks as reference points.

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.