Bengaluru gross leasing volume of office hits 11.8 m sq ft in H1

The Bengaluru SBD city submarket dominated office space in ORR North and South East. There are large deals in office spaces (>50,000 sq ft) that represent 80% of fresh deals. Even though there is no new office supply in these clusters, these submarkets are now enduring appeal.

Q2 Gross Leasing Volume (GLV) reached 7.53 million sq ft. It brings H1 2025 to 11.8 million sq ft which is the second half yearly GLV above 10 million sq ft. The IT sector reclaimed the lead with a 40% share in the leasing activity. It is increasing its space take up by 1.6 times from the Q1 report.

SBD City led the Q2 supply of Bengaluru with a 30% share. It is followed by Whitefield, SBD North, and SBD South. So, there is a rise in ultra luxury residential properties too, like Prestige Evergreen from Prestige Group. Grade A builders provide more than one-third of the new supply. It highlights the real estate market’s focus on modern workplace features.

Features of the Real Estate Asia community

The Office market vacancy rose by 60 bps to 12.0% in the Q2 period. It is driven by the new supply of office spaces. Submarkets with new inventory are now seeing rising vacancies. Areas like CBD and Electronic City are showing reduced rates. It indicated consistent city- wide office absorption.

Rentals grow by 7.3% year over year as reputed builders set high market rates in prime areas where the availability is limited. The office market shows a shift toward quality improvement with builders seeking green certifications through their property upgrades. This results in a rental increase across all the submarkets.

Capital values increased by 9.6% year over year as investor interest is in demand for high- quality assets, and rental demand is high. The IT field dominates office demand, but co- working sectors are also growing.

Bengaluru’s office sector absorbs new supply while there is a rent growth, and it helps in a positive investment climate. Capital values will rise as demand persists, amid strong growth prospects are there that will attract many investments.