NEW DELHI: In the first half of 2026, Bengaluru reported office transactions totaling 14.1 million sq ft, reflecting a 23% drop year-on-year, as per a Knight Frank India report.
This decrease is attributed to a high benchmark set in H1 2025, which included 8.3 million sq ft of pre-commitment transactions. Notably, excluding these pre-commitments, Bengaluru achieved its highest half-yearly leasing volume, the report highlighted.
Office completions surged by 407% from the previous year, reaching 10.4 million sq ft in H1 2026 as numerous large-scale projects that faced delays were finally completed.
The total office inventory in Bengaluru increased to 254 million sq ft, marking an 11% rise year-over-year, with vacancies climbing to 12.4%, a difference of 192 basis points compared to last year.
The average rent transacted grew by 8% to ₹102 per sq ft per month in H1 2026.
Global Capability Centres (GCCs) made up 60% of Bengaluru’s office transactions this period, compared to 53% in H1 2025.
Flexible workspace users represented 20% of all transactions, up from 15% in H1 2025. Indian-facing businesses accounted for 12%, and third-party IT services firms contributed 8%.
GCCs comprised 55% of coworking seat transactions in H1 2026, indicating an increased reliance on flexible workspaces for gradual expansion, project teams, and satellite offices.
The Outer Ring Road emerged as the leading business district by transaction share, capturing 52.1% of Bengaluru’s leasing activities in H1 2026, a significant rise from 24% in H1 2025.
PBD East accounted for 29.3% of transactions, making these two regions responsible for over 81% of citywide leasing.
Transaction shares for other districts included PBD North (5%), PBD South (3%), PBD West (2%), SBD (5%), and CBD and off-CBD (3%).
The average deal size in H1 2026 reached 82,448 sq ft, reflecting a trend towards larger, scalable office spaces.
A comparison of annual rental growth indicates that CBD and off-CBD areas experienced the highest increase at 17%, followed by SBD at 12.5%, PBD East at 10%, and Outer Ring Road at 6.7%.
Rents in CBD and off-CBD ranged from ₹160-250 per sq ft per month, while SBD rents were between ₹125-190 per sq ft per month, and Outer Ring Road rents varied from ₹105-135 per sq ft per month.
