NEW DELHI: Bengaluru is set to see approximately 25 million sq ft of new office space coming online in the latter half of FY27, with about 25% already pre-leased.
Despite a forecast of 16-17 million sq ft of new space for FY26 and FY27, occupancy rates are expected to reach 91-91.5% by March 2026 and 92-92.5% by March 2027, driven by ongoing leasing activity, according to ICRA’s latest report.
In FY25, the city reported 16.3 million sq ft of fresh Grade-A office supply, alongside 8.4 million sq ft in H1 FY26, compared to net absorption figures of 18.4 million sq ft and 10.1 million sq ft, respectively. As demand exceeded supply, occupancy climbed by 230 basis points to 90.8% by September 2025, up from 88.5% in March 2024, largely fueled by robust interest from global capability centers (GCCs).
Bengaluru accounts for the highest proportion of Grade-A office supply among India’s top six cities, holding 26% (277 million sq ft) as of September 30, 2025, which includes Chennai, the Delhi National Capital Region (NCR), Hyderabad, the Mumbai Metropolitan Region (MMR), and Pune.
From FY2018 to FY2025, the Bengaluru office market experienced a compound annual growth rate (CAGR) of about 7%. The Hebbal-Devanahalli corridor, leading to the airport, has seen a consistent increase in Grade-A office space, with its share of total supply expected to rise from 3% in FY2018 to 8% by FY27.
