Bengaluru, one of India's leading technology hubs, has a growing demand for grade-A office supply. Among the top cities such as Chennai, Delhi-NCR, Hyderabad, Mumbai Metropolitan Region and Pune, Bengaluru has a supply contribution of 26 percent, 277 million sq ft in other words, making it one of the powerhouses in the commercial real estate market.

In the second half of FY27, Bengaluru is expected to have a new office supply of 25 million sq ft with 25 percent already pre-leased. Considered as the Silicon Valley of India, the city continues to be a thriving hub because of its demand for office space.

The city added 16.3 million sq ft of new Grade-A office space in FY25 and another 8.4 million sq ft in the first half of FY26. During the same period, net absorption reached 18.4 million sq ft and 10.1 million sq ft, respectively, surpassing fresh supply.

The occupancy levels have increased from 88.5 percent in March 2024 to 90.8 percent in the previous quarter, which is further expected to reach 91-91.5% by FY26 and 92-92.5% by the end of FY27, fueled by continued leasing activity, ICRA said in its latest report. The uptick in absorption was largely fuelled by the continued expansion of global capability centres (GCCs).

The office market stock of Bengaluru registered a CAGR of approximately 7% from FY2018 to FY2025. The Hebbal-Devanahalli corridor which is situated near the international airport area is witnessing a growing supply for the Grade-A offices with its share of total supply further expected to increase from 3% in FY2018 to 8% by FY27.

Due to the Hebbal-Devanahalli corridor's proximity to the airport, the area has shown a steady expansion for office developments and its supply.

Bengaluru continues to be India's growing office market because of the area's strong demand and supply. The city's strong infrastructure, growing supply for Grade-A office spaces and business-friendly environment are its driving force, making it a commercial real estate powerhouse. Because of Bengaluru's office market, the city will see a strong expansion and growing demand for corporate spaces.

With an impressive office supply of 25 million sq ft in H2 FY27, Bengaluru is leading to be one of the top cities in India's office space absorption. Considering all these factors, Bengaluru offers multiple investment opportunities in the commercial real estate market.