Bengaluru Leads India Office Market With 6.4 Million Sq Ft Leased in Q2 2026

Bengaluru solidified its dominance as India's top commercial real estate market during the April-June quarter of 2026, recording 6.4 million square feet of office leasing, with the Outer Ring Road (ORR) driving the vast majority of the transactions. According to a newly released report by real estate research firm Vestian, the city alone accounted for 27 percent of the total office absorption across the entire country during this period.

In addition to leading the nation in leasing activity, Bengaluru also led in fresh supply during the same quarter. The city recorded 6 million square feet of new office completions, which contributed nearly 40 percent of the total national supply of new office spaces.

Leasing activity within the city remained heavily concentrated along the Outer Ring Road (ORR). This major commercial stretch alone accounted for 76 percent of all of Bengaluru’s office transactions during the April-June quarter.

On a national scale, the office leasing market hit a record 23.9 million square feet in the second quarter of 2026. This high demand outpaced the fresh supply of 14.9 million square feet, widening the national demand-supply gap to 9 million square feet. This growing gap caused vacancy levels to fall and drove office rents up by 3 to 9 percent year-on-year across all major markets in India.

The Vestian report identified Global Capability Centres (GCCs) as the single largest driver of office space demand, accounting for 52 percent of the total leasing across India. GCC transactions were highly concentrated in three major cities—Bengaluru, Hyderabad, and Pune—which together contributed 72 percent of the national GCC transactions.

Furthermore, the report noted that sustained demand from IT and ITeS companies, alongside flexible workspace operators, continued to play a significant role in fueling Bengaluru's commercial real estate growth during the quarter.