ASIA PACIFIC OUTLOOK 2025

BENGALURU

KEY MESSAGES

Supply

Demand

Rents

Key Outlook

Bengaluru's mature tech ecosystem, large talent pool, competitive real estate costs and premium Grade A properties will continue to support healthy office market activity in the near to medium term.

Bengaluru is likely to witnesssupply of over 14 msf n 2024.

2024 is likely to witness net absorption of around12.5 msf, a record high for the city.

Rents have witnessed marginal growth in 2024.

Strong demand and a flight-to quality could result in marginal rises in rents in 2025 and beyond, despite consistent supply coming in.

Approximately 31 msf of total supply is expected to be completed during 2025–2026, with the Outer Ring Road submarket being the major contributor at approximately 46% of the total.

Net absorption is likely to remain healthy, at a yearly average of 12– 13 msf, in 2025 and 2026 on the back of a healthy deal pipeline.

Sustainabilityis becoming an integral part of the office market whilemanaged officeshave become a key growth enabler.

Citywide vacancy is expected to be somewhat elevated in 2024 and 2025 owing to the high volume of supply.

Upward rental movement will take rents closer to INR1185 per sq ft per year by the end of 2027.

Beyond 2026, average annual supply is expected at ~14 msf.

Cushman & Wakefield

ASIA PACIFIC OUTLOOK 2025