Bengaluru is expected to witness around 25 msf of new office supply during H2 FY2026–FY2027, of which nearly 25% has already been pre-leased. Despite global headwinds, including policy tightening and trade restrictions in the US, office leasing activities in India have remained buoyant in H1 FY2026. However, ICRA will closely monitor the situation, as macroeconomic and geopolitical factors evolve.

• Bengaluru recorded 16.3 million square feet (msf) of fresh Grade-A office supply in FY2025 and 8.4 msf in H1 FY2026, against net absorption of 18.4 msf and 10.1 msf, respectively. As net absorption outpaced supply, occupancy increased by 230 bps to 90.8% by September 2025 from 88.5% in March 2024. The absorption is driven by strong demand from the GCCs^. Despite an expected 16.0 - 17.0 msf of new supply in FY2026 and FY2027, occupancy levels are projected to rise to 91.0-91.5% by March 2026 and 92.0-92.5% by March 2027, backed by continued leasing momentum.
• Bengaluru has the highest Grade-A office supply contribution of 26% (~277 msf) among India’s top six cities* as on September 30, 2025. Outer Ring Road (Southeast), Whitefield, and Nagavara are Bengaluru’s leading micromarkets, together contributing approximately 37% of the city’s total office supply. ICRA expects vacancy levels to continue to be low in Outer Ring Road (SE), given healthy net absorption. With no new supply anticipated in FY2027, Whitefield and Nagavara are projected to experience a substantial reduction in vacancy rates, driven by sustained healthy absorption.