Bengaluru Office Space Leasing Drops 28% In Q1: Report

Net leasing of office, too, declined in Bengaluru by 33 per cent to 24.9 lakh square feet in January-March 2025 from 36.9 lakh square feet in the corresponding period of the last year

The continued commitment of global occupiers to expand operations here signals enduring confidence in India as a strategic business destination, he added

Source : Freepik

Bengaluru -- the most prominent office market in India -- saw a 28 per cent decline in leasing of gross office space to 48.6 lakh square feet during January-March this year, according to Cushman & Wakefield.

The gross leasing of workspace in Bengaluru stood at 67.4 lakh square feet in the year-ago period.

Net leasing of office, too, declined in Bengaluru by 33 per cent to 24.9 lakh square feet in January-March 2025 from 36.9 lakh square feet in the corresponding period of the last year.

However, Bengaluru witnessed a 52 per cent increase in new supply of office space to 32.8 lakh square feet from 21.5 lakh square feet. The vacancy rate of office space in Bengaluru stood at 9.7 per cent in the first quarter of this calendar year.

Real estate consultant Cushman & Wakefield said the gross leasing of office space rose 4.5 per cent to 202.9 lakh square feet in January-March 2025 across eight major cities from 194.2 lakh square feet in the year-ago period. Net leasing of office space in the top 8 cities grew 20 per cent to 134.4 lakh square feet from 112.3 lakh square feet.

The eight cities are Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Pune, Hyderabad and Ahmedabad.

"The momentum in India's office sector has carried into Q1 2025, supported by steady closures of large deals and robust fresh leasing activity," said Anshul Jain, Chief Executive - India, SEA & APAC Tenant Representation, Cushman & Wakefield.

The continued commitment of global occupiers to expand operations here signals enduring confidence in India as a strategic business destination, he added.

"While we remain watchful of evolving global economic conditions, India's position as the global hub for tech, R&D, and innovation continues to strengthen," Jain said.

The strong performance of the GCC segment - now contributing over 30 per cent of gross leasing - underscores this confidence, he said, adding that this trajectory to continue with more greenfield entries and expansion mandates.

"Additionally, domestic economic factors like easing inflation and anticipated rate cuts will further support occupier activity. With a resilient demand base, rising flexible space uptake, and healthy supply additions in key micro-markets, we anticipate the office market will maintain its growth footing in the quarters ahead," he said.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)