Bengaluru Office Leasing Plummets 28% in Q1, Signals Market Setback: Cushman & Wakefield

Bengaluru, a city that houses the information technology sector of India is the most prominent office market in India, saw a 28% decline in the leasing of gross office space to 48.6 lakh square feet during January-March this year, as per Cushman & Wakefield data.

Office Spaces Lose Popularity In Bengaluru

The gross leasing of workspace in Bengaluru stood at 67.4 lakh square feet during the previous year, as per the data.

Net leasing of office space also declined in Bengaluru by 33% 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 city however, witnessed a 52% rise in new supply of office space to 32.8 lakh square feet from 21.5 lakh square feet.

The rate of vacancy for office spaces in Bengaluru stood at 9.7% in the first quarter of the calendar year.

According to real-estate consultant Cushman & Wakefield the gross leasing of office space rose 4.5% 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.

"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.

In these 8 cities, net leasing of office spaces grew 20% 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.

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