Bengaluru: Knight Frank India in its latest report, India Real Estate: Office and Residential (January – March 2026) Q1 2026 cited that Bengaluru continues to drive the Indian office market expansion with recorded transactions of 9.2 mn sq ft, contributing more than 30% of the total office space transacted across eight Indian cities.
More than 30% of the new office supply across leading eight cities in the country was concentrated in Bengaluru. New office completions were recorded 4.4 mn sq ft., almost 4 times from 1.1 mn sq ft in Q1 2025. The robust demand-supply economics has translated into a new rental high of INR 100.6 per sq ft/month. This is the first time that average transacted rent of Bengaluru’s office market has crossed the price level of INR 100 per sq ft/month.
The 28% decline in overall transactions is only owing to the historic peak scaled in Q1 2025 with big ticket size transactions including precommitments. Bengaluru continues to remain a strong growth market in the country.
End-User Categories: 64% of GCC driven office transactions
About 41% of the GCC oriented leasing activity across eight leading cities was recorded in Bengaluru, accounting to 5.9 mn sq ft in Q1 2026. GCCs recorded more than 64% of the overall office transaction volume in the city.
About 28% of the transactions in flex workspaces across eight cities were recorded in Bengaluru. Flex workspaces recorded transactions of 1.4 mn sq ft, followed by Third-party IT with 1.1 mn sq ft and India facing business with 0.7 mn sq ft.
Rahil Gibran, National Director, Occupier Strategy and Solutions, Bengaluru, Knight Frank India said, “Despite escalated geopolitical stress, GCCs continue to expand their office portfolio in Bengaluru. Shifting occupier needs have also led them to lease in flexible workspaces and highest transactions have been accounted in Bengaluru. This is a testament of strong economic fabric of the city and growing importance of our country in the global landscape. Residential sector in Bengaluru remains robust with indicative preference for mid to premium housing segments in the city.”
Knight Frank India cited that, amongst the cities with the large market base, Bengaluru’s residential market has expanded its sales by 5%YoY to 13,092 units in Q1 2026 from 12,504 units in Q1 2025. This is a significant milestone in a quarter when the sales of Indian residential markets have declined by 4% and carries downward risk of a slowdown. It also is the only large residential market to witness launches increase by 4% YoY to 17,185 units from 16,524 units in Q1 2025. The Weighted average price of residential market has increased by 4% to INR 8,952 per sq ft, marked as historic high for the city.
The segment with ticket size of INR 10-20mn dominated sales in the residential segment, accounting to 6,190 units. Bengaluru also leads in sales volume across eight markets in the country. Ticket size of INR 20-50 mn emerged as the second largest residential segment with sales of 3,235 units. Bengaluru stands second in this segment category across eight markets in the country. There is a sharp decline in sales volume of <INR 5 mn and INR 5-10 mn by 30% and 60% respectively. The highest expansion was seen in INR 100-200 mn ticket size segment, with an increase of 181% YoY increase from sales of just 5 units in Q1 2025 to 14 units in Q1 2026.
Overall, while the affordable price segments have declined, the mid and luxury price segments have recorded a significant high in the residential sales.
