Bengaluru Strengthens GCC Leadership as Office Leasing Surges in H1 2026

Bengaluru has once again emerged as India’s leading destination for Global Capability Centres (GCCs), reinforcing its status as the country’s commercial real estate powerhouse. According to Knight Frank India’s India Real Estate: Residential and Office H1 2026 report, the city recorded 14.1 million square feet of office transactions during the first half of 2026. Of this, 8.5 million square feet came from GCC leasing, accounting for 60% of the total office transactions, up from 53% in the same period last year.

The city’s commercial office market also witnessed a strong supply pipeline, with 10.4 million square feet of new Grade A office completions. At the same time, average office rents increased 8% year-on-year to ₹102 per square foot per month, reflecting sustained occupier demand for premium office developments.

AI, Deep-Tech and Flexible Workspaces Fuel Growth

While Bengaluru has long been recognised for its technology sector, the latest growth is being driven by companies operating in artificial intelligence, semiconductors, and deep technology. Existing GCCs are also expanding their engineering, research, and innovation teams, further strengthening demand for high-quality office space.

Flexible workspace operators remained another major contributor, accounting for nearly 20% of the city’s leasing activity. Popular business districts such as Outer Ring Road and PBD East continued to attract occupiers looking for large, institutional-grade office campuses with strong connectivity and access to skilled talent.

Commenting on the market, Rahil Gibran, Executive Director, Occupier Strategy and Solutions, Bengaluru, Knight Frank India, said, “Bengaluru’s office market continues to demonstrate exceptional resilience despite global economic uncertainties.” He added, “The increasing scale of GCC leasing, coupled with growing enterprise adoption of flexible workspaces, indicates that Bengaluru’s role within global corporate real estate strategies is becoming increasingly strategic rather than purely operational.”

Residential Market Benefits from Commercial Growth

The city’s commercial success is also driving momentum in the housing sector. Bengaluru recorded sales of 27,968 residential units during H1 2026, representing a 5% year-on-year increase, while developers launched 34,749 new homes, up 4% from last year. Average residential prices climbed 9% to ₹9,354 per square foot, supported by healthy buyer demand, rising construction costs, and increasing interest in premium housing.

North Bengaluru emerged as the fastest-growing residential corridor, benefiting from the expansion of office developments around Hebbal, Airport Road, and Devanahalli. Improved metro connectivity, airport-led growth, and new employment hubs are creating a strong link between commercial expansion and housing demand.

Bengaluru’s Growth Story Looks Sustainable

Premium housing continued to dominate the residential market, with homes priced between ₹1 crore and ₹2 crore leading sales, while the ₹2 crore to ₹5 crore segment recorded the fastest growth. This trend reflects rising incomes and changing buyer preferences driven by Bengaluru’s expanding knowledge economy.

Highlighting the city’s long-term outlook, Gibran said, “North Bengaluru is increasingly evolving into one of India’s most compelling residential investment destinations as commercial development, airport-led growth and large-scale infrastructure projects converge to create a powerful long-term growth story.”

With multinational companies continuing to expand their operations in India and next-generation industries accelerating investment, Bengaluru’s office and residential markets are becoming more closely connected than ever. As infrastructure, employment, and corporate expansion continue to reinforce one another, the city remains at the forefront of India’s evolving commercial real estate landscape.