Ola has surrendered over 1.7 lakh sq ft of office space in Bengaluru, including 1.12 lakh sq ft at Prestige RMZ Star Tech and 60,000 sq ft in Electronic City, as it increases automation. The move contrasts with strong leasing momentum in Bengaluru, which led India’s office market in 2025.
Ola has surrendered more than 1.7 lakh square feet of leased office space in Bengaluru as it accelerates the use of artificial intelligence and automation across its operations, according to people familiar with the matter.
The largest portion—around 1.12 lakh sq ft—was located at Prestige RMZ Star Tech in Koramangala. The space, spread across the 7th and 8th floors, had been leased in 2023 at a monthly rent of ₹1.4 crore. The five-year lease began in April 2023, with a security deposit of ₹8.4 crore, according to registration documents accessed by Propstack.
In addition, the company gave up nearly 60,000 sq ft at Infozone in Electronic City, where it had leased multiple units between 2021 and 2022. Ola operates its battery innovation centre from this location, sources said.
Fewer People, Smaller Footprint
The move reflects a broader operational shift. “The company has automated several processes. Once automation is in place, fewer employees are required, reducing the need for office space. For instance, multiple call centre offices are no longer needed as these functions have been automated using AI,” sources said.
This highlights a growing trend in corporate real estate: technology-led optimisation. As AI takes over repetitive tasks and customer service workflows, companies are reassessing their space utilisation strategies. Traditional large-format office setups, especially for support functions, are being replaced with leaner, tech-enabled models.
While Ola has not yet publicly commented, its decision signals that automation is beginning to influence leasing strategies in India’s top office markets.
Bengaluru’s Market Momentum Continues
Despite concerns around automation and hybrid work, Bengaluru remains India’s strongest office market. Since the start of 2026, several large occupiers have signed significant leases, reinforcing the city’s position as a technology and GCC hub.
In January, Morgan Stanley leased about 1.6 lakh sq ft at Ecoworld on the Outer Ring Road–Sarjapur corridor for a monthly rent of ₹1.92 crore for nearly five years. The property is part of Brookfield Properties’ portfolio.
Similarly, Honeywell Technology Solutions Lab leased close to 4 lakh sq ft in Bellandur for a seven-year term at a total rent of ₹429 crore. The 399,220 sq ft space is located in RMZ Ecoworld and is owned by Arliga Ecoworld Business Parks Private Limited.
GCCs and Flex Lead Demand
According to Knight Frank India, Bengaluru retained its position as the country’s largest office market in 2025, recording 28.7 million sq ft of leasing—up 58.9% year-on-year.
Of this, 63% of the space was occupied by Global Capability Centres (GCCs), reinforcing the city’s role as India’s innovation engine. Across the country, GCCs accounted for 38% of total absorption at 31.8 million sq ft in 2025. Flexible workspaces also remained strong, with 18.8 million sq ft leased, representing a 22% share of total gross leasing.
Ola’s space surrender stands out against this backdrop of strong demand. It reflects a nuanced shift: while Bengaluru continues to attract large enterprise leases, some occupiers are trimming footprints as automation reshapes workforce models. For the office and flexible workspace industry, the message is clear—demand is evolving, not disappearing.
