In the first three months of 2025, Bengaluru saw its strongest demand for office space since the pandemic. Companies took up 3.2 million square feet of office space, which is the highest amount recorded for any first quarter, based on data from JLL.

This growth shows how companies across different industries are expanding in the city. Areas like Outer Ring Road, Whitefield, and Sarjapur Road, where residential projects like Birla Evara are coming up, are especially seeing the impact.

Who's Taking All This Office Space?

Earlier, Bengaluru's offices were mostly taken by IT companies. But now, other sectors are stepping in too.

• Manufacturing and engineering firms were the biggest takers this time. They made up 32.5% of all leases.

• IT and software companies still play a big role, contributing around 33%–38% depending on the report.

• Global Capability Centres (GCCs) leased over 3.3 million sq ft, almost 40% of the country's total in this category.

• Banks and financial services (BFSI) took about 18–22%.

• Co-working spaces added 11–13% of the demand, showing that hybrid work is here to stay.

This mix shows that Bengaluru isn't just a tech city anymore—it's becoming a multi-industry business hub.

Is There Enough Office Space?

Yes, more office buildings are being added. But what's interesting is that vacancy levels are still dropping.

• Bengaluru added between 2.9 and 4.2 million sq ft of new office space in Q1 2025.

• Despite this, vacancy dropped to 11.4%, which means more companies are moving in as soon as space becomes available.

According to Cushman & Wakefield, vacancy is even lower—just 9.7%.

This tells us that companies want to be in Bengaluru, and they're not waiting around.

Rents Are Going Up Too

With demand rising, rents are also increasing, especially for premium buildings in good locations.

Many businesses now want Grade A offices—spaces that are well-built, energy-efficient, and close to transport. They're willing to pay more for quality.

This is good news for investors. As rents go up, so do property values. In fact, Bengaluru attracted the highest real estate investments in Q1 2025, even more than Mumbai and Delhi, as per CBRE.

Where Are the Office Hotspots?

Some parts of Bengaluru are clearly ahead when it comes to office leasing:

• Outer Ring Road (ORR): Still the most active zone with big office parks.

• Whitefield and Sarjapur Road: Popular because of easy access and nearby housing. Projects like Birla Evara on Sarjapur Road give professionals a chance to live close to work.

• Hebbal and Devanahalli (North Bengaluru): Getting more attention because of new metro lines and airport access.

• MG Road, Koramangala, and Indiranagar (CBD/SBD): Still in demand, though space here is limited and expensive.

What's Next for 2025?

Experts expect the demand to stay strong for the rest of the year.

• Total office space taken up in 2025 could reach 12 to 16 million sq ft, says JLL.

• GCCs, fintech companies, and R&D centres are expected to grow further.

• New metro lines and the Peripheral Ring Road (PRR) will open up more office locations.

As more jobs are created, people will need homes nearby. That's why projects like Birla Evara, located close to key office zones, are getting attention from working professionals and real estate investors.

In Short

Bengaluru is leading India's office space growth in 2025. With record leasing, falling vacancies, rising rents, and a growing mix of industries, the city is showing why it's still the top choice for businesses.

Whether you're a company looking to expand or someone thinking about buying a home near work, places like Sarjapur Road offer a smart mix of career and lifestyle. And as projects like Birla Evara grow, they reflect the changing face of Bengaluru—modern, connected, and ready for the future.