This handbook serves as a comprehensive guide, offering valuable insights into Bengaluru’s dynamic commercial real estate market. As the city solidifies its position as India’s premier commercial hub, it is essential for occupiers, investors, and developers to have a well-rounded understanding of market trends, leasing standards, investment opportunities, and taxation frameworks.

• India’s Grade A office market saw substantial growth in 2024, with total stock reaching 860 million sq. ft. and net absorption of 49.6 million sq. ft. Bengaluru, Delhi NCR, and Mumbai accounted for 63% of total office stock, reflecting sustained demand for premium office spaces. With a city-wide vacancy rate of 17% and rental appreciation of 4.5%, the market remains favourable for investors.
• This guide provides an overview of each micro-market, including stock positioning, prevailing rental, vacancy levels, emerging occupier profiles, and major lease transactions across Bengaluru\'s six (6) micro-markets. Here are the key insights from the major office micro-markets:
  • The Central Business District (CBD) is in high demand, especially from BFSI and consulting firms, leading to premium rental rates.
  • The Outer Ring Road (ORR) remains the best-performing micro-market, contributing to 33% of net office space absorption.
  • Whitefield is experiencing strong demand, driven by improved metro connectivity.
  • Meanwhile, North Bengaluru is emerging as a key investment hub due to ongoing infrastructure development and its proximity to the airport.
• This guide offers comprehensive understanding of Grade A commercial office specifications and key leasing terms based on market practices in Bengaluru.
• It also covers a breakdown of operational costs, including rent, maintenance charges, and property taxes, helping occupiers and investors manage expenses effectively. And it outlines investment criteria for Grade A office buildings and their impact on rental yields, assisting investors in making informed decisions.

This guide also provides a clear understanding of capital gain taxation and regulatory frameworks, including GST rules, where commercial rents are taxed at 18%, with certain exemptions for SEZ properties.

This guide helps corporate occupiers and tenants with the insights needed to find the best office spaces in Bengaluru while providing investors and developers with prevailing market trends, returns, and growth opportunities.