Bangalore’s Commercial Real Estate Market Booms in 2025: Office Rentals Spike, Retail and Co-working Demand Soars, New Hotspots Emerge

The latest trends in Bangalore’s commercial real estate market for 2025 show a strong surge in demand across multiple segments including office spaces (both rentals and sale), retail/showroom spaces, co-working spaces, and industrial warehouses.

Office Space Trends

  • Office leasing activity has surged by about 26-34% year-on-year, driven largely by the IT, ITeS, and Global Capability Centers sectors.
  • Rental growth for Grade A office spaces is expected at 5-8% in prime micro-markets such as Whitefield, Outer Ring Road (ORR), Koramangala, and MG Road.
  • Market rent for premium office spaces has crossed ₹100 per square foot per month in Bangalore.
  • Emerging hotspots include Sarjapur Road, Hebbal, North Bangalore, and Electronic City, showing a shift from traditional CBD areas.
  • Hybrid work models are reshaping demand with a rise in flexible leasing, managed office spaces, and co-working solutions. Startups and SMEs prefer these, especially in Koramangala and HSR Layout.

Commercial Office Prices and Sales

  • Commercial properties for sale see demand in key locations with prices for ready-to-use office spaces touching significant investment figures.
  • Brigade Group and other developers offer Grade A office spaces with flexible sizes and configurations in prime hubs like OMR, Marathahalli, and Whitefield.

Retail and Showroom Spaces

  • Bangalore leads India’s retail leasing with 34% share in Q1 2025, with over 3 million square feet leased.
  • Fashion and apparel dominate showroom and retail rental demand, followed by food and beverage and entertainment sectors.
  • New mall openings (about 5 malls in Q1 2025) have added around 2 million sq ft of retail space, contributing to continued growth.
  • Retail hotspots include MG Road, Koramangala, and other vibrant commercial areas.

Co-working Spaces

  • Flexible co-working spaces in Bangalore are booming, favored by startups and smaller teams for affordable, functional office alternatives.
  • The demand for co-working has seen a historic rise with a 22% quarterly demand increase reported in 2024.

Industrial Warehouses and Sheds

  • Though specific 2025 pricing data is sparse, industrial spaces including warehouses and sheds remain important, particularly around Bangalore’s periphery and industrial corridors catering to logistics and manufacturing needs.

Price Surge and Hotspots Summary

SegmentHotspotsPrice/Rent Surge
Office SpacesWhitefield, ORR, Koramangala, Sarjapur Road, Hebbal, North Bangalore, Electronic City5-8% rental growth Y-o-Y, Rs 100+ per sq ft market rental
Retail & ShowroomMG Road, KoramangalaLeading retail leasing with 34% share nationally, new malls adding supply
Co-working SpacesKoramangala, HSR LayoutSignificant quarterly demand increase (~22%)
Industrial SpacesPeriphery/industrial corridorsSteady demand but price info not detailed

Overall, Bangalore remains a top commercial real estate market in India in 2025, marked by strong demand and rising prices in office, retail, and flexible workspace segments, with clear shifts towards decentralized work zones and hybrid-office models.​

One Response to "Bangalore’s Commercial Real Estate Market Booms in 2025: Office Rentals Spike, Retail and Co-working Demand Soars, New Hotspots Emerge"

  1. Pingback: Latest Property Launches in Bangalore: Hot Residential and Commercial Real Estate in Q4 2025 – blog.bangaloreproperties.com

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