Bengaluru, April 4, 2024: Knight Frank India in its latest report, India Real Estate: Residential and Office (January – March 2025) Bengaluru witnessed an exceptional office transaction volume of 12.7 million square feet (mn sq ft) in Q1 2025, with pre-commitments accounting for 7.4 mn sq ft. This unprecedented surge positioned the city as the leader among India’s top eight[2] office markets. Marking its strongest quarterly performance to date, Bengaluru recorded a staggering 259% year-on-year (YoY) growth from 3.5 mn sq ft in Q1 2024. The city contributed 45% of total office transactions across major Indian markets, reaffirming its status as a dominant commercial hub.
All India Office Transaction and New Completion (Q1 2025)
| Office Transactions
(Mn Sq Ft) |
Completions
(Mn Sq Ft) |
||||||
| Cities | Q1 2025 | Q1 2024 | % Change YoY | Cities | Q1 2025 | Q1 2024 | % Change YoY |
| Bengaluru | 12.7 | 3.5 | 259% | Pune | 3.5 | 1.8 | 99% |
| Hyderabad | 4.0 | 3.0 | 31% | Bengaluru | 1.1 | 5.0 | -79% |
| Pune | 3.7 | 1.9 | 91% | Mumbai | 0.5 | 0.4 | 43% |
| Mumbai | 3.5 | 2.8 | 24% | NCR | 0.2 | 1.6 | -88% |
| NCR | 2.1 | 3.1 | -33% | Chennai | 0.2 | – | – |
| Chennai | 1.8 | 1.2 | 56% | Ahmedabad | – | 0.5 | -100% |
| Kolkata | 0.16 | 0.2 | -16% | Kolkata | – | – | – |
| Ahmedabad | 0.2 | 0.5 | -54% | Hyderabad | – | 3.7 | -100% |
End-User CategoriesBengaluru’s office market witnessed a surge in demand, primarily driven by Global Capability Centres (GCCs), which contributed to 65% of all transactions. The city recorded a remarkable 345% YoY growth in GCC transactions, underscoring its appeal as a key destination for Global Capability Centres.
| End-User Licensee/Buyer | Third Party IT | GCC | Flex | India-Facing Business | Total |
| Area transacted in mn sq ft | 2.1 | 8.0 | 1.4 | 1.2 | 12.7 |
Viral Desai, Senior Executive Director, Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets and Retail Agency, Knight Frank India, said “Bengaluru’s commercial real estate market continues to thrive, supported by strong occupier demand, expansion by technology firms, and a growing footprint of GCCs. The city has reinforced its position as a preferred destination for corporate occupiers, particularly in flex office spaces, which have seen unprecedented growth. Moreover, the strong pre-commitment activity in upcoming Grade A developments reflects forward-looking confidence in Bengaluru’s long-term potential. On the residential front, premium and mid-segment properties are seeing strong traction, driven by improving affordability and a growing preference for larger homes.”
Residential Market Update: January – March 2025
The residential market experienced marginal decline of 5% YoY in sales, with 12,504 units sold in Q1 2025 compared to 13,135 units in Q1 2024. Despite this, average residential prices soared to INR 7,116 per sq ft—the highest since Q1 2018—reflecting a 16% YoY increase. The quarter also witnessed the launch of 16,524 new units, reflecting sustained developer confidence in Bengaluru’s housing market.
Bengaluru Residential Market Summary
| Sales | Launches | |
| City | Q1 2025 | Q1 2025 |
| Bengaluru | 12,504 | 16,524 |
Home Price Ticket Categories
Bengaluru’s higher ticket-size residential segment INR 50–100 mn recorded the highest YoY growth in sales in Q1 2025, surging 133% from 80 units in Q1 2024 to 187 units in Q1 2025. The INR 10–20 mn category remained the dominant segment, accounting for 36% of the city’s total transactions. A total of 4,507 units were sold in this bracket, marking a 3% YoY increase.
Ticket-Size Split of Sales
| Ticket Size Categories | <5 mn | 5-10 mn | 10-20 mn | 20-50 mn | 50-100 mn | 100-200 mn | 200 – 500 mn | >500 mn | Total |
| Q1 2025 | 1,368 | 3,998 | 4,507 | 2,439 | 187 | 5 | – | – | 12,504 |
| YoY % change | 38% | -34% | 3% | 52% | 133% | -65% | -100% | – | -5% |
Shantanu Mazumder, Executive Director Bengaluru, Knight Frank India, said “The residential market in Q1 2025 experienced a slight dip in YoY sales volume. However, the average residential price soared with a significant 16% YoY increase reflecting healthy market dynamics. This reflects a robust demand despite the slight decline in overall YoY sales.”