Bengaluru Office Rents Set to Climb by 5-7% in 2025, Driven by IT and AI Demand
The demand from the IT sector and AI research labs is expected to push Bengaluru’s office rentals up by 5-7% in 2025. The Executive Centre, a flexible workspace provider, is bullish on expansion in Whitefield and is exploring opportunities in north Bengal
BengaluruOffice RentsIt SectorAi ResearchFlex SpacesReal EstateFeb 05, 2025
This optimistic forecast was shared by Manish Khedia, Managing Director of The Executive Centre, a flexible workspace provider based in Hong Kong.
While Bengaluru has seen significant interest from global capability centres (GCCs) in the past year, the focus is now shifting towards the IT sector and AI research labs.
Frequently Asked Questions
What is the expected increase in office rentals in Bengaluru by 2025?
The office rentals in Bengaluru are expected to increase by 5-7% in 2025, driven by the IT sector and AI research labs.
Which sectors are driving the demand for flex spaces in Bengaluru?
The IT sector, AI research labs, online gaming startups, and pharmaceutical companies are driving the demand for flex spaces in Bengaluru.
How has the supply and demand mismatch affected flex office space rentals in Bengaluru?
The mismatch between supply and demand has led to a 20% increase in flex office space rentals in prime central business district areas in Bengaluru over the past year.
What is the current range of flex office space rent in Bengaluru?
The current rent for flex office spaces in Bengaluru ranges from ₹6,000 to ₹40,000 per seat, with Grade A developers offering seats between ₹15,000 to ₹50,000 per seat.
What are The Executive Centre's expansion plans in Bengaluru?
The Executive Centre plans to add over 50 lakh square feet of flex space to its portfolio by 2025 and is particularly bullish on expansion in Whitefield and north Bengaluru.
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