Bengaluru home sales rise to 27,968 units as office leasing leads India in H1 2026

Bengaluru's residential and commercial real estate markets recorded steady growth in the first half of 2026, with home sales rising five percent year-on-year to 27,968 units. According to a report by property advisory firm Knight Frank India, the city also registered 14.1 million square feet of office space transactions, securing the highest commercial volume in the country.

New housing project launches in Bengaluru increased by four percent to 34,749 units during the six-month period. Residential prices continued their upward trajectory, rising nine percent year-on-year to an average of ₹9,354 per square foot. The report attributed this price hike to healthy absorption and a continuing market shift toward higher-value homes.

Although the residential sector experienced some moderation compared to the decadal highs of 2025, overall demand remained resilient. Knight Frank India noted that the city's expanding economic base, growing high-value employment, and the deepening presence of multinational companies sustained housing demand despite rising prices and affordability pressures.

In the commercial segment, Bengaluru's office transactions topped the national chart at 14.1 million square feet. New office completions surged to 10.4 million square feet as several delayed Grade A developments were completed during the first half of the year. This robust demand pushed average transacted office rents up by eight percent year-on-year to ₹102 per square foot per month.

Global Capability Centers (GCCs) remained the primary driver of commercial leasing, accounting for 60 percent of the city's total office transactions. Bengaluru recorded 8.5 million square feet of GCC-led office space leasing in the first half of 2026, the highest among all Indian cities. Beyond traditional technology occupiers, artificial intelligence has also emerged as a key demand driver.

Rahil Gibran, Executive Director of Occupier Strategy and Solutions in Bengaluru for Knight Frank India, stated that the city's office market continues to demonstrate exceptional resilience despite global economic uncertainties. He noted that the city's ability to consistently attract GCC investments reflects its competitive advantages, including a highly skilled talent pool, a mature technology ecosystem, and world-class office infrastructure.