Office Expansion in Bengaluru: Key Drivers Behind Tech Major’s Growth

Bengaluru continues to strengthen its position as India’s premier technology and Global Capability Centre (GCC) hub, as major tech companies ramp up their office expansion in the city. Despite growing global concerns around AI-driven job disruption, companies like Google, Amazon, Microsoft, Infosys, and Accenture are taking significant office space in Bengaluru, reflecting confidence in the city’s deep talent pool, infrastructure, and long-term growth potential.

The surge in office expansion in Bengaluru highlights the city’s unique combination of skilled talent, high-quality Grade-A office space, and strategic micro-markets, making it a preferred destination for technology-led operations.

Major Tech Companies Driving Office Expansion

Several global and domestic tech giants are significantly increasing their footprint in Bengaluru:

• Google is expanding its Alembic City campus in Whitefield by over 2.6 million sq ft. A phased strategy allows the company to scale operations efficiently as business needs evolve. Earlier, Google IT Services India leased 6.5 lakh sq ft in the same campus, with additional blocks reserved exclusively for future expansion.
• Amazon inaugurated its second-largest Bengaluru office in Kattigenahalli, spanning over 1 million sq ft at a monthly rent of ₹6.1 crore for a 10-year lease. The office will house teams building global products, services, and technologies.
• Infosys has leased approximately 5 lakh sq ft in Bengaluru for ₹2.3 crore monthly rent over a 10-year term, while Microsoft and IBM India Private Limited expanded into Outer Ring Road and Embassy Golflinks Business Park with 1.8 lakh sq ft and 1.61 lakh sq ft, respectively.

According to industry experts, these expansions signify sustained long-term confidence in Bengaluru, despite macroeconomic and AI-related uncertainties.

Micro-Markets and Preferred Office Locations

Bengaluru’s office expansions are concentrated in key micro-markets:

• Outer Ring Road, Whitefield, and North Bengaluru remain the most active corridors, attracting both domestic IT firms and multinational GCCs.
• Eastern micro-markets, including Sarjapur, Marathahalli, KR Puram, and Whitefield, see dense GCC activity due to established vendor networks and superior infrastructure.
• Airport-adjacent North Bengaluru is emerging as a high-potential market, supported by improved connectivity and residential supply.

These micro-markets offer flexibility, scalable inventory, and connectivity, enabling large tech occupiers to consolidate operations efficiently.

Strategic Drivers Behind Office Expansion in Bengaluru

Several factors contribute to the robust office expansion in Bengaluru:

1. Talent Availability: Bengaluru boasts a deep pool of engineering, AI, and technology professionals, attracting GCCs and multinational tech companies.
2. Flexible Workspaces: Companies prefer large campuses that allow phased expansion and operational efficiency.
3. Multi-Sector Ecosystem: Beyond IT, Bengaluru spans pharmaceuticals, BFSI, automotive, and emerging technology sectors, supporting diverse business operations.
4. Institutional & REIT-backed Inventory: Professionally managed, high-quality office space provides long-term scalability and operational reliability.

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Supply-Side Advantage Over Other Cities

Bengaluru offers a structural edge compared to Hyderabad, Pune, and Mumbai:

• Approximately 230–240 million sq ft of Grade-A office stock, significantly ahead of southern peers.
• While rentals are around 20% higher, occupiers accept them due to sustainability standards and quality construction.
• Contiguous supply allows companies to plan for future expansion, unlike Mumbai’s BKC, where space constraints limit large-scale growth.

Institutional-grade and REIT-owned assets provide professional management and long-term flexibility, making Bengaluru a preferred hub for tech giants.

Role of GCCs and IT Occupiers

GCCs dominate Bengaluru’s office absorption, accounting for 45–50% of total leasing activity, while domestic IT firms contribute only about 10%. Occupiers are consolidating operations into larger campuses to enhance collaboration, with strategies evolving to multiple centers based on operational needs.

This trend reinforces Bengaluru’s status as India’s top GCC destination and highlights the city’s long-term attractiveness for global technology players.

Implications for the Bengaluru Real Estate Market

The expansion of offices by tech majors signals strong market fundamentals:

• Reinforces Bengaluru as the leading technology hub in India.
• Encourages Grade-A leasing activity and investor confidence.
• Highlights continued demand for premium office space and long-term lease commitments.
• Indicates resilience of Bengaluru’s office market even amid AI-driven workforce concerns.

Eastern micro-markets and Outer Ring Road corridors will continue to attract high leasing activity, driven by GCC expansion and infrastructure improvements.

Conclusion

Bengaluru remains India’s top destination for office expansion, driven by tech majors like Google, Amazon, Infosys, Microsoft, and Accenture. The city’s deep talent pool, scalable Grade-A office inventory, strategic micro-markets, and GCC dominance continue to fuel long-term leasing demand.

For developers, investors, and occupiers, monitoring high-growth corridors such as Whitefield, Sarjapur, and North Bengaluru is critical, as office expansion in Bengaluru is set to remain strong through 2026 and beyond. The trend underscores the city’s resilience as a technology and GCC hub, offering scalable opportunities for the growing tech ecosystem.