Bengaluru Office Rents may Rise 5-7% in 2025 Amid IT and AI Demand

07 Feb 2025 CW Team

Bengaluru’s office rental market is set to experience a 5-7 per cent increase in 2025, driven by growing demand from the IT sector and AI-driven research labs. The city's office space requirements have been steadily rising, particularly with the expansion of global capability centres (GCCs) in recent years. This trend has now been further fuelled by increased interest from technology firms and research institutions specialising in artificial intelligence.

The Indian government’s push to establish AI research labs has contributed significantly to this demand. Additionally, sectors such as online gaming startups and pharmaceuticals are showing strong interest in flexible workspaces, positioning them as key drivers for the flex office sector in the coming year.

However, the gap between supply and demand for premium Grade A flexible office spaces has led to increased input costs for several operators, particularly in Bengaluru. Prime locations within the city’s central business district have already witnessed a 20 per cent surge in rental prices over the past year. The rising operational costs have further pressured workspace providers to optimize office rentals while maintaining operational efficiency.

As businesses continue to prioritize flexible workspaces, the sector is expected to evolve with more cost-effective and innovative solutions to meet the growing demand. The increasing presence of AI research, IT firms, and emerging industries is likely to shape Bengaluru’s commercial real estate landscape, solidifying its position as a leading hub for technology-driven enterprises.

News source: The New Indian Express

Infrastructure Transport

01 Sep 2025

Indian Railways Marks New Milestone with 4.5 km Long ‘Rudrastra’ Trial

Indian Railways has successfully conducted the trial run of Asia’s longest freight train, named ‘Rudrastra’, achieving a new milestone in cargo transportation, as per news reports. The 4.5 km-long train began its trial from Ganjkhwaja railway station in Chandauli, Uttar Pradesh, and travelled to Garhwa in Jharkhand. Covering a distance of 209 km in 5 hours and 10 minutes, it maintained an average speed of 40.5 km per hour. The train was formed by combining three long-haul racks, with ..

UltraTech Launches India’s First On-Site Hybrid RTC Renewable Energy Project

UltraTech Cement has operationalised a 7.5 MW round-the-clock (RTC) hybrid renewable energy project at its Sewagram Cement Works in Gujarat. The first-of-its-kind solution combines bifacial solar modules with trackers, wind energy and battery storage, co-located on-site, to ensure uninterrupted power for cement manufacturing without grid reliance. The project was executed in collaboration with clean energy solutions provider Gentari. Installed as a behind-the-meter system, it is the country..

Patna Metro Trials Successful, Red Line Priority Corridor to Launch This Month

Patna is set to roll out its first metro rail service later this month, with successful trial runs conducted on the Red Line priority corridor, the Patna Metro Rail Corporation announced.On 7 September, a metro train completed a test run between the Patna depot and Bhootnath station. Officials said the trials involved rigorous checks of rolling stock fitness, overhead electrification (OHE), and track alignment and stability to ensure operational safety and performance.The corridor from the New Pataliputra Bus Terminal to Bhoothnath has been designated as the priority stretch and will be the fi..