Bengaluru has emerged as India's fastest-growing prime office rental market, recording an annual growth of 11.5 per cent in the third quarter of 2026, matching Tokyo, according to a report by real estate consultancy Knight Frank. The rise highlights the city's growing importance as a global business and technology hub, driven by demand from multinational companies, global capability centres (GCCs) and domestic businesses.
While the increase in commercial property rentals reflects Bengaluru's strong business appeal, it also raises questions about the cost of living for professionals moving to the city. From residential rents and daily commuting to groceries, dining and lifestyle expenses, living in India's Silicon Valley can be expensive, particularly for those working in major technology corridors.
Bengaluru office rentals rise 11.5 per cent
According to Knight Frank's Asia-Pacific Research Office Markets Q3 2026 report, Bengaluru recorded an 11.5 per cent year-on-year increase in prime office rentals, with rates reaching Rs 2,015 per square foot per annum. This was also a 2.8 per cent increase compared with the previous quarter.
The city's office vacancy rate stood at 13.4 per cent. Global capability centres continued to play a significant role in driving demand, accounting for nearly 50 per cent of Bengaluru's office leasing activity.
Meanwhile, Mumbai recorded annual office rental growth of 4 per cent, while Delhi-NCR registered an increase of 5.4 per cent.
How expensive is it to live in Bengaluru?
Bengaluru's cost of living varies depending on the neighbourhood, accommodation, lifestyle and commuting requirements. According to cost-of-living estimates by Wise, a single person may spend approximately Rs 63,841 per month, including rent and everyday expenses.
Housing remains one of the biggest components of monthly expenditure. The average monthly rent for a one-bedroom apartment in the city centre is estimated at around Rs 30,889, while a similar apartment outside the city centre costs approximately Rs 17,652.
For larger accommodation, a three-bedroom apartment in the city centre can cost around Rs 80,735 per month, compared with approximately Rs 48,441 outside the centre.
However, rents can vary considerably across popular residential and employment hubs such as Whitefield, Koramangala, Indiranagar, HSR Layout, Sarjapur Road and Electronic City.
Food, groceries and monthly expenses
Apart from accommodation, food and groceries contribute significantly to monthly expenses. Wise estimates monthly grocery expenditure for one person at approximately Rs 12,007.
Dining out can add to the overall budget, particularly for professionals who regularly visit restaurants, cafes and entertainment venues. A cappuccino costs approximately Rs 218 on average, while a meal at an inexpensive restaurant is estimated at around Rs 250.
Utilities, including electricity, water and other basic household services, can cost approximately Rs 2,774 per month for an 85-square-metre apartment. Internet services may add another Rs 929 to the monthly budget.
Transport and daily commuting costs
Commuting is another important factor when calculating the cost of living in Bengaluru. The distance between residential neighbourhoods and major employment hubs can influence both travel time and monthly expenses.
According to Wise, a one-way public transport ticket costs approximately Rs 50, while a monthly transport pass is estimated at around Rs 1,275. Cab fares and private vehicle expenses can increase the budget further.
For professionals working in technology corridors such as Outer Ring Road, Whitefield and Electronic City, choosing accommodation closer to the workplace can help reduce commuting time and expenses.
Bengaluru continues to attract companies and professionals
Despite rising office rentals and living expenses, Bengaluru remains one of India's most important employment destinations, particularly for technology, financial services, engineering and global business operations.
According to Cushman & Wakefield's Q3 2026 Bengaluru market report, the city recorded 5.2 million square feet of office leasing during the quarter, with global capability centres accounting for 65 per cent of demand. Outer Ring Road alone contributed 61 per cent of leasing activity.
Separately, JLL reported that Bengaluru accounted for 33.4 per cent of India's gross office leasing activity in Q3 2026, retaining its position as the country's leading office market.
The city's employment opportunities, established technology ecosystem, educational institutions, healthcare facilities and relatively moderate climate continue to attract professionals from across India.
Is Bengaluru still affordable?
Bengaluru offers a combination of employment opportunities, urban infrastructure and lifestyle options, but affordability depends largely on income and residential location. While living outside the city centre can help reduce housing expenses, professionals working in distant business districts may have to factor in additional commuting costs.
With office rentals continuing to rise, the demand for residential accommodation near major employment hubs could remain an important factor shaping the city's housing market.
Bengaluru's growing commercial real estate market reflects its position as a major global business destination. However, the challenge will be balancing economic growth with affordable housing, efficient transport and a sustainable cost of living for the workforce.
