IBM India has leased office space of over 1.6 lakh sq ft in Bengaluru, thereby maintaining the demand for very high standard commercial real estate in the largest tech hub of India, in spite of the changed workplace models.
As per the property registration records accsed by CRE Matrix, IBM India Private Limited has procured office space for about 1.61 lakh sq ft on lease at Embassy Golflinks Business Park, which is in the micro-market area of Domlur–Challaghatta, Bengaluru. The lease draws a monthly rent of about ₹2.4 crores that correspond to a rent of almost ₹150 per sq ft, thus making it one of the most significant large-format office transactions in the city this year.
The office space aligns with two stories of the commercial developments. The five years term deal, with rental escalation clauses, as per the prevailing market rental practices for Grade-A office assets, has been signed. The security deposit paid by IBM India is noticeably large and therefore speaks of the long-term occupancy intention and as well as the commitment to the location.
Embassy Golflinks happens to be amongst a few of Bengaluru’s well-known office parks, where the technology and consulting companies of the globe are accommodated. The closeness to the central business district, Indiranagar, and the prominent residential areas are what keep drawing large corporate occupiers, who are in quest of closeness and easy access to talents, towards the location.
The transaction is a timely one for Bengaluru’s office market as it has been experiencing a steady absorption of office spaces, with the major demand sectors being technology services, global capability centres (GCCs), consulting firms, and engineering-led enterprises. The adoption of hybrid work models is still widespread but large corporates are on a move to gather their operations at conveniently located, top-notch quality campuses that can act as venues for collaboration, provide security, and be instrumental in their long-term scaling up.
As per the Colliers report, leasing activity in the seven major office markets of India has been very vibrant in the first nine months of 2025. The space consumption for the year has gone up to 50.9 million sq. ft., which is an 8% year-on-year growth. Nevertheless, there was a slight decline on a quarterly basis with the figure going down to 17.2 million sq. ft. in the third quarter of 2025. Third quarter transaction volumes overall were largely influenced by Bengaluru, but Pune, Mumbai, and Chennai, in particular, saw a significant increase in demand. The three cities together accounted for more than half of the quarterly Grade A office space turnover. It is worth noting that all three cities recorded a year-on-year demand increase of at least 40% in the third quarter of 2025.
Bengaluru’s office market is increasingly characterized by a large occupiers’ preference for Grade-A assets which come with good infrastructure, have sustainability aspects and are situated close to where the talent is. They are not, as one might expect, aggressively cutting down their office space.
IBM has been in India for a long time, and the company’s operations cover software development, cloud services, consulting, research, and enterprise solutions. Besides, Bengaluru is still the major centre for the company’s India operations apart from other cities like Hyderabad, Pune, Chennai, and Gurugram.
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