India, Feb. 5 -- Driven by demand from the IT sector and AI-driven research labs, Bengaluru's office rentals are expected to rise by 5-7% in 2025, said Manish Khedia, Managing Director (South India, West India, and Sri Lanka) at Hong Kong-based flexible workspace provider Executive Centre.

While Bengaluru saw significant demand from the global capability centres last year (GCCs), it is currently witnessing an uptick in demand from the IT sector and AI-driven research labs. "This can also be attributed to a major push from the Indian government to set up these research labs. We also saw major queries from online gaming startups and pharmaceutical companies. These sectors will be a game changer for the flex sector in 2025," he added.

The ...