IBM India Private Limited has signed a 10-year lease for 2.83 lakh sq ft of office space at Bagmane Tech Park in Bengaluru, with the total rental outlay estimated at ₹343 crore, according to property documents accessed by Propstack. The transaction reflects continued demand for large office spaces from technology companies seeking facilities for their operations and research and development activities.
The company has leased space across the ground floor and the first, second and third floors of Bagmane Solarium City – Radon in Bengaluru. The lease commenced on February 5, 2026, while the lease deed was formally executed on May 29 and registered on October 1, 2026.
Akruthi Infra-Build Developers Private Limited owns the property. According to the documents, IBM will pay a monthly rent of ₹2.49 crore, calculated at ₹88 per sq ft. The lease agreement provides for a rental escalation of 15% every three years. IBM has also paid a security deposit of ₹14.96 crore.
Additional Fit-Out Rent Adds to Lease Commitment
Apart from the regular rental payments, IBM will pay fit-out rent of ₹2.98 crore per month for five years, until March 2031. The total fit-out rent over this period is estimated at approximately ₹179 crore.
The arrangement adds to the company’s overall occupancy expenditure for the Bengaluru office. Fit-out provisions are relevant for large corporate occupiers as they support the preparation of office premises for operational requirements.
IBM could not be reached for comment on the transaction.
Raja Seetharaman, co-founder of Propstack, said the deal reflected continued interest among large technology companies in high-grade, scalable office spaces in Bengaluru. He noted that long-term leasing commitments, combined with developer-backed fitted infrastructure, indicated occupiers’ preference for Grade-A properties and the city’s position as a centre for global technology research and core operations.
Bengaluru Continues to Lead Office Leasing Demand
IBM’s latest transaction comes amid sustained activity in Bengaluru’s commercial office market. A recent report by Colliers India showed that office leasing across the country increased 7% quarter-on-quarter from 17.4 million sq ft in the previous quarter.
Bengaluru continued to lead office demand, recording 5.2 million sq ft of leasing during the third quarter of 2026, representing an 11% year-on-year increase.
The city’s established technology sector, availability of large office campuses and demand from multinational companies continue to support leasing activity. Transactions involving substantial office areas and long-term agreements also indicate occupiers’ preference for securing space that can accommodate their operational requirements over an extended period.
IBM Expands Office Portfolio Across Indian Cities
The latest Bengaluru lease follows other significant office transactions by IBM India in the country. Earlier in 2026, the company leased 2.3 lakh sq ft of office space in Gurugram for a total rental outlay of ₹180 crore over 10 years.
The Gurugram property is located on floors seven to 12 of Tower 4 at Intellion Park in Sector 59. Mikado Realtors Private Limited, a Tata Group company associated with Tata Realty and Infrastructure Ltd, is the landlord.
In 2024, IBM India leased 8.3 lakh sq ft of office space in Bengaluru for 10 years, with a starting monthly rent of ₹140 per sq ft. The company also entered into a lease agreement with Midas Projects for 1.06 lakh sq ft across two floors at Divyasree Orion, a 26-acre campus in Hyderabad’s Gachibowli area.
Since entering India in 1951, IBM has expanded its presence across Bengaluru, Hyderabad, Gurugram, Mumbai and Kolkata.
