Ola Gives Up 1.7 Lakh Sq Ft Office Space in Bengaluru

• Ola gives up 1.7 lakh sq ft office space in Bengaluru across Koramangala and Electronic City

• AI automation cited as key reason behind reduced office requirement

• Bengaluru remains India’s top office leasing market despite space surrender

Bengaluru: Ola gives up 1.7 lakh sq ft office space in Bengaluru as the mobility major accelerates AI automation across its operations, signalling a strategic shift in workspace requirements.

According to property documents accessed via Propstack, Ola has surrendered over 1.7 lakh sq ft of leased office space spread across prime business locations in the city. The move comes as the company increases automation of several functions, reducing the need for large office teams.

A major portion of the surrendered area — around 1.12 lakh sq ft — was located on the 7th and 8th floors of Prestige RMZ Star Tech in Koramangala. The space had been leased in April 2023 for a five-year term at a monthly rent of ₹1.4 crore, with a reported security deposit of ₹8.4 crore.

The exit from this premium property marks a significant recalibration in Ola’s real estate strategy.

The remaining 60,000 sq ft was located at Infozone in Electronic City, where Ola had leased multiple spaces between 2021 and 2022. Sources indicate that some of this facility housed the company’s battery innovation centre.

Industry insiders say AI automation is central to the decision. “Several processes have been automated. With AI handling many backend and customer-facing operations, fewer employees are required. That naturally reduces office space demand,” a source said.

For example, call centre operations have reportedly been streamlined through AI-driven systems, lowering the need for multiple physical office setups.

While Ola gives up 1.7 lakh sq ft office space in Bengaluru, the broader commercial real estate market in the city continues to remain robust.

Since early 2026, multiple global firms have signed large leasing deals:

• Morgan Stanley leased around 1.6 lakh sq ft at Ecoworld on the Outer Ring Road–Sarjapur stretch for nearly five years at a monthly rent of ₹1.92 crore.

• Honeywell Technology Solutions Lab Pvt Ltd leased close to 4 lakh sq ft in Bellandur’s RMZ Ecoworld, committing to a seven-year tenure with a total rental outlay of ₹429 crore.

These transactions underline Bengaluru’s continued dominance as India’s leading office destination.

According to Knight Frank India, Bengaluru recorded 28.7 million sq ft of office leasing in 2025, marking a sharp 58.9% increase compared to 2024.

Global Capability Centres (GCCs) accounted for a major share of demand, reinforcing the city’s reputation as India’s technology and innovation capital. Flex space operators also captured a sizable portion of gross leasing activity.

When Ola gives up 1.7 lakh sq ft office space in Bengaluru, it reflects a larger trend in corporate India — companies are reassessing physical workspace needs as AI automation and hybrid work models reshape operations.

However, Bengaluru’s overall office market momentum suggests that while individual firms may downsize, global demand for high-quality office space in the city remains strong.

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