India Poised to Become World's 4th Largest Office Market, Nearing 1 Billion Sq Ft
India's commercial real estate sector is on the verge of a historic milestone, with Bengaluru, NCR, and Mumbai driving significant growth.
IndiaOffice MarketReal EstateCommercial PropertyGrowthReal EstateAug 05, 2025
This milestone represents a monumental leap from just 192 million sq ft in 2005, growing at a compound annual growth rate (CAGR) of 8.6% over the last 20 years. With 993 million sq ft of office stock recorded as of June 2025, India now stands on the brink of global real estate recognition, trailing only China (6.26 bn sq ft), the US (10.2 bn sq ft), and Japan (1.77 bn sq ft).
Among the top contributors, Bengaluru leads with 229 mn sq ft (23%), followed by NCR at 199 mn sq ft (20%), and Mumbai Metropolitan Region (MMR) with 169 mn sq ft (17%). These three cities together account for 60% of India’s total office stock, driven by strong demand from global capability centres (GCCs), IT/ITeS, and multinational occupiers.
Other significant contributors include:
Hyderabad – 123 mn sq ft (12%)
Pune – 106 mn sq ft (11%)
Chennai – 92 mn sq ft (10%)
Ahmedabad – 41 mn sq ft (4%)
Kolkata – 34 mn sq ft (3%)
CAGR for Bengaluru, NCR, MMR, Hyderabad, Chennai, and Pune is over a 20-year time frame, while for Kolkata and Ahmedabad, it is over an 11-year and 9-year timeframe, respectively.
India’s Cost Advantage: Global-Quality Spaces Under $1/sq ft
As of 2025, average office rents have dipped below $1/sq ft/month, standing at $0.96, giving India a distinct “sub-dollar advantage” in the global office landscape. A defining competitive edge of India’s office market lies in its remarkable cost efficiency, especially when benchmarked in dollar terms.
This price-performance combination has led to the rapid expansion of Grade A workspaces, now making up 53% of India’s office stock, attracting increased attention from institutional investors and multinational tenants alike.
“India’s sub-dollar rental positioning is a powerful differentiator. Occupiers are now focused on quality, ESG compliance, and flexibility — areas where India is increasingly excelling,” said Viral Desai, Senior Executive Director, Knight Frank India. India’s office demand has transformed dramatically from 1990 to 2025, evolving from a tech-industry support base into a global hub for capability centres, rising in the value chain.
Grade-Wise Composition Shows Maturity
The report reveals that Grade A buildings account for 53%, followed by Grade B at 43%, and Grade C at 4% of total supply. Cities like Bengaluru (70%), Hyderabad (68%), and Chennai (64%) lead in Grade A development, while older markets like Mumbai and NCR have a more balanced mix.
India’s Office Market: From Volume to Value
India’s journey to 1 billion sq ft has passed through seven phases of transformation, from supporting tech firms in the 1990s to becoming a global hub for GCCs and financial services. The implementation of SEZ policies, infrastructure investments, and regulatory reforms have further accelerated this growth.
“Crossing the 1 bn sq ft mark is more than symbolic — it showcases the resilience and institutional depth of India’s office market,” said Shishir Baijal, CMD, Knight Frank India. “India now offers a compelling value proposition for global capital and corporate occupiers alike.”
Global Ranking and Future Outlook
Once India crosses 1 billion sq ft in Q3 2025, it will officially become the fourth-largest office market in the world, surpassing key global peers. Looking ahead, India could double its office stock to 2 billion sq ft between 2036–2041, depending on economic and policy momentum. Based on GDP growth forecasts and institutional absorption trends, the report estimates:
At a CAGR of 12.7%, India reaches 2 bn sq ft by 2036
At a CAGR of 10.9%, the mark is achieved by 2041
Frequently Asked Questions
What is the current office stock in India as of June 2025?
As of June 2025, India has recorded 993 million sq ft of office stock.
Which cities are the top contributors to India's office stock growth?
Bengaluru, NCR, and Mumbai Metropolitan Region (MMR) are the top contributors, accounting for 60% of India’s total office stock.
What is the average office rent in India as of 2025?
As of 2025, the average office rent in India has dipped below $1/sq ft/month, standing at $0.96.
What is the grade-wise composition of India's office stock?
Grade A buildings account for 53%, Grade B for 43%, and Grade C for 4% of the total office stock.
What are the future projections for India's office market?
India could double its office stock to 2 billion sq ft between 2036–2041, depending on economic and policy momentum.
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