India Poised to Become World's Fourth Largest Office Market by 2025
India is set to become the world’s fourth-largest office market as its total office stock is projected to surpass one billion square feet (sq. ft.) by Q3 2025, according to Knight Frank India. As of H1 2025, the stock stood at 993 million sq. ft., up from under 200 million sq. ft. in 2005, marking a Compound Annual Growth Rate (CAGR) of 8.6%. Bengaluru, the National Capital Region (NCR), and Mumbai account for nearly 60% of this, followed by Hyderabad, Pune, and Chennai (33%).
Grade A spaces dominate the market with a 53% share, while the total office stock is valued at Rs. 16,00,000 crore (US$ 182 billion). The sector’s growth is fuelled by rising institutionalisation, consistent policy support, including Special Economic Zone (SEZ) regulations and real estate investment trust (REIT) frameworks, and India’s evolving role in the global economy. Cost efficiency remains a key advantage, with average rents at just Rs. 84.15 (US$ 0.96) per sq. ft. per month, bolstering interest from multinational corporations.
The Indian office real estate sector is now at an inflection point, with the transition from back-office operations to global capability centres (GCCs) shaping demand for modern, tech-enabled workspaces. Cities like Bengaluru, Hyderabad, and Chennai lead in Grade A supply, driven by the Information Technology (IT) and GCC sectors, while older hubs like Mumbai and NCR show a more balanced distribution. With increasing occupier demand and policy reforms improving transparency, the sector is poised for its next growth phase.
Knight Frank forecasts that India could add another one billion sq. ft. between 2036 and 2041, depending on growth trajectories. As India targets an Rs. 8,76,50,000 crore (US$ 10 trillion) economy by 2030, the demand for sustainable and efficient workspaces is set to rise significantly. The sector's future looks promising, with ongoing policy support and a growing number of tech-driven firms relocating to India.
