India Poised to Become World's Fourth-Largest Office Market with 1 Billion Sq Ft of Commercial Stock
India's office market is set to cross the 1-billion-square-foot mark by Q3 2025, making it the world's fourth-largest office market, according to a report by Knight Frank India. This growth is driven by economic resilience, investment, and urban expansion.
IndiaOffice MarketCommercial Real EstateReal Estate GrowthOffice StockReal Estate NewsAug 04, 2025
Bengaluru, NCR, and MMR collectively account for 60% of India’s total office stock, while Hyderabad, Pune, and Chennai contribute another 33%. The remaining 7% is concentrated in Ahmedabad and Kolkata, highlighting the urban-centric nature of India’s office market expansion, the report said.
From under 200 million square feet in 2005 to nearly 1 billion square feet in 2025, India’s office market has grown at a compound annual growth rate (CAGR) of 8.6% over the past two decades. As of June 2025, India had already reached 993 million square feet of total office stock. According to Knight Frank, milestones such as the SEZ policy, regulatory improvements, and infrastructure investments have enabled the market to reach this significant mark.
Looking ahead, Knight Frank projects that India could add another 1 billion square feet of office stock by 2036–2041, depending on economic momentum and real estate formalization. Shishir Baijal, chairman and managing director of Knight Frank India, stated, “India is on the brink of a transformational decade in commercial real estate. This growth is being driven by world-class developers, global capital flows, and a digital, urban workforce that continues to expand.”
India’s top three markets, Bengaluru, NCR, and Mumbai, together account for nearly 60% of the country’s total office stock. Bengaluru leads the pack with 229 million square feet (23%), followed by the National Capital Region (NCR) with 199 million square feet (20%), and Mumbai Metropolitan Region (MMR) with 169 million square feet (17%). Cities like Hyderabad (123 million square feet), Pune (106 million square feet), and Chennai (92 million square feet) are also major contributors, collectively making up another 33%. The remaining 7% comes from Ahmedabad and Kolkata.
The report highlighted that Grade A office spaces now constitute 53% of the total stock, with the balance made up of Grade B (43%) and Grade C (4%) properties. Bengaluru stands out with 70% Grade A office stock, followed closely by Hyderabad (68%) and Chennai (64%), reflecting strong demand from tech and Global Capability Centres (GCCs).
Gulam Zia, senior executive director at Knight Frank India, noted, “India’s office market is not just growing, it’s maturing and evolving. Crossing the 1 billion square foot threshold is a testament to our resilience and long-term economic fundamentals.”
According to Knight Frank India, average office rents in the country have declined to just $0.96 per square foot per month in 2025, reinforcing India’s unique position as a ‘sub-dollar’ rental market. This affordability, combined with rising Grade A supply and growing compliance with global ESG (Environmental, Social, Governance) standards, has made India increasingly attractive to multinational occupiers.
Viral Desai, senior executive director at Knight Frank India, commented, “India’s sub-dollar rental positioning is a powerful differentiator in the global office landscape. It validates India’s shift from volume-led growth to value-driven development. With occupiers prioritizing ESG compliance, productivity, and location efficiency, India’s ability to offer tech-enabled, green-certified workspaces at low costs presents a compelling proposition for global enterprises.”
Frequently Asked Questions
What is the projected growth of India's office market by 2025?
India's office market is set to cross 1 billion square feet by Q3 2025, making it the world's fourth-largest office market.
Which cities contribute the most to India's office stock?
Bengaluru, NCR, and Mumbai together account for nearly 60% of India’s total office stock, with Bengaluru leading at 23%, NCR at 20%, and Mumbai at 17%.
What factors have driven the growth of India's office market?
The growth is driven by India's status as an affordable ‘sub-dollar’ rental market, sustained economic growth, increasing institutional investment, and strong resilience in global office demand.
What percentage of India's office stock is Grade A?
Grade A office spaces now constitute 53% of the total stock, with Bengaluru leading at 70%, followed by Hyderabad at 68%, and Chennai at 64%.
What is the average office rent in India as of 2025?
According to Knight Frank India, average office rents in the country have declined to just $0.96 per square foot per month in 2025.
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