India's Office Market Surges: 1 Billion Square Feet Milestone and Sub-Dollar Rents
India's real estate market is on the verge of a historic achievement — the total office stock is expected to surpass 1 billion square feet by Q3 2025, driven by affordable rents, robust demand, and Grade A supply.
Real EstateOffice MarketSubdollar RentsGrade A SupplyGccReal EstateAug 04, 2025
India's office stock across the top 8 Indian cities stood at 993 million square feet as of H1 2025. Bengaluru leads the pack with a 23% growth, reaching 229 million square feet, followed by the National Capital Region (NCR) with 199 million square feet (20%) and Mumbai at 169 million square feet (17%). These three cities collectively account for 60% of the total office stock. Hyderabad, Pune, and Chennai contribute another 33%, while Ahmedabad and Kolkata make up the remaining 7%.
India’s office market showcases a varied grade mix, with Grade A spaces comprising 53% of the total supply, followed by Grade B at 43% and Grade C at 4%. Cities like Bengaluru, Hyderabad, and Chennai lead in Grade A stock due to strong IT and Global Capability Centre (GCC) demand. Legacy markets like Mumbai and NCR exhibit a more balanced grade mix, reflecting slower transitions.
India’s sub-dollar advantage is a defining competitive edge, especially when benchmarked in dollar terms. The office market in India saw average rents decline to $0.96 per square foot per month in 2025, reinforcing its sub-dollar status globally. This affordability, paired with rising Grade A supply, has accelerated the growth of GCCs, making India one of the biggest GCC markets.
Amit Ramani, Chairman and MD of Awfis Space Solutions, highlights the significance of this milestone. “India’s office market is on the cusp of a significant milestone. This marks a defining moment for the country’s commercial real estate landscape and sets the stage for Awfis’ next phase of growth. The increasingly institutionalized supply of Grade A, ESG-compliant offices is enabling us to deliver premium infrastructure at competitive price points while meeting the evolving expectations of occupiers who value flexibility, design, and sustainability,” Ramani tells Fortune India. Awfis operates across 18 cities, including nine Tier-2 cities, and aims to expand its footprint through sustainable, tech-enabled workspaces developed in partnership with leading real estate players and landlords.
Viral Desai, Senior Executive Director of Capital Markets and Retail Agency at Knight Frank India, emphasizes the strategic evolution from volume-led expansion to value-driven growth. “India’s ability to offer modern, tech-enabled, green-certified workspaces at sub-dollar rates presents a compelling proposition for global enterprises looking to optimize costs while enhancing workplace experience.”
Gulam Zia, Senior Executive Director of Research, Advisory, Infrastructure, and Valuation at Knight Frank India, notes the sector’s resilience and growth trajectory. “Crossing this mark in 2025 highlights India’s ascent as one of the fastest-growing, most future-ready office markets globally, a testament to our emergence as a true global office powerhouse.”
India’s office demand has transformed dramatically from 1990 to 2025. The market evolved from a tech-industry support base into a global hub for capability centres, rising in the value chain. The report attributes milestones like the Special Economic Zone (SEZ) policy, regulatory improvements, and infrastructure investments, which enabled the market to reach the 1 billion square feet mark, underscoring scale, quality, and institutional depth.
Experts suggest that bridging India’s office growth gap requires policy and capital interventions to address supply constraints or risk rental inflation, occupier shifts, and missed investment opportunities amid rising demand. “As we prepare to cross the 1 billion square feet threshold, it’s not just a number; it reflects the growing institutionalization, maturity, and global relevance of India’s office market. It also reinforces India’s positioning as a global economic powerhouse, offering a compelling value proposition for multinational businesses and institutional capital,” says Shishir Baijal, Chairman and Managing Director of Knight Frank India.
In the coming years, India’s office market is expected to see huge demand for modern, future-ready spaces as it strives to become a $10 trillion economy by 2030. The biggest growth drivers in the office market will be India's young digital workforce, low-dollar rents, and rising institutional interest, according to Knight Frank. As the market continues its growth journey, it's expected to add its next billion square feet by 2036–2041.
Frequently Asked Questions
What is the expected total office stock in India by Q3 2025?
The total office stock in India is expected to surpass 1 billion square feet by Q3 2025.
Which cities lead in Grade A office supply in India?
Bengaluru, Hyderabad, and Chennai lead in Grade A office supply due to strong IT and GCC demand.
What is the average rent per square foot in India's office market as of 2025?
The average rent in India's office market declined to $0.96 per square foot per month in 2025.
What factors have contributed to the growth of India's office market?
Key factors include the SEZ policy, regulatory improvements, and infrastructure investments, which have enabled the market to reach the 1 billion square feet mark.
What is the projected growth of India's office market by 2030?
India’s office market is expected to see huge demand for modern, future-ready spaces as it strives to become a $10 trillion economy by 2030.
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