NEW DELHI: A recent report by Knight Frank India indicates that India’s total office stock will exceed one billion square feet by Q3 2025.
The report reveals that the cumulative office space in the top eight Indian cities was 993 million sq ft as of H1 2025. From less than 200 million sq ft in 2005, the office supply has experienced a compound annual growth rate (CAGR) of 8.6%, approaching one billion sq ft by 2025.
Bengaluru currently leads with 229 million sq ft, representing 23% of India’s total office stock. It is followed by the National Capital Region (NCR) with 199 million sq ft (20%), and Mumbai with 169 million sq ft (17%). Together, these three regions make up 60% of the country’s office supply.
Hyderabad, Pune, and Chennai contribute an additional 33%, while Ahmedabad and Kolkata account for the remaining 7%.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, stated, “Reaching the one billion sq ft milestone is more than just a statistic; it signifies the growing institutionalization, maturity, and global importance of India’s office market.”
The current value of India’s office inventory stands at ₹16 trillion (USD 187 billion). Grade A office spaces constitute 53% of this inventory, followed by Grade B at 43%, and Grade C at 4%. Cities like Bengaluru, Hyderabad, and Chennai have a higher proportion of Grade A properties, driven mainly by demand from IT and Global Capability Centers (GCC).
In contrast, mature markets such as Mumbai and NCR show a more balanced distribution across different grades. Kolkata has the highest concentration of Grade C spaces at 11%, highlighting a need for asset upgrades and redevelopment in the area.
A key advantage of India’s office market is its cost-effectiveness. Average rents are projected to drop to USD 0.96 per sq ft per month by 2025, solidifying India’s competitive edge in global markets. This affordability, combined with an increasing supply of Grade A spaces, has boosted the growth of GCCs, enhancing India’s role in multinational real estate strategies.
The report anticipates that India could add its next billion sq ft of office stock between 2036 and 2041, depending on market growth rates. Under a high-growth scenario of 12.7% CAGR, this could occur by 2036, whereas a more conservative projection of 10.9% CAGR would push this milestone to 2041.
