India Set to Cross 1 Billion Sq Ft Office Space Milestone

India’s top eight cities are on the cusp of achieving a significant milestone in commercial real estate, with total office space stock expected to cross the 1 billion square feet mark by the end of the September quarter, according to property consultant Knight Frank India.

 

The cumulative office stock across cities such as Bengaluru, Delhi-NCR, Mumbai, Hyderabad, Pune, Chennai, Ahmedabad, and Kolkata currently stands at 993 million sq ft, valued at USD 187 billion. The country has witnessed a robust 8.6 percent compound annual growth rate (CAGR) in office supply since 2005, when the figure stood at just 200 million sq ft.

 

This landmark moment positions India as the fourth-largest office market globally, behind only the United States (10.2 billion sq ft), China (6.26 billion sq ft), and Japan (1.77 billion sq ft).

 

Bengaluru leads the Indian office space race with a stock of 229 million sq ft worth USD 49 billion, followed closely by Delhi-NCR at 199 million sq ft (USD 44 billion) and Mumbai Metropolitan Region with 169 million sq ft (USD 41 billion). Hyderabad has 123 million sq ft, Pune 106 million sq ft, Chennai 92 million sq ft, Ahmedabad 41 million sq ft, and Kolkata 34 million sq ft worth USD 4 billion.

 

Knight Frank noted that 53 percent of the total office stock comprises Grade A spaces, with Grade B accounting for 43 percent and Grade C at 4 percent. Over the past three and a half decades, India’s office demand has undergone a transformation, largely driven by the rise of Global Capability Centers (GCCs), which have emerged as major occupiers.

 

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“India's office market is at a defining moment. With 0.99 billion sq ft already achieved, the country is poised to cross the 1 billion sq ft threshold, cementing its place as a global office powerhouse”, said Gulam Zia, Senior Executive Director at Knight Frank India.

 

Shruti Singh, Co-Founder of Carbon Guardians, highlighted the need for sustainability as office development scales further. “The future of office development lies in performance-driven workplaces that align with global sustainability goals and employee wellbeing”, she said.

 

She emphasized the immense opportunity ahead to embed carbon-conscious thinking into every square foot of new office space. “India’s office stock growth is a testament to its economic resilience. As we build the next wave of workspaces, we must prioritize sustainable design and EHS (Environment, Health, and Safety) standards”, Singh added.