India’s commercial real estate sector is poised to achieve a major milestone, with total office stock set to cross the 1 billion square feet mark by the third quarter of 2025, according to Knight Frank
India’s latest report titled ‘A Billion sq ft and Counting – India Office Supply Growth Story’. The study underscores India’s rapid ascent in the global office real estate arena and positions the country as the fourth-largest office market in the world by total stock.
From under 200 million sq ft in 2005 to nearly 1 billion sq ft in 2025, the Indian office market has expanded at a compound annual growth rate (CAGR) of 8.6% over two decades. This growth, driven by institutionalisation, a maturing ecosystem of developers and occupiers, and rising investor interest, signals India’s transition into a globally significant corporate real estate destination.
Bengaluru, NCR, and Mumbai Drive Growth
According to the report, the cumulative office stock across India’s top eight cities stood at 993 million sq ft as of June 30, 2025. Bengaluru leads with 229 million sq ft, contributing 23% of the total stock, followed by the National Capital Region (NCR) with 199 million sq ft (20%) and Mumbai Metropolitan Region (MMR) with 169 million sq ft (17%). These three cities alone account for 60% of the country’s office space.
Other key contributors include Hyderabad (123 mn sq ft), Pune (106 mn sq ft), and Chennai (92 mn sq ft), while Ahmedabad and Kolkata make up the remaining 7%. The total value of India’s office stock stands at Rs 16 lakh crore ($187 billion), with MMR having the highest valuation at Rs 4,249 crore ($41 billion), followed closely by Bengaluru and NCR.
‘A Reflection of Global Relevance’
Commenting on the milestone, Shishir Baijal, chairman and managing director of Knight Frank India, said, “As we prepare to cross the 1 billion sq ft threshold, it’s not just a number, it reflects the growing institutionalisation, maturity, and global relevance of India’s office market. This transformation has been powered by an ecosystem of world-class developers, investors, and occupiers who have continually raised the bar.”
He added that India now offers a compelling value proposition for multinational businesses and institutional capital alike.
India’s Sub-Dollar Rental Advantage
One of the defining features of the Indian office market is its cost competitiveness. The average rent in India’s Grade A office space declined to $0.96 per sq ft per month in 2025, reinforcing its unique status as a sub-dollar rental market. This affordability, combined with rising demand for tech-enabled, ESG-compliant workspaces, is fuelling the expansion of global capability centres (GCCs) across Indian cities.
Viral Desai, senior executive director at Knight Frank India, said, “India’s sub-dollar rental positioning is a powerful differentiator in the global office landscape. This milestone validates the country’s strategic evolution from volume-led expansion to value-driven growth.”
From Expansion to Evolution
The report tracks the evolution of India’s office market through seven phases between 1990 and 2025. Once a back-end support hub for global tech companies, India now ranks among the world’s most sought-after destinations for capability centres, high-end corporate functions, and innovation hubs. Reforms such as SEZ policies, infrastructure investment, and improved ease of doing business have propelled this growth.
Gulam Zia, senior executive director at Knight Frank India, called the development “a defining moment” for the Indian office sector. “Crossing the 1 billion sq ft mark 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,” he said.
Grade Composition Highlights Quality Transition
Grade A office space now accounts for 53% of India’s total stock, followed by Grade B at 43% and Grade C at 4%. Cities like Bengaluru, Hyderabad, and Chennai lead in Grade A supply due to sustained demand from the IT and GCC sectors. In contrast, older commercial hubs like Mumbai and NCR have a more mixed grade profile. Kolkata stands out with the highest share of Grade C properties at 11%, signalling opportunities for asset upgrading and repositioning.
Looking Ahead: A Second Billion by 2040
Knight Frank projects that India’s office stock could double to 2 billion sq ft between 2036 and 2041, depending on the pace of expansion. At a projected 12.7% CAGR, this milestone could be achieved by 2036; even at a more conservative 10.9% CAGR, it could arrive by 2041. These projections are based on expected GDP growth, rising formalisation, and sustained real estate absorption trends.
The report concludes that India’s office market is not just growing in size but also in sophistication, reflecting an ecosystem that is increasingly aligned with global standards in quality, sustainability, and investor appeal.
