India office stock to cross 100 cr sq ft mark: Study

India is set to cross 100 crore sq ft mark (1 billion square feet) for office stock by Q3-2025, according to Knight Frank’s report ‘A Billion sq ft and Counting’. Office supply has grown at a CAGR of 8.6% over 20 years, up from 200 mn sq ft in 2005 to 993 mn sq ft as of H1 2025.

Bengaluru leads with 229 mn sq ft, followed by NCR (199 mn) and Mumbai (169 mn). Together, they account for 60% of total stock. Grade A buildings comprise 53% of the supply. India’s office stock is valued at ₹16 trillion ($187 billion).

Institutionalisation of the market

Chairman Shishir Baijal said, “This milestone reflects the institutionalisation of India’s office market and its growing global relevance.” Viral Desai added that sub-dollar rents, averaging USD 0.96/sq ft/month, enhance India’s competitiveness.

The report shows India trailing the US (10.2 bn sq ft) and China (6.26 bn sq ft), but ahead of several European markets. Cities like Hyderabad and Pune have led expansion in recent years. Gulam Zia said the milestone highlights the sector’s resilience and growth trajectory.

Grade-wise, Bengaluru and Hyderabad have the highest share of Grade Aproperties, while older markets like Mumbai and Kolkata reflect the need for upgrades. Knight Frank provides a market-wise analysis of trends across India’s key metros.

Ahmedabad: Highest growth

Ahmedabad’s office market has reached 41 million sq ft in H1 2025, registering the highest CAGR of 11.3% among India’s top eight office cities, according to Knight Frank. Secondary Business Districts account for 58% of the stock, while Grade B buildings dominate with 75%. Growth is driven by industrialisation, policy reforms, and the rise of GIFT City.

Key demand drivers include pharmaceuticals, engineering, and financial services. Despite low Grade A presence, competitive rentals and increasing institutional interest position Ahmedabad as a rising commercial hub with significant potential for upgrading and attracting global firms.

Bengaluru: Lion’s share

Bengaluru holds the largest share of India’s office space at 229 million sq ft as of H1 2025, forming 23% of the total, per Knight Frank. With 70% of stock as Grade A, it has the highest quality footprint in India. Peripheral Business Districts host 52% of space, led by tech-centric areas like Whitefield. Secondary districts add 39%, while CBDs form just 9%.

Strong infrastructure, talent availability, and growing flex space demand sustain high occupier interest. Metro expansions and retrofitting in key corridors support continued growth and rental stability in the city’s high-grade office segment.

Chennai’s office stock: IT/ITeS dominate

Chennai’s office market has expanded to 92 million sq ft as of H1 2025, with a CAGR of 7.6%, Knight Frank reports. Secondary Business Districts contribute 49%, followed by Peripheral (33%) and Central (18%) zones. About 64% of inventory is Grade A, reflecting disciplined development.

Demand stems from IT/ITeS, electronics, and automotive sectors. The city is also attracting Global Capability Centres. Infrastructure upgrades along OMR and GST Road are shifting occupier focus to outer corridors. Strong Grade A presence and planned growth corridors position Chennai as a future-ready commercial hub in southern India.

Hyderabad: Demand for sustainability

Hyderabad’s office stock reached 123 million sq ft in H1 2025, recording the highest CAGR of 9.2% among top metros, according to Knight Frank. SBDs like HITEC City and Kondapur hold 47% of the stock, while PBDs such as Gachibowli account for 41%. Grade A assets form 68% of supply. Demand is driven by IT, GCCs, and life sciences.

The city’s focus on ESG-compliant, tech-enabled offices supports strong absorption. Competitive rentals and scalable infrastructure continue to attract global firms, making Hyderabad India’s fastest-growing office market with significant investment momentum.

Mumbai: Grade B dominates

Mumbai’s office stock stands at 169 million sq ft as of H1 2025, making it India’s third-largest market, says Knight Frank. SBDs lead with 58% share, while CBDs hold 15% and PBDs 27%. Grade B dominates with 51%, while Grade A comprises 40%. Leasing volumes dipped 5% YoY, but rents rose 12%, the highest among metros.

Flex spaces drove 39% of leasing, followed by GCCs at 11%. Demand for ESG-compliant offices and infrastructure projects like Metro Line 3 and Navi Mumbai Airport support migration to PBDs. The market remains resilient despite limited new completions.

NCR: Second largest office market

The National Capital Region (NCR) has emerged as India’s second-largest office market with 199 million sq ft in H1 2025, contributing 20% to national stock, Knight Frank reports. CBDs account for 44%, the highest among metros. SBDs like Jasola and Aerocity hold 41%, while PBDs such as Greater Noida comprise 15%.

Grade A properties make up 43% of inventory, with 55% in Grade B. Gurugram and Noida lead expansion with infrastructure-led growth. Upcoming projects like Noida Airport and RRTS are expected to boost leasing. The region offers diverse formats for global and domestic occupiers.

Pune: Grade A controls 50%

Pune’s office stock reached 106 million sq ft in H1 2025, growing at a CAGR of 8.9%, Knight Frank states. PBDs such as Hinjewadi and Kharadi contribute 51% of stock, while SBDs add 38%, and CBDs just 11%. Grade A makes up 50% of supply. Driven by tech, GCCs, and R&D demand, Pune offers high-quality, cost-effective spaces supported by talent availability and infrastructure.

Metro and road projects along major corridors are enhancing accessibility. Rising demand and institutional interest are pushing rentals up in newer Grade A properties, reinforcing Pune’s status as a top-tier office market.