Approximately 50% of India's office inventory across its top seven cities, encompassing integrated technology parks and standalone properties, represents stock exceeding a decade in age. This significant proportion, out of a total stock of approximately 882 million sq. ft., suggests strong potential for retrofitting and subsequent value enhancement
Notably, ~27% of the total office stock in India is over 15 years old and 23% is ~10–15 years old, while just 28% is less than 5 years old. The ageing stock highlights the urgent need for strategic upgrades and retrofitting to align with evolving workplace expectations and sustain asset competitiveness.
The report further reveals that nearly 45% of India’s decade-old office stock—over 200 million sq. ft.—is concentrated in Bengaluru and Delhi-NCR, while Mumbai and Chennai account for another 32%. This underscores the substantial potential for asset upgradation in these key gateway markets. Rising demand for modern workspaces makes upgrading older office assets a strategic priority, turning outdated buildings into competitive, high-performing properties.
As per the report, office buildings—spanning ~434 mn. sq. ft.—have been estimated as candidates for upgradation, based on asset ownership and age. These assets represent an investment potential of about INR 304 to 520 billion. Retrofitting assets can meet occupier expectations around sustainability, wellness, and tech-readiness—while offering potential rental premiums of up to 20% (and even potentially surpassing 30-40% in some instances), depending on market conditions.
Across key 7 Indian cities, strategic retrofitting presents a transformative opportunity to unlock asset value and meet evolving occupier demands. In Bengaluru, approximately 130-140 mn. sq. ft. of the city’s 230 mn. sq. ft. office stock—concentrated in ORR, EBD, and Whitefield—offers an upgrade potential worth INR 95–162 billion. Retrofitting these assets can yield rental premiums of up to 20%3, making it a compelling value-enhancement strategy.
Chennai offers similar potential, with about 52-57 mn. sq. ft. of its 89 mn. sq. ft. stock identified for upgrades, particularly in OMR Zone 1, OMR Zone 2 and Mount Poonamallee High Road. The estimated assets present an investment opportunity of INR 39–66 billion, with rental premiums expected to yield up to 20%3.
In Gurugram, around 45-50 million sq. ft. of its 95 mn sq. ft. office inventory is ripe for retrofitting, largely concentrated in DLF Cybercity, Golf Course Road, Ext. Golf Course Road, and NH8 (before-Rajiv Chowk). Upgrading the identified properties could offer an investment opportunity of INR 33–56 billion, with achievable rental premiums up to 30%3.
Together, these city-level opportunities underscore the potential of strategic retrofitting to reshape India’s commercial office landscape, driving both asset performance and long-term occupier satisfaction.
Gurjot Bhatia, Managing Director - Asia, PJM Advisory, Turner & Townsend, said, "India's office market stands at an exciting crossroads. With about 434 million sq. ft. of existing office spaces, we see a significant opportunity to not just modernize but to truly elevate these assets for the future. The path forward involves a holistic approach which includes bolstering safety, access, and compliance through measures like advanced CCTV surveillance and door frame metal detectors, enhancing amenities and lifestyle with gymnasiums, daycare facilities, and retail outlets, and creating vibrant outdoor and community spaces featuring landscaped areas and sculptures. By strategically retrofitting with a focus on data-driven insights, sustainability, and the evolving needs of occupiers, we can transform this existing stock into high-performance, resilient workplaces that meet the demands of tomorrow's tenants and an increasingly ESG-conscious investment landscape."
