India’s office real estate market is on the cusp of a historic milestone, with total office stock expected to cross 1 billion square feet (bn sq ft) by Q3 2025, making it the fourth largest office market in the world. Knight Frank India’s report, A Billion sq ft and Counting – India Office Supply Growth Story, highlights how this expansion reflects the market’s growing global relevance, institutionalization, and cost competitiveness.
From under 200 million sq ft in 2005 to nearly 1 bn sq ft in 2025, India’s office stock has grown at an impressive CAGR of 8.6% over the past two decades. Bengaluru, the National Capital Region (NCR), and Mumbai Metropolitan Region (MMR) have been at the forefront of this growth, collectively accounting for 60% of the country’s office supply. According to the report, cumulative office stock across the top eight Indian cities reached 993 mn sq ft as of H1 2025, with Bengaluru leading at 229 mn sq ft (23%), followed by NCR at 199 mn sq ft (20%), and Mumbai at 169 mn sq ft (17%).
India’s office stock is currently valued at INR 16 trillion (USD 187 billion), showcasing its emergence as a globally significant investment destination. While Hyderabad, Pune, and Chennai contribute a combined 33% to the overall supply, Ahmedabad and Kolkata make up the remaining 7%. Interestingly, Ahmedabad has clocked the highest CAGR at 11.3% due to its recent acceleration in commercial activity.
Grade A office spaces, which are increasingly in demand among multinational corporations and Global Capability Centres (GCCs), account for 53% of India’s office stock. Cities like Bengaluru, Hyderabad, and Chennai dominate in premium Grade A supply, while legacy markets such as Mumbai and NCR maintain a more balanced mix of Grade A and Grade B. Kolkata, on the other hand, has the highest proportion of Grade C buildings at 11%, reflecting an opportunity for asset upgradation and redevelopment.
One of India’s most defining competitive advantages is its cost efficiency in global terms. Average office rents in 2025 are at USD 0.96 per sq ft per month, maintaining the country’s unique sub-dollar rental status. This affordability, combined with the growing supply of sustainable, tech-enabled, and ESG-compliant workspaces, positions India as a preferred hub for multinational occupiers seeking cost-effective, high-quality real estate solutions.
Looking ahead, India’s office sector is evolving from volume-led growth to value-driven expansion, emphasizing modern design, sustainability, and productivity-focused spaces. Knight Frank projects that the next billion sq ft could be added between 2036 and 2041, depending on economic momentum and absorption trends. With the nation’s ambition to become a USD 10 trillion economy by 2030 and the rapid growth of its digital workforce, the demand for world-class office infrastructure is only set to rise.
India’s ascent to the world’s fourth-largest office market underscores its transformation into a global office powerhouse: resilient, future-ready, and poised for sustained growth.
