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India's office space stock has surpassed one billion sq ft, valued at around USD 186 billion (INR 16.4 trillion), according to a report by CII and Knight Frank India. The study marks this as a historic milestone, with office stock growing from under 200 million sq ft in the early 2000s to today's scale. Despite global uncertainty, gross leasing exceeded 70 million sq ft in 2024 and reached 67 million sq ft in the first nine months of 2025. The report highlights a supply-demand imbalance, favouring rental growth and valuation gains. To reach two billion sq ft, it recommends boosting new office supply and enhancing existing asset efficiency, alongside rebalancing economics between residential and commercial development.
India's overall office space stock has crossed one billion square feet, representing an estimated market value of about USD 186 billion, according to a report jointly released by the Confederation of Indian Industry (CII) and real estate consultancy Knight Frank India earlier this week. The report emphasised that India has reached a defining milestone by surpassing the one billion sq ft mark in total office stock, valued at nearly INR 16.4 trillion, underscoring the sector's depth and resilience. Advertisement
The analysis traced India's expansion from under 200 million sq ft in the early 2000s to over one billion sq ft in recent years, marking the country's transformation into one of the fastest-growing and most resilient office markets worldwide. The consultant observed that gross leasing activity had surpassed 70 million sq ft in 2024 and had already reached around 67 million sq ft in the first nine months of 2025, reflecting strong structural demand despite global economic uncertainties.
According to the report, the Indian office market now stands at a critical inflection point. A mix of limited new supply, strong occupier interest, and cautious developer sentiment is creating conditions conducive to rental appreciation, valuation uplift, and a strategic realignment across the sector.
To sustain this momentum and reach the next benchmark of two billion sq ft in total office stock, the report recommended that India pursue a twin-track approach-accelerating the creation of new supply while simultaneously enhancing the productivity and efficiency of existing office assets. It further noted that the undersupply in the market stemmed not only from post-pandemic caution but also from project-level economics that currently favour residential over commercial developments.
The consultant added that residential capital values per square foot in key micro-markets had outpaced comparable commercial projects by as much as two to three times, reflecting a shift in developer focus towards housing.
CII and Knight Frank India's assessment suggests that although India's office market remains structurally strong and globally competitive, sustaining its upward trajectory will depend on encouraging new construction and improving existing assets. The report indicated that aligning economic viability for commercial projects and addressing supply constraints would be essential to support future growth and achieve the next scale of expansion in the country's office real estate sector.
Source - PTI
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