India to become fourth-largest office market with 1B sq-ft space
What's the story
India is on the verge of becoming the world's fourth-largest office market, according to a report by property consultant Knight Frank India. The country's total office stock is expected to cross the 1 billion square feet mark by Q3 of 2025. The report, titled "A Billion sq ft and Counting - India Office Supply Growth Story," highlights India's rapid growth in commercial real estate.
Growth trajectory
Office market growth over last 2 decades
The Indian office market has witnessed a compound annual growth rate (CAGR) of 8.6% over the last two decades. It has grown from less than 200 million sq ft in 2005 to nearly 1 billion sq ft by 2025. This growth is fueled by institutionalization, a maturing ecosystem of developers and occupiers, and rising investor interest, establishing India as a global corporate real estate hub.
City contributions
Top cities contributing to total office stock
The report reveals that the cumulative office stock across India's top eight cities stood at 993 million sq ft as of June 30, 2025. Bengaluru leads with a contribution of 23% (229 million sq ft), followed by NCR (20%) and Mumbai Metropolitan Region aka MMR (17%). These three cities together contribute to nearly 60% of the country's total office space.
Market valuation
Total office stock valued at ₹16 lakh crore
India's total office stock is valued at a whopping ₹16 lakh crore ($187 billion). MMR tops the list with the highest valuation of ₹4.2 trillion ($41 billion), followed by Bengaluru and NCR. Shishir Baijal, Chairman and Managing Director of Knight Frank India, said this milestone reflects the growing institutionalization and global relevance of India's office market.
Affordability factor
India offers cost-effective office spaces
India's office market is also known for its cost competitiveness. The average rent in India's Grade A office space fell to $0.96 per sq ft per month in 2025, making it a sub-dollar rental market. This affordability, combined with the demand for tech-enabled and ESG-compliant workspaces, is driving the growth of global capability centers (GCCs) across Indian cities.