India’s occupied office stock approaches 1 billion sq ft milestone

Mumbai: India’s office market continues to expand across its major commercial hubs, with occupied office stock approaching the 1-billion-sq-ft mark. Bengaluru remains the country’s largest office market, while Hyderabad is recording the fastest growth among the larger markets and Pune has crossed a significant threshold of 100 million sq ft.

The expansion reflects sustained growth in occupied office space across the country’s leading markets, although the pace of growth varies across cities, with Hyderabad and Ahmedabad recording stronger increases than several other markets.

Occupied office stock continued to expand across smaller markets, reflecting broader growth across India’s commercial real estate landscape.

Market Snapshot

• Occupied office stock across eight markets reaches 917.7 million sq ft
• Stock increases 7% year-on-year from 859.4 million sq ft
• 58.3 million sq ft added to occupied stock over the year

Larger Market Trends

Bengaluru remains India’s largest office market, followed by NCR, Mumbai and Hyderabad.

Pune crosses the 100-million-sq-ft mark, joining the country’s largest office markets.

Hyderabad records the fastest growth among markets with more than 100 million sq ft of occupied office stock.

NCR records the slowest growth among the larger office markets.
City-wise Occupied Office Stock

Market	Occupied Office Stock (mln sq ft)	YoY Growth
Bengaluru	227.9	9%
NCR	178.3	2%
Mumbai	148.2	5%
Hyderabad	119.8	11%
Pune	101.0	9%
Chennai	89.5	5%
Ahmedabad	28.0	10%
Kolkata	25.0	9%
All India	917.7	7%

Changing occupier mix

• BFSI emerges as the largest GCC-oriented office occupier
• Other services gaining momentum, indicating greater diversification in demand
• IT/ITES absorption corrected amid global technology realignment
• Manufacturing demand remains relatively stable
  
  (Source: Knight Frank India)