Upgrade of 105 million sq ft offices in top Indian 3 cities to offer 40% rent growth: Report

MUMBAI: Office properties spread over nearly 105 million sq ft have potential to be upgraded across key cities including Mumbai, Bengaluru and New Delhi. While this provides for rental escalation of up to 40%, it requires investments worth Rs 5,480 crore, showed a JLL India report.

“We see that while 64% of India’s grade A office space is concentrated in its top 3 cities, 28% of such spaces are at least a decade old, sans the latest facilities that newer buildings offer. Upgrading these buildings presents a massive investment opportunity of an estimated Rs 5,500 crore,” said Ramesh Nair, CEO & Country Head, JLL India.

Of this, the country’s commercial capital Mumbai holds potential to upgrade 44 million sq ft of grade A office space and offers rental escalation opportunity of up to 40%, the maximum of key markets, post this upgrade. The offices in Mumbai need Rs 2,610 crore for this upgrade.


Delhi-National Capital Region (NCR) is likely to offer rental escalation of 5-30% for offices spread over 26.4 million sq ft that can be upgraded at the cost of Rs 1,560 crore. Bengaluru can upgrade office stock of 34.5 million sq ft with investment of Rs 1,310 crore and offer rental escalation of 4-25% post this exercise, the report said.