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Industry body CII and real estate consultant Knight Frank India released a report on commercial real estate on Friday.
“India is the fourth largest office market globally and has now achieved an important milestone by crossing the 1 billion sq ft threshold in total office stock… Office stock is currently valued at approximately Rs 16.4 trillion (US$186 billion), reflecting the depth and resilience of the sector,” the report said.
It said that from 200 million sq ft in the early 2000s to 1 billion sq ft in 2025, this remarkable expansion underlines India’s emergence as one of the fastest growing and most future-ready office markets in the world.
The consultant said gross leasing of office space is set to exceed 70 million sq ft in 2024 and reach 67 million sq ft in the first nine months of 2025, underscoring the structural strength of the market despite global macroeconomic uncertainties.
“At this juncture, the Indian office market stands at a turning point. The combination of limited new supply, rising occupier demand and cautious developer sentiment is setting the stage for a period of rental appreciation, valuation uplift and strategic recalibration,” the report said.
To sustain its growth momentum and achieve the next milestone of 2 billion sq ft office stock, the CII-Knight Frank report suggested that India should adopt a dual strategy, accelerating new supply creation while increasing the productivity of existing assets.
“The massive slowdown in India’s office real estate market is not simply a result of post-Covid caution, it is increasingly driven by project-level economics that prioritize residential over commercial development,” the report notes.
Residential capital values per square foot in key micro-markets have far outstripped comparable commercial projects, sometimes by more than 2-3 times, the consultant said.