The commercial real estate landscape in India is currently at a turning point. While the country’s office market is holding its ground on a global level, there’s an urgent need to modernize its aging infrastructure to stay relevant in an era defined by sustainability, smart technology, and changing occupier expectations. With this new challenge comes the golden opportunity—an estimated ₹45,000 crore ($5.3 billion approx) retrofitting potential across India’s top cities, according to a study by JLL India.
What is Retrofitting and Why is it the Next Big Thing in Indian Office Spaces?
Retrofitting goes far beyond just a quick fix or applying a fresh coat of paint. It involves completely upgrading older office buildings to match today’s commercial space standards. This includes improving the building’s structure, adding modern technologies, making it more energy and water efficient, redesigning the interiors for better use of space, and making the property more resilient to climate challenges.
In India, retrofitting of office buildings is emerging as the next big wave in the commercial sector for several reasons. Firstly, the demand for premium, sustainable office spaces is growing rapidly and companies are increasingly focusing on ESG goals, employee well-being, and operational efficiency. Older buildings often fall short on these fronts.
Notably, India’s top office markets – Bengaluru, Mumbai, Delhi NCR, and Hyderabad are now seeing robust demand for high-quality workspaces. This is because tenants are no longer content with “commodity” office spaces. They’re constantly looking for properties that go beyond the basics—offices that are smarter, greener, and designed to support hybrid work models, employee wellness, and energy efficiency.
But here’s the catch: over 62% of India’s Grade A office stock, or in simple words nearly 530.8 million square feet, needs upgrades to align with these modern standards. These are buildings that were ahead of their time once, but are now falling behind in terms of design, sustainability, and user experience.
Further, from a financial standpoint, upgraded office assets can fetch rental premiums ranging from 15–30%, with some prime locations commanding as much as 50% more, according to JLL. For developers and landlords, this presents a compelling business case to modernize aging properties instead of building a new one.
Retrofitting Potential Across Top Indian Cities
Among major Indian cities, Bengaluru leads the pack with 155.9 million sq ft of upgradable stock, representing a ₹14,410 crore opportunity to builders/developers. Key areas in Bengaluru such as ORR Southeast and Whitefield are ripe for transformation. Following the Silicon Valley of India, Delhi NCR presents a ₹7,690 crore investment opportunity with 88.2 million sq ft of retrofitting potential.
Micro-markets like NH-8 in Gurugram, Noida-Greater Noida Expressway, and Central Noida are already witnessing strong occupier activity. These are the prime zones where upgraded office buildings could fetch 17–35% higher rents. After the capital city, Mumbai presents ₹7,240 crore retrofitting potential, where submarkets such as Navi Mumbai and BKC suburbs could see rental spikes of up to 20-50% post-retrofit.
Hyderabad isn’t far behind with a ₹7,010 crore scope, especially in tech-driven districts like Hitec City and Gachibowli. Even Pune (with 3690 crore potential) and Chennai (with 4390 crore potential), while smaller in volume, show significant rental upside—particularly in areas like SBD West and OMR.
The Road Ahead
The speed and efficiency with which developers can modify the current stock will determine the next stage of office real estate expansion in India. Given that only four cities—Bengaluru, Mumbai, Delhi NCR, and Hyderabad—have 75% of occupier activity, focused investments in these areas might yield huge returns.
This serves as a reminder to landlords to future-proof their assets. It’s a fantastic opportunity for investors to get into a new market niche with distinct demand signals. Additionally, it’s an opportunity for tenants to move to more modern offices that are sustainable, imaginative, and efficient.
In conclusion, there is no denying that old office spaces in India are not just aging properties. In fact, these are the hidden goldmines that are waiting for the transformation. The retrofitting wave is coming, and those who ride it early will shape the future of India’s office market.
