India’s Office Spaces Face Aging Challenge, Retrofitting Becomes Key

Image Source : The Financial Express

Nearly half of India’s office stock in major cities is more than a decade old, highlighting the growing need for modernization and strategic upgrades. A recent study by CBRE reveals that aging office spaces are at risk of declining occupancy, stagnant rents, and functional obsolescence as businesses increasingly prioritize high-performance, future-ready workplaces.

Market Insights and Upgrade Potential:
- Around 27 percent of India’s total office stock is over 15 years old, while 23 percent falls within the 10-to-15-year range.
- Bengaluru and Delhi-NCR account for nearly 45 percent of the country’s decade-old office spaces, with Mumbai and Chennai contributing another 32 percent.
- Office buildings covering approximately 434 million square feet are prime candidates for retrofitting, representing an investment potential of 304 to 520 billion rupees.
- Upgraded office spaces could yield rental premiums of up to 20 percent, with some properties potentially exceeding 30 to 40 percent depending on market conditions.
- Developers and landlords are increasingly focusing on sustainability, wellness, and tech-readiness to align aging assets with evolving workplace expectations.

Sources:
Economic Times, RealtyNXT, CBRE Report, MSN India.