Business EconomyPosted at: May 12 2025 5:43PM


Bengaluru office market offers Rs 162 bn retrofit value: CBRE

Bengaluru, May 12 (UNI) CBRE South Asia Pvt Ltd, India's leading real estate consulting firm, on Monday released a report titled 'From Existing to Exceptional: A Strategic Approach to Retrofitting Indian Office Spaces', highlighting Bengaluru's massive potential for office space upgrades.
According to the report, out of the city’s total 230 million sq. ft. of office stock, nearly 130–140 million sq. ft. is ripe for strategic upgradation, offering a key opportunity to enhance asset value and drive rental yields. This retrofitting potential is largely concentrated in Outer Ring Road, Whitefield, and the Extended Business District—areas that are poised to yield the most impact from modernisation efforts.
The report estimates that Bengaluru alone presents an investment opportunity valued between Rs 95–162 billion, as developers and investors seek to meet growing demand for high-performance, modern workspaces. Upgraded properties in high-potential micro-markets could command meaningful rental premiums, with returns varying by location.
Pan-India, CBRE noted that nearly 50 per cent of the office inventory across the top seven Indian cities, covering about 882 million sq ft, comprises properties over a decade old. Of this, around 200 million sq ft, or 45 per cent of the ageing stock, is located in Bengaluru and Delhi-NCR. Mumbai and Chennai together account for another 32 per cent, underlining significant retrofitting potential in these gateway markets.
The report identifies approximately 434 million sq ft of office stock nationwide as eligible for upgradation, with an estimated investment potential ranging between Rs 304–520 billion. Enhanced sustainability, wellness features, and tech-readiness in retrofitted spaces could deliver rental premiums of up to 20 per cent—and in some micro-markets, potentially exceeding 30–40 per cent.
Other key cities also present notable opportunities. Chennai has about 52–57 million sq. ft. of upgradable stock within its 89 million sq. ft. office inventory, especially across OMR Zones 1 and 2, and Mount Poonamallee High Road. These assets could attract investments between INR 39–66 billion. Gurugram, with around 45–50 million sq. ft. of upgrade-worthy office space, primarily in DLF Cybercity, Golf Course Road, and NH8, offers investment potential of INR 33–56 billion, with rental gains estimated up to 30 per cent.
CBRE emphasised that with new supply lagging behind demand, targeted retrofitting provides a timely and strategic lever for investors and landlords to unlock value, enhance returns, and reinforce India’s commercial real estate market.
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