Half of India's office spaces are fit for retrofitting and redevelopment, says CBRE report

New Delhi [India], May 12 (ANI): Nearly 50 per cent of India's office inventory in the top seven cities, including integrated technology parks and standalone properties, is over ten years old, indicating significant potential for retrofitting and value enhancement, according to a study by CBRE.

The release by CBRE further mentions that specifically, around 27 per cent of the total office stock is over 15 years old, and 23 per cent is between 10 to 15 years old, while only 28 per cent is less than 5 years old.

It also highlights the problem that a major portion of the total office stock of approximately 882 million sq. ft faces the risk of declining occupancy, stagnant rents, and functional obsolescence as occupiers increasingly prioritise modern, high-performance spaces.

The report further reveals that Bengaluru and Delhi-NCR hold nearly 45 per cent of the of India's decade-old office stock, while Mumbai and Chennai together account for another 32 per cent . These stats reaffirm the need for strategic upgrades and retrofitting to align with evolving workplace expectations and sustain asset competitiveness.

The office buildings covering approximately 434 million sq. ft. are suitable candidates for upgrades, representing an investment potential of roughly INR 304 to 520 billion.

"Retrofitting assets can meet occupier expectations around sustainability, wellness, and tech-readiness--while offering potential rental premiums of up to 20 per cent (and even potentially surpassing 30-40 per cent in some instances), depending on market conditions," the CBRE said.

The release sees "Chennai offers similar potential, with about 52-57 mn. sq. ft. of its 89 mn. sq. ft. stock identified for upgrades, particularly in OMR Zone 1, OMR Zone 2 and Mount Poonamallee High Road. The estimated assets present an investment opportunity of INR 39-66 billion, with rental premiums expected to yield up to 20 per cent."

"This robust retrofitting framework aligns long-term financial goals with crucial upgrade factors and a commitment to sustainability. By embracing retrofitting as a continuous strategy, we ensure these assets remain resilient, competitive, and highly attractive to investors in the evolving real estate landscape," said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE. (ANI)