Archive · 5 Sep 2025
Commercial Space Demand in India Grew 11% from 2020-25
Imagine businesses needing more space for their offices.
In India, the amount of space they're using grew by 11% each year from 2020 to 2025!
This is because India is a good place for companies to set up shop, offering lower costs and skilled workers.
Specifically, Bengaluru is a very affordable place compared to some cities in the U.S. In fact, it's much cheaper!
Indian cities are also seeing a lot of new office space being used compared to other big cities worldwide.
Even though office space in London is very expensive, Mumbai and Bengaluru have some of the most competitive prices in the world.
Demand for commercial space in top 8 Indian cities grew at an 11% CAGR from 2020-25.
Commercial space expanded from 39.3 million sq ft to 66.4 million sq ft during the same period.
Bengaluru offers cost-effective office spaces compared to Tier-II US cities.
Mumbai and Bengaluru have competitive office rentals compared to global cities.
Bengaluru recorded the highest net absorption of office space from 2016 to Q3CY24
- Who
- Businesses and the Indian real estate market.
- What
- Commercial space demand has increased significantly in top Indian cities.
- When
- From 2020-2025 and as of Q3CY24.
- Where
- Top 8 Indian cities, with a focus on Bengaluru and Mumbai.
- Why
- Due to cost-effectiveness, scalability, affordability, and a skilled workforce.
- CAGR (2020-25)
- 11%
- Commercial Space Growth (2020-25)
- From 39.3 mn sq. ft to 66.4 mn sq. ft
- Bengaluru Cost Comparison (vs. Tier-II US Cities)
- 81% lower
- Bengaluru Net Absorption (CY16-Q3CY24)
- 75.2 mn sq ft
- Mumbai and Bengaluru Office Rentals
- Most competitive globally as of Q3CY24
- London Office Rental
- $207 per sq ft per year
- Bengaluru Office Rental
- $27 per sq ft per year