Archive · 13 Jan 2026
Developers Target Ageing CBD Offices for Redevelopment
In India, many old office buildings in busy city centers are not up to date.
These buildings are old and don't have the latest technology or good spaces for workers.
Developers are now seeing this as a big chance to fix up these buildings.
By making them better, they can meet the needs of companies that want modern, eco-friendly offices.
This also helps them make more money because these improved offices can charge higher rents.
Cities like Mumbai, Delhi, and Hyderabad are seeing a lot of this activity.
Experts say this is not just a good idea but necessary to keep up with the demand for high-quality office spaces.
Developers are focusing on redeveloping ageing office buildings in central business districts (CBDs) due to strong demand for Grade A offices.
A significant portion of India's office stock is Grade B or C, built 2-3 decades ago and lacking modern amenities.
Redevelopment offers better capital efficiency and faster market readiness in land-constrained locations.
Higher floor space index (FSI) in Mumbai allows developers to increase built-up area significantly without acquiring additional land.
Institutional owners and REITs are also adopting redevelopment as a portfolio strategy to reposition older assets.
- Who
- Developers and investors in India's commercial real estate market
- What
- Redevelopment of ageing office buildings in central business districts (CBDs)
- When
- Current trend, with significant activity expected in 2025
- Where
- Top cities in India, including Mumbai, Delhi, and Hyderabad
- Why
- To meet demand for Grade A offices with better sustainability, technology, and employee wellness features
- Total Office Market Value (H1 2025)
- Rs 16.07 trillion
- Grade B Office Stock in CBDs
- 99 million sq ft, Rs 1.34 trillion
- Grade C Office Stock in CBDs
- 25 million sq ft, Rs 34,100 crore
- Total Grade B and C Office Stock
- 298 million sq ft, Rs 3.42 trillion
- Prime Office Rentals
- Rs 569 to Rs 1,090 per sq ft per month