While robust and globally competitive, India’s commercial office market stands at a critical crossroads. A new JLL report reveals that nearly two-thirds—about 62%—of the country’s Grade A office stock across its top seven cities needs retrofitting to meet modern standards. That’s approximately 530.8 million square feet, unlocking a massive Rs 45,000 crore (USD 5.3 billion) investment opportunity.

The report, Futureproofing 4.0: Opportunity through Obsolescence, highlights the growing demand for sustainable, tech-integrated, and user-centric office spaces. While India’s office inventory continues to attract occupiers, much of it, especially assets built before 2020, is now outdated regarding design, environmental compliance, and occupier experience.

“This is a pivotal moment,” said Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL. “Even assets built before 2020 need upgrades to stay relevant in a market now driven by the need for experiential, sustainable, and tech-driven offices.”

Four key cities—Bengaluru, Delhi NCR, Mumbai, and Hyderabad—account for 81% of the expected capital expenditure, reflecting their dominance in the occupier market. These cities also contribute roughly 75% of all office activity in India, making them central to this transformation.

Retrofitting can range from light aesthetic improvements to deep structural and environmental upgrades. The payoff is substantial—property owners could see rental premiums of 15-30%, and in prime areas like Mumbai’s BKC and Western Suburbs, that number could reach 50%. Such upgrades also lead to improved occupancy and longer lease terms, further boosting asset value.

Ashish Agrawal, Co-Founder of Enzyme Office Spaces, sees a unique opportunity for coworking operators: “This presents great opportunities for coworking spaces, especially in cities like Bengaluru and Mumbai. Businesses now require flexible and modern sustainable workspaces. Retrofitting older buildings allows for enhanced locations that meet the demand for experience-driven quality offices.”

The shift isn’t just cosmetic. It represents a more significant change in how offices are perceived—moving from basic commodity spaces to high-quality environments that attract and retain talent. As hybrid and flexible work models become the norm, adaptable workspaces in upgraded buildings will play a key role in shaping India’s future work culture.

Aman Gupta, Director at RPS Group, emphasized the long-term impact: “Not every building may require deep intervention, but moderate upgrades can significantly enhance asset value. With occupants changing their priorities to require quality over quantity, investing in future office spaces will determine the next improvement in the region.”

As India positions itself as a global office hub, modernizing its existing stock is no longer optional—it’s essential. The race to stay future-ready has begun, and stakeholders across the real estate, coworking, and investment ecosystem are watching closely.