Bengaluru is spearheading India’s office retrofitting movement, with over 130 million sq ft identified for upgrades. A CBRE report highlights the potential for rental growth, investor appeal, and ESG compliance. As workplace demands evolve, retrofitting offers a strategic path to modern, efficient, and future-ready commercial real estate across top Indian cities.
Bengaluru’s Ageing Office Stock Gets a Second Life
Bengaluru’s commercial real estate market is entering a transformative phase, with nearly 130–140 million sq ft of existing office spaces poised for retrofitting. A recent report by CBRE South Asia Pvt Ltd, From Existing to Exceptional: A Strategic Approach to Retrofitting Indian Office Spaces, reveals that about 60% of the city’s total 230 million sq ft office inventory is ready for an upgrade, ushering in a significant opportunity for both developers and investors.
Key micro-markets such as Outer Ring Road, Whitefield, and the Extended Business District are flagged as prime zones for redevelopment. These locations offer the highest retrofitting potential and command significant rental premiums post-modernisation, with increases ranging from 20% to even 40% in high-demand areas.
A Strategic Shift Across India’s Top Cities
The retrofitting wave isn’t limited to Bengaluru. Nationwide, nearly 50% of office inventory across India’s top seven cities—roughly 434 million sq ft—is over a decade old and suitable for targeted upgrades. Delhi-NCR and Bengaluru hold 45% of this ageing stock, followed by Mumbai and Chennai. According to the report, this transformation represents an investment potential of INR 95–162 billion in Bengaluru alone.
“This is no longer about cosmetic upgrades,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE. “Retrofitting is now a sophisticated, data-backed approach to transforming real estate assets to meet long-term sustainability and financial goals.”
Why Retrofitting Makes Business Sense
Modernising older buildings is more than a design refresh—it’s a strategic move with long-term payoffs. Upgraded properties offer better energy efficiency, stronger ESG compliance, and healthier indoor environments. This translates into reduced operating costs, improved amenities, and more attractive workspaces for tenants.
For landlords, the benefits include higher leasing velocity, enhanced tenant retention, and stronger asset valuation. These factors also make retrofitted spaces more appealing to institutional investors and REITs, improving overall liquidity in the market.
Meeting Future Workplace Demands
As work culture continues to evolve, so do expectations from office spaces. Today’s occupiers seek tech-enabled infrastructure, wellness-driven design, and flexible layouts. Intelligent systems, modular interiors, and amenities like gyms and daycare centres are standard in future-ready workspaces.
Gurjot Bhatia, Managing Director – Asia, PJM Advisory, Turner & Townsend, underscored the urgency, stating, “India’s office sector is at a critical juncture. With 434 million sq ft of space ready for transformation, the focus must be on creating future-ready workplaces that cater to modern occupier needs and ESG-focused investment.”
A Future Built on Transformation
As Bengaluru sets the pace, India’s office market rapidly adapts to meet global workplace design and sustainability standards. The retrofitting trend is not just breathing new life into old buildings but redefining how commercial real estate delivers value. With data-driven upgrades and a focus on wellness and efficiency, the Indian office sector is ready to leap to long-term resilience and competitiveness.
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