Chennai office stock at 92 mn sq ft, as India crosses 1 billion sq ft mark, says report
Chennai has also seen a large share of high-quality office infrastructure, with 64 per cent per cent of its inventory classified as Grade A, compared to the pan-India average of 53 per cent per cent
Chennai’s total office stock has reached 92 million square feet as of H1 2025, contributing 10 per cent per cent to the overall office space market in India, according to real estate consultancy firm Knight Frank’s latest report. The city’s office space market has grown at a CAGR of 7.6 per cent since 2005, as compared to the national CAGR of 8.6 per cent.
Chennai has also seen a large share of high-quality office infrastructure, with 64 per cent per cent of its inventory classified as Grade A, compared to the pan-India average of 53 per cent per cent.
According to the report, this high-quality orientation stems from the city’s well-planned growth corridors and disciplined developer ecosystem. Grade B makes up 33 per cent, and Grade C accounts for 3 per cent, indicating relatively low obsolescence.
“Chennai’s commercial real estate market has quietly but steadily evolved into a high-performance, quality-driven ecosystem. With nearly two-thirds of the office stock already Grade A, the city is well-aligned with occupier preferences in a post-pandemic, hybrid world,” said Joseph Thilak, National Director – Occupier Strategy and Solutions (Hyderabad & Chennai), Knight Frank India.
High Demand Nationwide
Meanwhile, India’s office stock has hit the 1 billion sq ft milestone and is currently valued at $187 billion, making it the fourth largest office space market both in terms of volume and value.
Bengaluru, NCR, and the Mumbai Metropolitan Region together account for nearly 75 per cent of the market, while Pune and Hyderabad have shown the highest CAGR, with 8.9 per cent and 9.2 per cent, respectively(measured over 20 years).
Secondary Business Districts (SBDs) account for 45 per cent of the stock, while Central Business Districts (CBDs) account for 19 per cent. Peripheral Business Districts (PBDs) make up the remaining 36 per cent.
Published on August 7, 2025