According to a JLL report released on Friday, across seven top Indian cities, there is a business opportunity worth Rs 450 billion in upgrading and modernising existing office buildings. Approximately 62 per cent of top-quality office spaces in these cities are outdated in some way and need upgrades — over 530.8 million square feet of space.

The outdated quality of these spaces is due to the fact that many of them were built in the first decade of the millennium. Additionally, even upgrades before 2020 are considered to be outdated since technology is advancing at a rapid pace and tenants have more dynamic needs and expectations of their offices.

Of the seven cities — Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune — Bengaluru offers the largest potential, having 155.9 million square feet of office space in need of repair. Although the cost of doing so is estimated to be Rs 144.1 billion. Delhi NCR, Mumbai, and Hyderabad follow Bengaluru as key markets; together they represent 75 per cent of occupier activity in the country and thus need development to keep offices operational. If these properties were to be retrofitted, the owners can expect rental premiums of 15-30 per cent, with some prime locations seeing increases of up to 50 per cent.