India’s ageing office properties present a major value-creation opportunity, with strategic retrofitting capable of unlocking ?1.2–1.6 lakh crore in capital value, according to a recent industry report.

The report estimates that such upgrades could boost asset values by 25–40% across major commercial micro-markets.

To achieve this, an investment of ?30,000–40,000 crore would be required, depending on the extent of upgrade work. This includes structural strengthening, façade improvements, HVAC modernisation, sustainability upgrades, and the addition of employee-focused amenities. Well-planned retrofits can offer a 3–5 year payback period, supported by higher occupancy, better lease terms, and improved tenant retention.

The study notes that approximately 160–180 million sq ft of India’s office stock is over ten years old and may require refurbishment or complete repositioning. With workplace expectations evolving quickly — including demand for sustainability, wellness features, and smart technology — retrofitting has become a high-return strategy for property owners.

Post-retrofit, asset value enhancement may reach up to 40% in select markets, while rental appreciation could range between 15–35%, depending on location and quality of upgrades.

Energy-efficient improvements such as HVAC optimisation, LED lighting, and advanced water systems can also cut operating costs by 20–30% over time. Beyond financial benefits, retrofits help owners align with environmental and sustainability standards, secure green certifications, and strengthen the long-term performance of their assets.

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