Rs 23,380 crore needed to upgrade office buildings in top 4 cities: Report

Property consultant JLL India on Tuesday said that nearly 350 million square feet of premium office space across four major cities needs upgradation with an estimated investment of Rs 23,380 crore.

In a statement, JLL said that Bengaluru, Mumbai, Delhi-NCR, and Hyderabad hold 347 million square feet of Grade A office stock which requires upgradation and retrofits.

Bengaluru has 118.8 million square feet of Grade A stock that requires upgradation, followed by Mumbai with 85.8 million square feet, Delhi-NCR with 80 million square feet and Hyderabad with 62.8 million square feet.

The upgradation includes age, services and amenities-related upgrades as well as sustainability-led asset enhancements.

"The estimated total investment across the four cities for the upgradation of the said total stock is around Rs 23,380 crore," it said. For the capex spend calculations, all projects over 1,00,000 square feet have been considered irrespective of the age of the asset.

The top four cities account for 569 million square feet of Grade A office stock of the total 740 million square feet of office stock across top seven cities.

A substantial 319 million square feet in these four cities have no sustainability/ green certification and 43 per cent of this stock is also more than 11 years old.

"Future-proofing of buildings is about change and flexibility. Building upgradation is mainly an economic-driven concept, which ensures that the building continues to create value for investors, is well-occupied, and generates rental income in line with the best buildings through elements of experience, inclusion, and services upgrades using construction and technology interventions," said Aditya Desai, Executive Director and Head (PDS sales & Investor services), India, JLL.