Mumbai, Bengaluru and Gurugram Lead India’s Highest Office Facilities Management Costs: Knight Frank India.

Small office occupiers incur the highest per sq ft operational costs

 Large office campuses benefit from significant scale efficiencies and integrated infrastructure advantages

 Mumbai, 16 May 2026: Knight Frank India in its latest facilities management (FM) cost assessment report across India’s leading office markets highlights significant variation in operational costs across office size categories, operating formats and city clusters. The report reveals that smaller office occupiers continue to incur the highest per sq ft FM costs, while larger office campuses benefit substantially from economies of scale, centralised operations and integrated workplace infrastructure.

The assessment evaluates facilities management costs across key office markets including Mumbai, Bengaluru, Gurugram, Chennai, Hyderabad, Ahmedabad, Pune and Kolkata, categorising occupiers into three broad office segments — small offices (10,000–50,000 sq ft), mid-sized offices (50,000–100,000 sq ft) and large office campuses (100,000–500,000 sq ft).

The report further cited that the operating formats also play a significant role in determining workplace management costs, with 24×7 operations consistently commanding a premium over conventional 12-hour, 5-day operating models due to higher manpower deployment, engineering support and round-the-clock security requirements.

Small office occupiers continue to face the highest facilities management costs across all major office markets due to limited scale efficiencies and higher manpower intensity per sq ft These office formats typically include startup hubs, boutique corporate offices, flex space occupiers and regional business units.

Within the 10,000–30,000 sq ft category, offices in Mumbai, Bengaluru and Gurugram recorded FM costs of INR 25.52 per sq ft for 12-hour operations, rising to INR 27.52 per sq ft for 24×7 operations. Similarly, offices in the 30,000–50,000 sq ft category recorded the highest operational costs across all office segments at INR 27.65 per sq ft for 12-hour operations and INR 29.65 per sq ft for 24×7 operations.

The report cited that Mumbai, Bengaluru and Gurugram are the highest-cost office markets across small office categories, driven by premium Grade A office ecosystems, higher workforce costs and greater demand for integrated workplace management services. In contrast, Pune and Kolkata emerged as the most cost-efficient markets for small office occupiers, with FM costs ranging between INR 21.13–24.55 per sq ft across operational formats.

Security costs for small offices remained comparatively elevated across major gateway cities, averaging between INR 3.40–3.65 per sq ft, reflecting higher guard deployment ratios, visitor management requirements and compliance-led workplace protocols.

Facilities Management Cost Benchmark Across Office Categories

Mid-sized office occupiers between 50,000–100,000 sq ft demonstrated relatively moderate FM costs as businesses benefited from improved operational efficiencies, centralised engineering systems and optimised vendor deployment. This category largely comprises established corporates, BFSI firms, technology companies and shared service centres.

In Mumbai, Bengaluru and Gurugram, FM costs for mid-sized offices stood at INR 24.80 per sq ft for 12-hour operations, increasing to INR 26.80 per sq ft for 24×7 operations. Meanwhile, Chennai, Hyderabad and Ahmedabad emerged as competitively priced office markets with FM costs of INR 22.82 per sq ft for standard operations and INR 24.66 per sq ft for round-the-clock operations.

Among all city clusters, Pune and Kolkata continued to remain the most economical markets in the mid-sized office category, recording costs between INR 20.53–22.19 per sq ft Security-related expenses for this segment ranged between INR 3.20–3.45 per sq ft, supported by increasing adoption of technology-enabled surveillance systems and better manpower efficiencies.

Large office spaces between 100,000–500,000 sq ft benefit most significantly from economies of scale, integrated building infrastructure and centralised command systems, resulting in the lowest per sq ft facilities management costs across all office categories. These campuses largely comprise multinational occupiers, GCCs, IT/ITeS firms and integrated business parks.

Within the 100,000–300,000 sq ft category, offices in Mumbai, Bengaluru and Gurugram recorded FM costs of INR 16.75 per sq ft for 12-hour operations and INR 18.75 per sq ft for 24×7 operations. Costs declined further for spaces between 300,000–500,000 sq ft, where FM expenses reduced to INR 13.65 per sq ft for standard operations and INR 15.65 per sq ft for 24×7 operations, underlining the scale advantages achieved by larger occupiers.

While Mumbai, Bengaluru and Gurugram continued to command the highest operational costs across large office categories due to premium workforce and compliance costs, Pune and Kolkata emerged as the most affordable markets for large office as well, with costs ranging between INR 11.30–15.53 per sq ft across operating formats.

Security costs for large office spaces remained relatively stable at INR 3.00–3.25 per sq ft, aided by integrated surveillance systems, access automation and centralised security management infrastructure.

Source: Knight Frank Research-

 Pawan Koyal, Executive Director and Head of Facility and Asset Management – Knight Frank India said “Facilities management has evolved into a strategic business function as occupiers increasingly prioritise operational continuity, workplace experience, sustainability and employee wellbeing. Our assessment highlights the significant impact of scale efficiencies on workplace operating costs, with larger office campuses benefiting from integrated infrastructure and optimised workforce deployment, while smaller occupiers continue to face comparatively higher per sq ft costs. The analysis also reflects the premium associated with gateway office markets such as Mumbai, Bengaluru and Gurugram, where higher workforce costs and demand for sophisticated workplace management solutions continue to drive operational expenditure.”

 While 24×7 operations consistently command a premium across all office categories, the operational cost differential narrows for larger office campuses due to centralised systems, automation and manpower optimisation.

Knight Frank India believes that increasing adoption of smart building technologies, ESG-led workplace practices and employee-centric office environments will continue to accelerate demand for integrated facilities management solutions across India’s commercial office sector.