{"id":3175,"date":"2025-08-07T20:10:45","date_gmt":"2025-08-07T20:10:45","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/08\/07\/office-leasing-in-india-hits-record-highs-in-fy2025-momentum-may-sustain-in-fy2026-icra-real-estate-news\/"},"modified":"2025-08-07T20:10:45","modified_gmt":"2025-08-07T20:10:45","slug":"office-leasing-in-india-hits-record-highs-in-fy2025-momentum-may-sustain-in-fy2026-icra-real-estate-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/07\/office-leasing-in-india-hits-record-highs-in-fy2025-momentum-may-sustain-in-fy2026-icra-real-estate-news\/","title":{"rendered":"Office Leasing In India Hits Record Highs In FY2025, Momentum May Sustain In FY2026: ICRA | Real Estate News"},"content":{"rendered":"


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This robust demand in future will be driven by Global Capability Centres, BFSI players, flex-space operators, and domestic IT-BPM firms, says a ICRA report.<\/h2>\n
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As of June 30, 2025, the total Grade A office stock across the top six cities stood at approximately 1,030 million square feet.<\/p>\n<\/figure>\n

India\u2019s commercial office leasing market is expected to maintain its strong momentum in FY2026, with net absorption likely to match the all-time high levels seen in FY2025, according to rating agency ICRA. This robust demand will be driven by Global Capability Centres (GCCs), Banking, Financial Services and Insurance (BFSI) players, flex-space operators, and domestic IT-BPM firms.<\/p>\n

In FY2025, net absorption across the top six Indian cities \u2014 Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai Metropolitan Region (MMR), and Pune \u2014 reached a record 65 million square feet (msf), marking a 14% year-on-year growth and outpacing new supply of 58 msf. This strength has continued into the first quarter of FY2026, which saw net absorption of 17 msf against a supply of 17.7 msf.<\/p>\n

\u201cThe slowdown in leasing from global IT firms has been compensated handsomely by the GCCs and the BFSI segments, which ICRA expects will continue to dominate leasing activity, accounting for the majority of the space uptake in FY2026,” said Abhishek Lahoti, Assistant Vice President and Sector Head, Corporate Ratings at ICRA.<\/p>\n

Vacancy Levels Expected to Decline Further<\/strong><\/p>\n

According to ICRA, overall vacancy levels across these cities are expected to decline to 13.0\u201313.5% by March 2026, from 13.9% in March 2025 and 15.5% a year earlier, reflecting the strengthening demand-supply fundamentals in the sector.<\/p>\n

As of June 30, 2025, the total Grade A office stock across the top six cities stood at approximately 1,030 msf. Bengaluru leads with a 26% share of total supply, followed by Delhi-NCR and MMR. New supply in FY2026 is expected to remain robust at 63\u201364 msf.<\/p>\n

City-wise vacancy projections indicate continued demand traction:<\/p>\n