The net absorption has been healthy over 15 msf during the last five quarters. The vacancy rates declined to 14.0% as of March 2025 from 15.6% as of March 2024 supported by all-time high net absorption of 66 msf in FY2025, against supply of 58 msf during the last fiscal.

13.0% as of September 30, 2025. Despite global headwinds stemming from policy tightening (trade restrictions) in the US, office leasing activities in India remained buoyant in H1 FY2026. However, ICRA will closely monitor the situation, as macroeconomic and geopolitical factors evolve.

Exhibit 1: Quarterly trend in net absorption, new supply and vacancy – aggregate for top six Indian office markets

Source: Propequity, ICRA Research; Net absorption is defined as the sum of square feet that became physically occupied, minus the sum of square feet that became physically vacant during a specific period