The net absorption stood at record-high levels of 66 msf in FY2025 (15% year-over-year (YoY) growth) across India’s top six cities, surpassing the 58-msf supply. The momentum has carried into 9M FY2026, with54 msf of net absorption, surpassing the supply of 45 msf. ICRA expects this trend to continue, with net absorption remaining strong above 65 msf each in FY2026 and FY2027. 

Vacancy rates are projected to decline to all-time lows of 12.5-13.0% by March 2026 and further to 12.0-12.5% by March 2027 from 14.1% as of March 2025, reflecting strong fundamentals.

Exhibit : Annual trend in net absorption, supply and vacancy – aggregate for top six cities

Source: Propequity, ICRA Research; P - Projected