The credit profiles of office players and mall operators are expected to remain stable in FY2027, supported by healthy net operating income (NOI) growth, resilient occupancies and contracted rental escalations. Comfortable leverage and debt coverage metrics should continue to support rating stability, notwithstanding portfolio expansion and incremental debt. This operating resilience is also reflected in the rating trend in 5M FY2027, with nine upgrades against one downgrade across office and retail mall developers.

• India's office leasing outlook for FY2027 is expected to be anchored by the sustained expansion of global capability centres (GCCs), which continue to account for a significant share of incremental office demand.
  
• India's top six office markets recorded a net absorption of ~70 million square feet (msf) in FY2026, surpassing supply additions of 57.8 msf and reducing vacancy levels to 12.2% from 14.1% a year ago.
  

Exhibit : Annual trend in net absorption, supply and vacancy for top six^ Indian office markets