OFFICE VACANCY RATES
Office market stabilising; vacancies to decline marginally, rents to rise: Nuvama
Office space vacancy in India is set to decrease slightly. Rental growth will improve as demand and supply trends balance. New office space additions are planned until 2028. Leasing activity has shown a strong recovery. Global Capability Centres are a key driver of demand.
India’s office vacancy drops to 13.85% in Q4FY26, lowest since pandemic amid strong leasing demand
Office vacancy in India's top cities has reached its lowest point since the pandemic. This is due to companies returning to offices and Global Capability Centres continuing to lease space. Vacancy levels have declined significantly, reflecting strong demand for quality office spaces. Rental growth is also accelerating across major markets.
India's office story stays resilient as demand surges despite global volatility
India's office market is showing strong resilience in early 2026. Demand is consistently exceeding supply across major cities. Technology and BFSI sectors are driving leasing activity. Global Capability Centres are expanding. Flex spaces are also seeing significant growth. This indicates a robust and growing office sector in India.
Embassy REIT bets on growth amid debt, leasing strength: Amit Shetty
Embassy Office Parks REIT raised ₹9,800 crore debt at low rates, targeting growth and refinancing. Strong leasing, embedded redevelopment, and GCC demand support a 50% NOI upside, while disciplined acquisitions and capital recycling aim to sustain long-term returns despite concentration risks.
India commands 68% of APAC office leasing in 2025, cementing its position as region’s powerhouse
Office property market: New office supply across the 11 markets rose 19% year-on-year to 9.6 million square metres (103.3 million sq ft). Eight markets recorded supply growth, with India, Mainland China and Singapore accounting for 82% of the new supply.
EPFO to engage retired officers to fill vacancies
The Employees Provident Fund Organisation is set to hire retired officers and government employees. This move aims to fill over 4,000 vacancies across various departments. Initially, the investment division will be strengthened. Retired officials from institutions like SBI, RBI, and LIC will be engaged. This initiative will enhance the organisation's capacity to manage its growing subscriber base and corpus.
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Union Budget 2026: India's ‘Office of the World’ dreams await power measures
Union Budget 2026: India's office market is booming, setting new records in absorption despite global challenges. Global Capability Centres and flexible workspaces are leading this surge. As the Union Budget 2026 approaches, industry leaders seek policy continuity, infrastructure upgrades, and regulatory clarity to further solidify India's position as a global business hub. This growth is expected to continue.
China office developers offer sweeteners, lower rents to lure tenants
Office spaces in China's top cities face high vacancy. Shenzhen and Shanghai see significant empty offices. Developers offer incentives like cheaper electricity to attract tenants. Corporate cost-cutting and fewer multinational companies contribute to the problem. Experts anticipate further market correction. Some local authorities are trying to support the market.
Bengaluru tops India's office leasing charts as vacancy hits decade low: ICRA
Bengaluru is currently dominating India's commercial office sector. Leasing activity is at a record high. Vacancy levels are the lowest in ten years. Other cities like Chennai, Delhi-NCR, and Hyderabad are also expected to see stable or improving vacancy rates. Demand is driven by GCCs, BFSI, flex-space operators, and IT-BPM firms. New office supply is projected to increase.
India's office leasing record pace poised to continue in FY26
India's commercial office market is experiencing a boom, with record leasing in FY25 driven by GCCs, BFSI, and IT-BPM sectors. Net absorption surged 14% to 65 million sq ft, outpacing supply. This momentum is expected to continue in FY26, with vacancy rates declining and strong financial metrics improving the credit profile of office players.
Net annual office leasing in India to hit all-time high of 50 million square feet in FY27
Crisil projects a robust 7-9% CAGR for Grade A office space net leasing in India, exceeding 50 million sq ft by fiscal 2027, fueled by reduced remote work and GCC demand. Vacancy is expected to decline to 15.5-16.0% by fiscal 2027.
Rising business confidence, commitment drives front office leasing growth
India's prime business districts, particularly in Mumbai, Bengaluru, and Hyderabad, are experiencing a surge in demand for premium office spaces, fueled by growing corporate confidence. Leasing activity is robust, with rents steadily increasing in core central business districts. This trend signifies India's evolution into a headquarters economy, attracting both domestic and multinational corporations seeking strategic locations.
Vacancy at office space dips further on the back of strong demand
India's office space vacancy declined for the seventh consecutive quarter to 15.7% in Q1 2025, driven by strong leasing activity and limited new supply. Gross leasing volume rose 5% year-on-year, with IT-BPM and BFSI sectors leading demand. GCCs' share grew significantly, particularly in Bengaluru, Pune and Hyderabad.
NCR’s office market records a 61% year-on-year increase in net absorption
The NCR office market saw a 61% year-on-year rise in net absorption in 2024, driven by demand from GCCs and the technology sector. Co-working spaces contributed 34% of transactions, while the market experienced rental growth and a slight drop in vacancy rates.
India office realty market surges to record high net absorption in 2024
India's office market reached new heights in 2024, achieving record net absorption and leasing volumes driven by tech sector recovery, BFSI, and manufacturing/engineering demands. Major cities like Bengaluru and Mumbai significantly contributed to the growth, with GCCs and flexible office spaces showcasing strong performances.
Vacancy rate dips further as office space demand remains robust
India's office space vacancy rate has fallen to 17.1%, its lowest since 2020, due to heightened corporate demand and low new supply. High leasing rates by Global Capability Centers are driving growth, with rentals up by 4-5% amid shortages in key markets.
Steady absorption, modest supply growth in commercial realty to continue in FY25
Ind-Ra maintains neutral outlook for Indian CRE sector in FY 2024-25, with stable rating Outlook for CRE entities. Expectations include improved metrics, growth in absorption rates, and steady rental increases, driven by demand from various sectors.
30,000 vacancies filled in JK after Article 370 abrogated: Govt in RS
Nearly 30,000 vacancies were filled in Jammu and Kashmir after the abrogation of Article 370 in 2019, Union Minister of State for Home Nityanand Rai said in Rajya Sabha on Wednesday. Rai said the government of Jammu and Kashmir has carried out several governance reforms, including in the area of recruitment.
Vacancy rates at top-tier office parks expected to increase further
As per ICICI Securities, there has been a notable deceleration in significant leasing decisions since January 2023. This slowdown can be attributed to global macro headwinds, including the rise in interest rates and a slowdown in hiring by technology multinational corporations (MNCs), which account for 67% of the demand for office space in India.
Hyderabad surpasses Bengaluru with highest new office supply in FY23
The commercial office space market in the top 7 cities of India experienced a mixed performance in the fiscal year 2023, with the first half doing much better than the second. According to the latest data from ANAROCK, Hyderabad emerged as the frontrunner, surpassing Bengaluru, with the highest influx of new office supply.
Office vacancies stay stable as companies start bringing staff back
Gross absorption in the first quarter of the calendar increased almost three times year-on-year (YoY) to 13.0 million sq feet - the highest in two years, according to Colliers. This shows that the first quarter has been a watershed period for the commercial office sector, with the office sector shrugging off the relatively low demand seen over the last two years.
India to contribute 37% of the APAC office space demand: Cushman & Wakefield
Bangalore is expected to absorb the maximum amount of office space in Asia Pacific, as India is expected to contribute to 37% of the total demand in 2022, Badal Yagnik, managing director - tenant representation, Cushman & Wakefield told ET.
Vacancies in IAS at 'alarming level': Parliamentary panel
The Committee said it fails to understand as to why lack of training capacity has been cited as one of the reasons for not filling the vacancies of IAS officers.
Prime office markets' rentals soar as vacancy rates drop
Robust demand from occupiers and limited supply of grade A offices have continued to push rentals in prime Indian office space markets including Mumbai’s Bandra-Kurla Complex.
Room for growth: Builders focus on commercial realty now
Rising interest in commercial real estate was generated by falling vacancy rates and constrained supply of grade-A office spaces.
'Dubai's real estate market maintains positive performance in second quarter'
"The major news about the proposed Mall of the World reflects confidence for both the retail and hotel sectors," said Plumb.
Mumbai office space Q3 absorption up 50%, but average vacancy too rises to 20%
Mumbai office realty market witnessed the highest absorption across cities in India during July-September.
Mumbai luxury residential sales slip in June: Jones Lang LaSalle
According to a report released by Jones Lang LaSalle, country's financial capital saw a dip in residential sales, primarily in luxury segment.
No takers for 11 lakh sq ft office space in Mumbai's property market
The high vacancy in turn, has put pressure on commercial rental rates which now touch 2006 levels, say property consultants.
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