ICRA: Office Absorption to Hit Record High

New Delhi, Nov 26 (PTI) Rating agency ICRA has projected net absorption of office spaces to rise marginally to record 69-70 million sq ft this fiscal across six major cities on better demand from domestic and overseas enterprises.

It defined net absorption as sq ft area physically occupied minus area physically vacant during a specific period.

The agency also estimated that the vacancy level will drop to 12.5-13 per cent by the end of this fiscal.

In a statement on Wednesday, ICRA said that it expects the net absorption of office space across the top six cities -- Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai Metropolitan Region (MMR) and Pune -- to reach all-time highs of 69-70 million square feet in 2025-26.

The net absorption stood at 66 million square feet in 2024-25.

Already, the net absorption stood at 36 million sq ft during the first half of FY26.

The rating agency attributed the rise in net absorption of office space to higher demand from Global Capability Centers (GCCs), flexible space operators and the BFSI (Banking, Financial Services, and Insurance) sector.

The source of the data is PropEquity and ICRA Research.