ICRA: Office Vacancy Rates to Hit Historic Lows by FY27
NEW DELHI: According to ICRA, a rating agency, vacancy rates in India’s commercial office market are set to drop to multi-year lows by FY2027 due to leasing demand significantly surpassing new supply for the third consecutive year. Net absorption across the six major office markets—Bengaluru, Chennai, Delhi NCR, Hyderabad, Mumbai Metropolitan Region (MMR), and Pune—is expected to reach an unprecedented 69–70 million sq ft in FY2026. The strong leasing momentum should continue in FY2027, with net absorption projected at over 65 million sq ft. With demand consistently outpacing supply, vacancy rates are forecast to decline to between 12.5% and 13%…