Tag: icra

CommercialLatest Stories

Hyderabad Office Market to Gain 18-19 Million Sq Ft by FY27: ICRA

NEW DELHI: The office market in Hyderabad is projected to welcome 18-19 million square feet of new Grade-A supply between Q4 FY26 and FY27, according to the rating agency, ICRA. Occupancy rates are expected to remain stable at approximately 82.5-83% by March 2027, driven by consistent demand from IT-BPM and BFSI sectors. Notably, around 23% of the forthcoming supply is already pre-leased. Leasing activity in Hyderabad has demonstrated resilience during the first nine months of FY2026. Within this timeframe, the city added 8.4 million sq ft of new Grade-A office space, with net absorption slightly outpacing supply at 8.5 million…

Latest StoriesResidential

Residential Sales Growth to Hold Steady at 10-12%: ICRA

NEW DELHI: Residential real estate developers are projected to achieve stable sales growth of 10-12% in the current and upcoming financial year, as housing demand normalizes after a three-year post-pandemic recovery, according to an ICRA analysis. This growth is anticipated to stem from a combination of 5-7% volume increase and 4-6% escalation in average prices, supported by decreasing interest rates, improved affordability, and sustained demand for premium and luxury homes. ICRA’s findings are based on a sample of 75 developers, representing about 35% of residential sales nationwide. Over the three financial years leading up to FY2025, residential sales exhibited a…

CommercialLatest Stories

Delhi-NCR Office Occupancy Set to Exceed 80% by FY27: ICRA

NEW DELHI: The grade-A office market in Delhi NCR is witnessing robust growth, with occupancy levels expected to reach 80.5-81.0% by March 2027, per ICRA, a rating agency. Since March 2023, occupancy has surged significantly, climbing 600 basis points to 78.6% by September 2025. This increase is largely attributed to strong net absorption outpacing new supply over several years. In FY2025, net absorption totaled 11.4 million sq ft, notably exceeding the 7.4 million sq ft of new supply. This trend has continued into the first half of FY2026, with net absorption reaching eight million sq ft compared to 7.3 million…

CommercialLatest Stories

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%…

CommercialLatest Stories

Starlink Leases Office Space in New Delhi with CorporatEdge

Elon Musk’s Starlink has secured its first office in northern India by partnering with premium flexible workspace provider CorporatEdge, according to two sources familiar with the matter. The new 50-seater office is located at the World Trade Center in Nauroji Nagar, Delhi—a location also chosen by OpenAI for its first office in India. Earlier this month, Starlink displayed comprehensive residential pricing on its local website, indicating an upcoming launch in India, although they later clarified that this was due to a glitch. As firms like OpenAI and Starlink establish their presence in India, a centralized location in Delhi allows them…

IndustryLatest Stories

Umiya Buildcon Buys 20,000 Sq Ft in Bengaluru CBD

Representative AI image NEW DELHI: Umiya Buildcon has acquired a 20,000 sq ft plot in Bengaluru’s central business district (CBD), located off Cunningham Cross Road, for a residential development. The site offers a built-up potential of approximately 55,600 sq ft, and, upon completion, the project is anticipated to contribute nearly ₹200 crore to Umiya’s financial standing. The acquisition coincides with a period of projected steady growth in Bengaluru’s residential market. A recent analysis by ICRA indicates that the city’s housing market is set to see a 3–5% increase in area sold in FY2026, primarily driven by sustained demand in mid-income…

CommercialLatest Stories

OpenAI Leases 50-Seater Office with CorporatEdge in Delhi

US-based OpenAI has selected Delhi for its inaugural office in India, leasing a 50-seater space from premium flex workspace provider CorporatEdge, according to two sources familiar with the matter. This August, OpenAI CEO Sam Altman announced plans to establish an office in India. The sources indicated that the company specifically sought a location in Delhi, ruling out the business hubs of Gurugram and Noida. “This deal underscores the significance of AI firms as substantial players in commercial real estate moving forward,” one source remarked. “These companies tend to favor managed office spaces over traditional office setups.” OpenAI did not respond…

CommercialLatest Stories

GCCs to Lease 50-55 Million Sq Ft in FY26-FY27: ICRA

Representative image NEW DELHI: ICRA, a leading rating agency, anticipates that global capability centres (GCCs) will lease an additional 50-55 million square feet of Grade A office space during FY26-FY27, which could account for 38-40% of overall office demand in the top six markets: Bengaluru, Chennai, National Capital Region (NCR), Hyderabad, Mumbai Metropolitan Region (MMR), and Pune. Furthermore, ICRA predicts that the number of GCCs will increase from about 1,700 currently to over 2,500 by 2030, generating upwards of $100 billion in revenue and expanding workforce capacity by 1.5-2.0 times. The rapid growth of GCCs has become a significant growth…

Housing FinanceLatest Stories

Banks Boost Loans to Wealthy for Mortgage Growth

MUMBAI: To spark mortgage growth, banks are focusing on the luxury housing market, designing tailored loan products to cater to increasing demand for high-end properties in major cities and their affluent suburbs. “The premium segment continues to thrive, and that is where the growth lies,” stated Manu Singh, head of housing finance at Kotak Mahindra Bank. “Buyers are seeking larger, luxury homes, often looking for second or third residences in Alibaug or Gurgaon. We view home loans as relationship products; our goal is to be a trusted banking partner for the affluent throughout this journey.” In Mumbai and Delhi, luxury…

CommercialLatest Stories

Fit-Outs: The New Revenue Engine for Flexible Offices

Office fit-outs are increasingly becoming a significant revenue source for operators of flexible workspaces. In the first half of 2025, India saw a steady 3% rise in fit-out costs across its top eight cities. According to Cushman & Wakefield, India remains one of the most cost-effective locations for office fit-outs in the Asia-Pacific region, making it an appealing market for businesses looking to expand their workspaces. With a gross leasing of 42 million square feet during this timeframe, the sector is poised to exceed 90 million sqft of leasing activity annually for the first time. “The increasing need for customized…