Office Space Surge: Demand from Global Enterprises Drives Growth

ICRA projects a marginal rise in net absorption of office space, reaching 69-70 million square feet this fiscal year. The growth is driven by increased demand from Global Capability Centers, flexible space operators, and the BFSI sector across six major cities, reducing vacancy levels significantly.

Rating agency ICRA forecasts a modest increase in net absorption of office spaces to 69-70 million square feet by the end of this fiscal year, spurred by heightened demand from domestic and international enterprises.

This net absorption, defined as the area occupied minus vacant space during a specific timeframe, is expected to drive vacancy levels down to 12.5-13 percent.

According to data from PropEquity and ICRA Research, the top six cities, including Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai, and Pune, are projected to witness unprecedented absorption figures by 2025-26.

(With inputs from agencies.)