Office Space Boom: Net Absorption Surges Across Major Indian Cities

The net absorption of office space in major Indian cities is poised to grow by 10-11% this fiscal, according to ICRA. Despite the substantial additions to office supply, vacancy rates are projected to stabilize due to strong leasing activity spurred by global and domestic demand.

The net absorption of office space across six major Indian cities is expected to see a significant rise of 10-11% this fiscal year, according to a report by rating agency ICRA.

ICRA's statement highlighted a projected increase to 590-600 lakh square feet in net office leasing for 2024-25, with an additional growth of 3-4% anticipated in the following fiscal year, despite a substantial new supply of 1,250-1,300 lakh square feet.

Industry experts attribute the steady demand and stable vacancy rates to the expansion of Global Capability Centres and increasing physical occupancy, signaling robust growth within the office sector.

(With inputs from agencies.)