Net office leasing in top 6 cities likely to sustain at record levels: ICRA

Rating agency ICRA on Thursday said net leasing of office space in the top six cities rose 14 per cent to 65 million sq ft last fiscal and the demand is likely to sustain during 2025-26.

In a statement on Thursday, ICRA said it expects the net absorption or leasing of office space in 2025-26 across the top six cities (Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai Metropolitan Region (MMR) and Pune) to sustain at all-time high levels witnessed in the preceding year.

The demand is driven by Global Capability Centres (GCCs), Banking, Financial Services and Insurance (BFSI) institutions, flex-space operators, and domestic Information Technology-Business Process Outsourcing (IT-BPM) firms.

Quoting data of PropEquity, ICRA said that the net absorption stood at a record 65 million square feet in 2024-25 (14 per cent YoY growth) across India's top six cities.

In the April-June quarter of this fiscal, 17 million sq ft of office spaces have been absorbed.