India Office Vacancy Falls Below 14% Mark

16 Apr 2026 CW Team

India’s office real estate market recently sustained strong momentum, with vacancy levels tightening to 13.85 per cent in Q1 2026, according to Cushman & Wakefield. This marks a decline of 48 basis points quarter-on-quarter and 191 basis points year-on-year, pushing vacancy below 14 per cent for the first time since the pandemic.

Bengaluru continued to record sub-8 per cent vacancy, with select micro-markets at nearly 2 per cent, while Mumbai entered single-digit vacancy at around 9 per cent, with prime districts below 3 per cent. Chennai, Pune and Kolkata also reported declining vacancy levels.

The trend was supported by reduced supply, with new completions at 8.8 million sq ft—down 43 per cent QoQ and 18 per cent YoY—due to project delays. Limited supply alongside steady leasing activity accelerated absorption across key markets.

Rental growth strengthened, with average rents crossing Rs 100 per sq ft per month for the first time. Hyderabad led with 12 per cent YoY growth, followed by Delhi NCR at 10 per cent, and Mumbai and Chennai at around 6 per cent.

Gross leasing volume reached 22 million sq ft, up 13 per cent YoY, led by Mumbai at 6.6 million sq ft. Global Capability Centres remained a key driver, accounting for nearly 40 per cent of leasing activity.

Despite a dip in net absorption to 11.51 million sq ft, demand fundamentals remain resilient, with landlords likely to retain pricing power amid constrained high-quality supply."

Infrastructure Energy

16 Apr 2026

Power Mech Enters Urban Mobility With Rs 2.96 bn Mumbai Monorail Contract

Power Mech said it has secured a contract worth Rs 2.96 billion (Rs 2.96 bn) to deliver work on the Mumbai Monorail, marking the company's formal entry into urban mobility. The award was described as a significant contract for the firm and follows its focus on infrastructure projects. Shares of the company rose on the announcement as investors reacted to the new order. The contract will expand Power Mech's engineering and construction portfolio into urban transit systems and provides the company with exposure to the fast growing urban mobility segment in metropolitan areas. The work is expecte..

Yogi Orders Expert Panel On Smart Meter Overbilling

The Uttar Pradesh chief minister ordered the formation of an expert panel to investigate widespread complaints of overbilling linked to newly installed smart meters. The panel was instructed to review meter data, examine installation practices and identify technical or procedural causes behind discrepancies in consumer bills. The state energy department was asked to prioritise the inquiry and to coordinate with distribution companies to ensure rapid access to required records and equipment. The committee was directed to conduct technical audits of meters and to establish whether faults, calibr..

Power Firms Seek Relaxation Of HERC Fuel Surcharge Rules

Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN) have approached the Haryana Electricity Regulatory Commission (HERC) seeking relaxation of rules that govern recovery of fuel and power purchase costs. The distribution companies have filed petitions proposing amendments to Regulation sixty eight of the Multi-Year Tariff (MYT) Regulations, 2024 for financial year 2025-26, and have asked the regulator to consider alternative recovery mechanisms to the current monthly arrangement. Under the existing framework, additional costs arising from fuel and power purc..