Net absorption to dip 10% in FY24 for office leasing segment

11 Sep 2023 CW Team

According to ICRA, the net absorption of office leasing across India's top six cities is projected to experience a year-on-year decline of 10% in the fiscal year 2024 (FY24). This decline, coupled with a substantial influx of new office space in FY24, is expected to lead to a slight increase in vacancy levels, rising by 60 basis points to reach 15.5% by the end of FY24. Nevertheless, office developers are anticipated to witness revenue growth ranging between 11% to 13% in FY24. This growth is likely to be supported by scheduled rent escalations and improvements in occupancy levels among well-established office players.

Projections indicate that rental rates are poised to rise by 3% to 5% year-on-year in FY24. This increase will primarily be driven by contracted escalations and lease renewals occurring at higher rates. ICRA's outlook for the commercial office sector is assessed as Stable. In FY23, the net absorption of office leasing reached approximately 57 million square feet, a level akin to FY20 figures, marking a notable recovery from the lower levels witnessed in FY21 and FY22 (22 million square feet and 33 million square feet, respectively). Physical occupancy rates have also shown promising growth, surging to around 65% as of June 2023 from a mere 25% in June 2022.

Infrastructure Urban

03 Nov 2025

Vice-President Backs Global Unity at IN-STEP 2025

Vice-President of India, Shri C. P. Radhakrishnan, addressed delegates at the 3rd edition of the International Strategic Engagement Programme (IN-STEP) held at the Vice-President’s Enclave in New Delhi. IN-STEP serves as a key dialogue platform for senior national security officers from India and friendly foreign nations. The current edition hosts 44 delegates, including 32 international participants representing 24 Global South countries. Commending the joint efforts of the National Defence College, National Security Council Secretariat, Ministry of External Affairs, and Ministry of Defen..

India to Host Global Maritime Events in Visakhapatnam

India will host three major international maritime events in February 2026 at Visakhapatnam — the International Fleet Review (IFR) 2026, Exercise MILAN 2026, and the Indian Ocean Naval Symposium (IONS) Conclave of Chiefs. Scheduled from 15 to 25 February 2026, this marks the first time India will conduct all three significant maritime gatherings simultaneously. The events embody Prime Minister Shri Narendra Modi’s MAHASAGAR vision — Mutual and Holistic Advancement for Security and Growth Across Regions — announced in 2025. The MAHASAGAR framework extends India’s SAGAR (Security and ..

Heavy Industries Ministry Frees 4.4 Million Sq Ft Under SCDPM 5.0

Inspired by the Prime Minister’s vision to institutionalise Swachhata and clear long-pending matters, the Ministry of Heavy Industries (MHI), along with its Central Public Sector Enterprises (CPSEs) and Autonomous Bodies (ABs), actively participated in the fifth consecutive year of the Special Campaign for Disposal of Pending Matters (SCDPM) 5.0, held from 2 to 31 October 2025. Throughout the campaign, MHI worked closely with the Department of Administrative Reforms and Public Grievances, reporting daily progress on a dedicated monitoring portal. Shri Bhupathi Raju Srinivasa Varma, Minister..