India’s Grade A office boom leaves mid-tier behind: ANAROCK
Net Grade A office absorption across India's top 7 cities hit 58.2 million sq. ft. in 2025, up 17% YoY and the market's best year on record.
Net Grade A office absorption across India's top 7 cities hit 58.2 million sq. ft. in 2025, up 17% YoY and the market's best year on record.
Vacancy rates in Delhi’s key assets have plummeted to 0–2%, while Mumbai has recorded the country’s sharpest rental appreciation at 15–20% year-on-year.
First quarter’s 3.1 million sq. ft leasing, anchored by a 48% high street surge and domestic retailers commanding 79% market share, reflects strategic format diversification as supply constraints drive innovation.
Persistent inflation concerns, rising global yields and uncertainty over the US-Iran conflict are expected to keep India’s benchmark 10-year bond yield under upward pressure despite comfortable domestic liquidity conditions.
Markets staged a recovery after early pressure from rising crude prices and rupee weakness, while easing West Asia tensions and strong auto earnings boosted sentiment in broader markets.
With deep linkages to financial markets, urban infrastructure and asset formation, real estate continues to play a systemic role in shaping India’s long-term economic growth trajectory.
The Q1 2026 Sentiment Index highlights a transition phase for the Indian real estate sector. While global challenges are making stakeholders cautious, the core market strength remains intact.
Rising demand from GCCs, corporates and start-ups, along with hybrid work trends, is driving capacity expansion while strong cash flows keep leverage and credit profiles stable.
March 2026 saw a marginal recovery in credit card spending on a sequential basis. However, y-o-y growth remained subdued at 9.0% versus 22.4% in March 2025, primarily due to the base effect.
Strong launch momentum and premium housing demand drive growth, even as buyers remain cautious in the short term.