
India’s Office Absorption Hits Record 23.9 Mn Sq Ft in Q2 2026 as Demand-Supply Gap Widens to 9 Mn Sq Ft, Fueling Rental Growth – Vestian.
New Delhi, 16th July 2026: Construction activity rebounded in Q2 2026 after a subdued previous quarter, while office leasing grew at a much faster pace. This can be substantiated by the fact that new completions increased by 53% quarter-on-quarter to 14.9 Mn sq ft, while absorption reached an all-time high of 23.9 Mn sq ft, widening the demand-supply gap to 9.0 Mn sq ft in Q2 2026. As a result, vacancy levels improved by 105 basis points and rentals appreciated in the range of 3-9% over the previous year. The gradual widening of the demand supply gap is expected to further reduce vacancy levels and drive rental appreciation across major commercial hubs, indicating a gradual shift towards a developer-driven market.Source: Vestian ResearchOffice Market Summary: Q2 2026City
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