New Delhi, Aug. 31 -- A ripple effect of the West Asia war was felt on India's office leasing momentum in the June quarter (Q1FY27). Gross absorption at an all-India level (aggregate of top seven cities) declined 6% year-on-year to 19.4 million square feet (msf) and net absorption fell by a sharper 21% year-on-year to 9.9 msf, according to Propstack data compiled by Kotak Institutional Equities.

Gross absorption is the total area leased over a specific period, while net absorption subtracts the vacated space in that span. Delays in closing of realty transactions amid the West Asia conflict hurt.







Still, vacancy levels improved as new supply of office spaces declined 3% year-on-year. The aggregate pan-India vacancy level eased to 11...