New Delhi, Feb. 26 -- Grade-A office spaces are seeing faster absorption buoyed by favourable demand-supply dynamics, thus pushing vacancies lower. All-India (aggregate of top-seven cities) vacancy levels in the December quarter (Q3FY26) declined further to 12.3% from 12.7% in Q2 and 13.9% in Q3FY25, showed Propstack data compiled by Kotak Institutional Equities.

Global capability centres (GCCs) and flexible-space operators continue to dominate demand. Once a heavyweight, the share of information technology (IT) sector in the leased area has fallen to around 30% from 43-45% three years ago.

Amid worries of AI-led disruption to traditional IT business models, a likely reduction in hiring by IT firms could drag the sector's leasing share ...