India’s office space market is expected to post stronger rental growth over the medium term as consolidation gathers pace, according to a report by Nuvama. The outlook suggests that solid underlying demand could help vacancy levels edge lower, supporting landlords in key office markets.
The report said gross office leasing in India fell 3% year on year to 20.6 million square feet in Q2CY26. That slowdown was linked to the US-Iran conflict, which affected corporate decision-making timelines and appears to have delayed some leasing activity during the quarter.
Even so, the broader view remains constructive. Nuvama indicated that demand for office space is still robust enough to absorb some near-term softness, with consolidation in the market likely to tighten available supply in parts of the segment and strengthen rental momentum.
The latest assessment points to a market that may be moving through short-term uncertainty while retaining a firmer medium-term trajectory. If demand stays resilient and vacancy levels continue to soften marginally, office rentals in India could see a stronger uptrend ahead.
