A report by Nuvama indicates that the office space market in India is stabilizing, with vacancy rates expected to decline slightly due to improving rental growth and balanced demand-supply trends. Currently, around 176 million square feet of new office space is projected to be added by 2028, although actual deliveries may vary based on labor and financing conditions. In the first quarter of 2026, office leasing fell to 11.1 million square feet, a 22% decrease year-on-year, while overall vacancy dropped to 13.1%, marking ten consecutive quarters of decline. Bengaluru reported the lowest vacancy rate at 7.8%, while Pune's vacancy increased due to a large supply pipeline. The IT-BPM sector continues to drive demand, accounting for 23% of total leasing. The report suggests that annual office completions will stabilize between 56-58 million square feet from 2026 to 2028, aligning with demand and supporting a gradual decline in vacancy levels.