According to Crisil Ratings, the vacancy levels in India's Grade A commercial office space are expected to decrease by 50 basis points, reaching 15.5-16.0% by the end of the current fiscal year. This decline is attributed to a consistent demand-supply gap, healthy net leasing growth, and the completion of ongoing projects. The flexible workspace sector is anticipated to lead this leasing growth with double-digit increases, while the domestic IT/ITeS and engineering sectors show moderate growth. Despite potential risks from AI disruptions and geopolitical uncertainties, India's long-term structural advantages, such as a skilled workforce and policy support, are expected to sustain the sector. The NCR and MMR are projected to experience a more significant decline in vacancy levels, while southern markets like Bengaluru, Chennai, and Hyderabad are also set to benefit from healthy demand. Overall, Crisil-rated commercial office players are expected to maintain stable credit profiles due to contracted rental escalations and low vacancy levels.