September 9, 2025: Demand for Grade A office space in Mumbai is likely to strengthen in the second half of 2025 as occupiers close in on deals delayed by supply constraints in prime submarkets, according to JLL’s latest report.
“Even with a robust supply pipeline, the forecast for healthy net absorption should result in stable vacancy. Occupiers may continue to pursue flexible strategies, balancing premium and cost-effective locations with varied lease structures and evolving needs,” the report stated.
In Q2 2025, gross leasing stood at 2.29 million sq ft, down nearly 15% quarter-on-quarter, reflecting slower decision-making. Domestic occupiers dominated activity, with Navi Mumbai, SBD North, and SBD BKC driving most transactions. Net absorption was 1.25 million sq ft, down 10% q-o-q, with SBD North leading at 41%. Notable deals included ICICI Lombard and Zomato.
Supply additions totaled 1.12 million sq ft, largely in SBD North and Navi Mumbai, with several pre-committed completions signaling healthy occupier interest. Citywide vacancy fell to a record low of 11.7%, despite lower annual absorption.
Rents rose 0.9% q-o-q and 5.8% y-o-y, led by Eastern Suburbs, SBD North, and SBD BKC. Capital values grew faster than rents, reinforcing Mumbai’s appeal to investors seeking long-term growth and steady income.
Source: Real Estate Asia
