December 6, 2025: Mumbai’s office market continued to strengthen in Q3 2025, with gross leasing activity climbing to 2.44 million sq ft — a 6.33% quarter-on-quarter rise, according to JLL. The report notes that domestic occupiers remained the primary demand drivers, with Navi Mumbai, the Western Suburbs, and SBD North emerging as the most active submarkets.
JLL highlighted that “Quarterly net absorption was 2.10 million sq ft, up by 67% q-o-q. Navi Mumbai led net absorption with 52%, with key deals including Smartworks and Dow Chemicals being significant ones for the submarket.” Strong traction in these regions helped bolster overall market performance.
The quarter saw the addition of 1.63 million sq ft of new office supply, largely concentrated in Thane and Navi Mumbai. Thane’s new completions also featured significant pre-commitments, reflecting heightened occupier confidence. With absorption outpacing supply, vacancy dropped to 11.2%, a 50-bps decline from the previous quarter, signalling sustained demand for quality office spaces.
Rents continued to firm up, rising 0.6% quarter-on-quarter and 4.5% year-on-year. Submarkets such as SBD BKC, SBD North, and SBD Central saw the most notable rental growth. Capital values, however, grew at an even faster pace, reinforcing Mumbai’s appeal among investors focused on long-term appreciation as well as stable income returns.
Looking ahead, JLL expects the upcoming supply to be absorbed steadily as many occupiers are close to finalising deals in nearly completed projects. Despite strong supply inflows, projected net absorption is likely to keep vacancy levels stable. The report adds that tenants will continue adopting flexible strategies, balancing premium locations with cost-effective options while adapting lease structures to evolving workplace needs.
The Q3 trends underline Mumbai’s resilience as a major office market, supported by active demand, rising occupancies, and continued investor confidence.
Source: Real Estate Asia
