January 2, 2026: Mumbai’s office real estate market saw a significant slowdown in new supply during 2025, even as demand for quality workspaces remained robust, underscoring tightening conditions in one of India’s most important commercial hubs. According to real estate consultant Colliers, fresh office supply in Mumbai fell by a steep 37% last year, highlighting a widening gap between demand and availability.
Colliers data shows that Mumbai added just 5.2 million sq ft of new office space in 2025, compared to 8.3 million sq ft in the previous year. Despite this sharp decline, demand from occupiers continued to stay strong, driven by technology companies, BFSI players, and global firms setting up Global Capability Centres. As a result, vacancy levels across the city declined, while rentals moved upward.
The trend in Mumbai mirrors a broader national pattern where office demand outpaced supply across India’s top seven markets, including Bengaluru, Delhi-NCR, Hyderabad, Chennai, Pune, and Kolkata. However, the contraction in Mumbai was among the most pronounced. Delhi-NCR also saw a decline, with new supply falling 15% to 7.4 million sq ft.
Colliers noted that the supply-demand imbalance has begun to reshape market dynamics. “With demand outpacing supply in recent times, overall vacancy levels fell by 49 basis points, while average rentals strengthened by up to 15% YoY (year-on-year) across major cities,” Colliers India said.
While cities such as Bengaluru, Chennai and Pune recorded an increase in new office completions, Mumbai’s constrained land availability, longer approval timelines and focus on premium developments have limited near-term additions. This has strengthened the city’s position as a landlord-driven market, especially in prime business districts.
Overall, India’s top seven cities recorded a five per cent rise in new office supply to 56.5 million sq ft in 2025, while leasing activity grew six per cent to 71.5 million sq ft. In Mumbai, the combination of falling supply and steady absorption is expected to keep vacancy levels tight and rentals firm, reinforcing the city’s status as a high-demand office market despite limited new stock.
