Mumbai’s office property market maintained strong momentum in the fourth quarter of 2025, with prime office rents rising about 8% year-on-year, according to the latest global office report by a leading real estate consultancy. The increase highlights the city’s standing as one of Asia’s costliest and most active commercial real estate markets, supported by sustained occupier demand and limited availability of top-grade space.
During Q4 2025, Grade-A office rents across major micro-markets such as Bandra-Kurla Complex (BKC), Lower Parel and Nariman Point recorded some of the sharpest increases in the country. The growth was driven by continued leasing interest from multinational corporations, financial institutions, technology companies and professional services firms seeking high-quality spaces with strong infrastructure and connectivity.
Despite global economic uncertainties, businesses continued to prioritise premium offices in core business districts, signalling confidence in Mumbai’s long-term commercial real estate prospects. Analysts noted that constrained supply in central business districts (CBDs) has kept upward pressure on rentals, even as new developments emerge in peripheral locations.
Vacancy levels in the Grade-A segment edged lower during the quarter as net absorption remained steady. Demand was supported by corporate expansion, relocation to modern office campuses and a preference for upgraded workplaces that enhance employee productivity and retention. Controlled new supply relative to demand also helped sustain rental growth.
Compared to other major Indian office hubs such as Delhi NCR and Bengaluru, Mumbai led rental growth in Q4 2025. Internationally, while rents remain competitive against global benchmarks, the city continues to rank among higher-priced office markets due to limited prime inventory and strong connectivity via rail, road and air networks.
Market observers expect rental values to remain firm in 2026, backed by ongoing leasing activity, tight prime supply and sustained interest from global and domestic occupiers.
Source: Prop News Time
