Mumbai cumulative office supply to reach 14-15m sq ft in the next two years

Vacancy rates are expected to be within range.

The Mumbai office market is likely to remain upbeat according to JLL analysts, backed by the BFSI and manufacturing sectors.

“We expect healthy space take-up in quality assets in the near term, while the vacancy rate is likely to be in a similar range as seen in Q3 2024.”

Here’s more from JLL:

Over the next couple of years, cumulative supply stands at 14–15 million sq ft, and with net absorption at healthy levels, it is expected to keep vacancy within range. Some occupiers may consider relocating to cheaper submarkets or consolidating to manage costs.

Net absorption up 46% y-o-y for YTD 2024

Quarterly net absorption at 1.85 million sq ft was the highest in 2024, driven by strong demand in the Western Suburbs and SBD Central submarkets. The YTD net absorption of 5.0 million sq ft is the highest since 2017 for the Jan-Sep period.

In the first three quarters of 2024, leasing activity reached 7.4 million sq ft, surpassing the full-year 2023 numbers. In Q3 2024, the BFSI sector led with 29.7% of the quarterly gross leasing, followed by consulting.

Supply additions jump 24.5% q-o-q

Supply of 2.3 million sq ft was added in Q3 2024, driven by the Western Suburbs, SBD Central and Eastern Suburbs submarkets. Oberoi Commerz 3 Phase 3 with 1.6 million sq ft and Ascentia with 0.5 million sq ft were amongst the major completions in the quarter.

Supply in Q3 was the highest in 2024, mainly driven by large office developments coming on stream. Vacancy moved up 10 bps q-o-q to 13.0%, as strong space take-up balanced the supply influx.

Rents up by 1.8% q-o-q

Rents increased by 1.8% q-o-q in Q3 2024 and were up by 5.1% y-o-y. Western Suburbs, SBD Central and SBD BKC saw the highest quarterly growth with an increase of 3.8%, 2.3% and 1.9%, respectively.

In Q3 2024, capital values were largely in sync with rent growth. Investors showed interest in quality assets and considered stressed assets with attractive terms.

Follow the link for more news on

JLL

Also Read

Manila annual office absorption to rise by 36% from 2025 to 2029

Bangkok to see 550,000sqm of new office space next year

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit