Mumbai to see over 24m sq ft of new office space over the next two years

Net absorption is expected to be at healthy levels.

Mumbai's office market recorded its strongest leasing quarter on record in Q1 2026, with gross leasing volumes surpassing the previous high set in late 2025, according to JLL.

The consultancy said activity was driven by substantial pre-commitments in the Eastern Suburbs, which accounted for half of quarterly leasing volumes. The BFSI sector dominated demand with a 67% share of leasing activity, while foreign-headquartered occupiers led overall take-up.

New supply totalled 1.3 million square feet during the quarter, mainly across Thane and SBD North. Despite the additions, vacancy declined by 33 basis points from the previous quarter and by 100 basis points year-on-year, reaching an all-time low as strong leasing absorbed new completions.

Average rents increased 0.7% quarter-on-quarter and 3.4% year-on-year, led by growth in Navi Mumbai, SBD North and Thane. JLL said capital values continued to track rental growth, helping attract investor interest.

The firm expects leasing activity to remain stable as high-quality developments near completion, supported by significant pre-commitments and healthy absorption levels. Around 24 million square feet of new supply is forecast over the next two years.