NEW DELHI: In the first half of 2026, Mumbai’s gross office leasing reached 7.3 million sq ft, marking a 33% year-on-year increase, as reported by Knight Frank India.
This notable growth is attributed to significant institutional transactions and strong demand from global capability centers (GCCs), BFSI firms, and third-party IT/ITeS occupiers.
Office completions, however, saw a 30% decline year-on-year, totaling 1.6 million sq ft during this period. Mumbai’s overall office stock increased by 3% year-on-year, reaching 173.8 million sq ft.
Vacancy rates dropped by 205 basis points year-on-year to 15.6% in H1 2026 due to heightened leasing activity and reduced supply.
Average rental rates experienced a slight uptick of 0.5% year-on-year, hitting ₹130 per sq ft per month compared to ₹125 in 2025.
In H1 2026, GCCs accounted for 46% of Mumbai’s total office leasing, a significant surge from 11% in H1 2025, while India-facing occupiers comprised 45% of transactions.
Flexible workspace operators represented 6% of leasing activity, with third-party IT services at 4%.
SBD Central emerged as the leading office district in Mumbai, contributing 46% to total leasing, primarily driven by transactions in Powai. SBD West followed with 20%, while the peripheral business district accounted for 14%.
Together, SBD Central, SBD West, and the peripheral business district accounted for nearly 80% of total office transactions during this period.
BKC and off-BKC made up 16% of leasing, Central Mumbai 9%, and CBD and off-CBD 3%.
Among business districts, BKC and off-BKC commanded the highest rental range at ₹237-446 per sq ft per month, followed by CBD and off-CBD at ₹200-279, and Central Mumbai at ₹195-279 per sq ft per month.
SBD Central recorded rents varying between ₹130-232 per sq ft per month, while SBD West saw a range of ₹102-195 per sq ft per month.
