Mumbai Office Leasing Climbs 33% in First Half of 2026

## Mumbai Office Leasing Climbs 33% in First Half of 2026 Mumbai registered gross office leasing of 7.3 million square feet during the first half of 2026, marking a 33% rise compared to the same period the previous year. A recent market analysis highlighted that this figure represents one of the city’s strongest half-year performances, largely driven by sizable institutional deals along with solid demand from global capability centers, banking and financial services companies, and third-party IT and IT-enabled services tenants. During the same period, new office completions dropped by 30% year-on-year, reaching 1.6 million square feet. Overall office inventory in Mumbai increased by 3% to 173.8 million square feet. ## Declining Vacancy and Rents Office vacancy levels decreased by 205 basis points, falling to 15.6% during H1 2026. This reduction was supported by rising leasing volumes and a slower pace of new supply entering the market. The average transacted rent rose slightly by 0.5% year-on-year, reaching ₹130 per square foot per month. In the previous year, the average stood at ₹125 per square foot per month. ## Key Tenant Segments Global capability centers represented 46% of all office leasing activity in Mumbai during the first half of 2026, a significant jump from 11% a year earlier. Domestic-facing companies contributed 45% of transaction volume. Flexible workspace operators accounted for 6% of leasing, while third-party IT services made up 4%. ## Leading Office Submarkets SBD Central emerged as Mumbai’s top office district, representing 46% of total leasing, with Powai as a major contributor. SBD West followed with 20%, and the peripheral business district accounted for 14%. Combined, these three areas made up nearly 80% of all office transactions. BKC and off-BKC represented 16% of leasing activity, Central Mumbai contributed 9%, and the CBD and off-CBD areas accounted for 3%. ## Rental Ranges by Submarket Among business districts, BKC and off-BKC recorded the highest rental values, ranging from ₹237 to ₹446 per square foot per month. The CBD and off-CBD followed with rents between ₹200 and ₹279, while Central Mumbai posted a range of ₹195 to ₹279. SBD Central saw rents between ₹130 and ₹232 per square foot per month, and SBD West ranged from ₹102 to ₹195.