A report from the global real estate firm CB Richard Ellis suggests that millions of square feet of office space will be added to India’s stock in 2011, with Mumbai particularly likely to see many new commercial developments completed.
The strength of the Indian economy is such that some 50 million square feet of office space could well become available across the sub-continent over the next 18 months or so, with Mumbai expected to account for roughly 25 per cent of the country’s additional office space.
Overall vacancy rates associated with office space in India are likely to diminish slightly in the coming months, while real estate sectors in general are expected to perform relatively well, CBRE’s South Asia managing director Anshuman Magazine suggested recently.
“The overall real estate performance of the country has been on an upward trend with increasing transaction volumes,” Mr Magazine remarked.
“This is due to sustained IT industry activity, impact of economic recovery on new economy sectors, global optimism on corporate expansion, consumer confidence and a rise in income levels.”
Behind Mumbai, among cities with the strongest office space development prospects in India are Bangalore, in the south of the country, and the capital, New Delhi, in the north.
A few months ago, the Indian arm of the Siemens engineering conglomerate revealed its intention to introduce new sustainability measures and technologies across the dozens of offices it currently operates in major cities throughout the country.
Editor’s notes: Take-up through office leasing activity in Mumbai in the first quarter of 2023 was 3.05 million square feet, representing a 32 per cent drop from the previous strong quarter and an 11 per cent year-on-year drop.
In 2022, the most expensive district in which to rent office space in Mumbai was the Bandra Kurla Complex, where it cost an average of 277 Indian rupees per square foot per month, followed by the central business district (CBD), where it costs 212 rupees per square foot per month, followed by Worli / Prabhadevi district, where it costs 191 rupees per square foot per month.
The cheapest area in which to rent office space in Mumbai in 2022 was Navi Mumbai, at 67 rupees per square foot per month.
Cushman and Wakefield reported that gross leasing volume (GLV) in Mumbai in the fourth quarter of 2025 was 4.3 million square feet. This volume was driven primarily by strong demand from office providers and flexible workspace operators, accounting for nearly 40 per cent of total leasing. This resulted in 2025’s total GLV reaching 16.9 million square feet.
Leasing by flex space providers accounted for 18 per cent of total activity over the year.
For those looking for alternatives to renting office space on conventional leasehold terms, there is a wide range of flexible office and workspace solutions, such as private serviced offices, managed office suites, and corporate coworking solutions. Some of these flex space solutions in Mumbai can be seen here.
At the end of 2025, Mumbai’s citywide vacancy rate stood at 10.0 per cent, with total stock at circa 123 million square feet. It was noted that a new supply of circa 7.2 million square feet was expected to be completed in 2026.
Going into 2026, average rent across all submarkets stood at INR 168.6 per square foot. This was supported by robust demand in key office districts such as Andheri Kurla Road and Lower Parel.
As with the majority of office markets globally, occupiers in Mumbai experienced a flight to quality, which is likely to create upward pressure on prime rents.