Overview

India’s commercial real‑estate market is entering a quality‑led growth phase, with rising office rentals reflecting strong occupier confidence across multiple business districts.

Leasing Activity

CBRE data show that office leasing reached 45.5 million sq ft in the first half of 2026, a 9.6 % year‑on‑year increase. Global Capability Centres (GCCs) contributed 43 % of this demand, driven by multinational expansions in technology, engineering, financial services and other strategic functions.

Cushman & Wakefield recorded 21.4 million sq ft of gross leasing in Q2 2026 across the top eight Indian cities. Bengaluru accounted for 26 % of this volume, while Mumbai and Delhi‑NCR each contributed 19 %. The primary demand drivers were IT‑BPM firms, followed by flexible‑workspace operators, engineering and manufacturing companies, and banking and financial services firms.

JLL reported that the Mumbai Metropolitan Region (MMR) office market delivered its strongest‑ever leasing quarter in Q1 2026, surpassing the previous peak set in late 2025. New supply during the quarter was 1.3 million sq ft, concentrated mainly in Thane and SBD North. Average rents rose 0.7 % quarter‑on‑quarter and 3.4 % year‑on‑year.

Regional Highlights

Mumbai’s office geography is diversifying beyond the traditional central business districts. The Bandra‑Kurla Complex (BKC) continues to command premium rents due to its concentration of financial and professional services firms and superior connectivity. Emerging clusters such as Andheri, Goregaon East, Thane, and the Thane‑Belapur corridor are attracting corporates seeking Grade A spaces at varied price points.

  • Andheri benefits from airport proximity, road and metro links, and a strong residential catchment, positioning it as a key beneficiary of the quality‑led shift.
  • Goregaon East is gaining traction thanks to metro connectivity, integrated mixed‑use developments, and easy access to established residential neighbourhoods.
  • Thane has evolved into an independent economic and residential hub; JLL’s data indicate robust leasing activity, and industry leaders highlight its large residential base, infrastructure upgrades, and growing business ecosystem.

Supply Outlook

Developers anticipate nearly 24 million sq ft of new office supply in Mumbai over the next two years, backed by strong pre‑commitments and healthy absorption rates. While additional Grade A stock can accommodate expansion and help keep rents aligned with occupier economics, the market stresses that only well‑located, high‑quality projects will sustain pricing power.

Future Outlook

Analysts expect the positive trend to continue for the next 12‑24 months, with demand anchored by GCC expansion, domestic business growth, flexible‑workspace demand, and a persistent preference for premium, well‑connected office environments. Rising rents are viewed as a reflection of genuine business expansion and limited premium inventory rather than speculative pricing.

Quotes

  • Bhadresh Shah, Managing Director, Today Group: “Rising office rentals are increasingly a sign of the strength and maturity of India’s commercial real‑estate market…”.
  • Rohit Garodia, Founder & Managing Partner, Pecan Realty: “Andheri is emerging as one of the key beneficiaries of this shift…”.
  • Aditya Pushkarna, Associate Director, Banke International Properties: “In BKC, occupiers are willing to pay a premium because connectivity, access to talent and proximity to financial institutions create tangible business value.”
  • Vikash Kawar, Director, AGM Vijaylaxmi Group: “Goregaon East is increasingly emerging as a preferred destination for businesses and HNI investors…”.
  • Bhushan Bhanushali, Founder, VB Group: “Thane’s distinct commercial identity is being strengthened by its established residential base and expanding business ecosystem.”
  • Nishant Deshmukh, Founder & Managing Partner, Sugee Group: “The integration of high‑quality commercial developments will be critical in enabling Thane to emerge as a more self‑sustained urban centre.”

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