Gross Leasing volume up by 55.4% y-o-y

• Quarterly gross leasing volume reached an all-time high, surpassing the previous record of Q4 2025, driven by substantial pre-commitments in Eastern Suburbs. This submarket held a 50% share in Q1 volumes, followed by Navi Mumbai and SBD North.
• Demand from BFSI dominated the quarterly leasing activity with a strong 67% share, driven primarily by a large pre-commitment. Demand from foreign-headquartered occupiers led leasing activity during the quarter.

Vacancy declines to an all-time low

• During the quarter, 1.3 million sq ft of supply was delivered, primarily in Thane and SBD North, with IT-usage buildings accounting for the majority of new completions.
• Vacancy fell by 33 bps q-o-q and 100 bps y-o-y, driven by large transactions across all submarkets. The market is positioned for new supply as recent completions are largely occupied.

Rents up by 3.4% y-o-y

• Rents increased by 0.7% q-o-q and 3.4% y-o-y. Navi Mumbai, SBD North, and Thane led rental growth with gains of 1.87%, 1.65%, and 1.33% respectively.
• Consistent with previous quarters, capital values remain aligned with rental growth, which is increasing market appeal and attracting heightened investor interest.

Outlook: Leasing activity expected to remain stable

• The market is set to experience sustained demand from occupiers as high-quality assets approach completion, with substantial pre-commitments in these developments expected to keep absorption at healthy levels over the next 12 months.
• Over the next two years, ~24 mn sq ft of supply is projected. Healthy net absorption is expected to keep vacancy within a tight range. Consolidation and expansion strategies are expected to drive demand with tenants exploring multi-cluster opportunities.