Leasing activity picks up momentum in Q3

• Gross leasing reached 2.44 million sq ft, up 6.33% q-o-q, indicating sustained demand momentum. Leasing activity in Q3 2025 was primarily driven by domestic occupiers, with Navi Mumbai, Western Suburbs and SBD North submarkets leading the charts.
• Quarterly net absorption was 2.10 million sq ft, up by 67% q-o-q. Navi Mumbai led net absorption with 52%, with key deals including Smartworks and Dow Chemicals for being significant ones for the submarket.

Vacancy continues to plunge, tightening in key clusters

• Approximately, 1.63 million sq ft of new supply was added in the quarter, mostly in Thane and Navi Mumbai. Thane completions included pre-commitments as well.
• Vacancy is now down to 11.2% as a result of healthy net absorption against supply addition, declining by 50 bps q-o-q, indicating the strong take-up and higher occupancies prevailing in prime office assets.

Robust investor demand fuels capital appreciation, rents also experience upward momentum across markets

• Overall rents grew 0.6% q-o-q and 4.5% y-o-y, with SBD BKC, SBD North and SBD Central experiencing the largest quarterly gains.
• Capital values outpaced rents, maintaining market appeal for investors targeting both capital appreciation and steady rental income.

Outlook: Upcoming supply expected to meet strong market demand across key sectors

• We anticipate healthy absorption of new supply as many occupiers are in advanced stage of concluding transactions in supply nearing completion.
• Despite strong supply additions, projected net absorption should allow for steady state in vacancy levels. Tenants will likely pursue an adaptable approach, combining prime and affordable locations with diverse lease terms and changing requirements.