Robust net absorption in Q3 is up 2.5X q-o-q

• Quarterly net absorption in Q3 reached a historic high of 2.49 million sq ft, backed by strong pre-commitments in new completions. The eastern part of the SBD submarket had the highest share of net absorption, followed by the Suburbs West.
• Gross leasing in the quarter was recorded at 1.39 million sq ft, down by 23% y-o-y. On a YTD basis, GLV stands at 6.27 million sq ft, up by 14% y-o-y. Leasing activity in Q3 was driven by Flex (35.2%), Manufacturing (24.9%) and Healthcare with 16.8%.

Due to robust healthy supply in consecutive quarters, vacancy up by 20 bps q-o-q

• New completions of 3.03 million sq ft across three projects were recorded across the SBD and Suburbs submarkets in Q3 2025.
• The robust supply addition in the quarter outpaced net absorption, resulting in the city’s overall vacancy rate increasing to 18.8%, up 20 bps from previous quarter.

Overall rents up marginally q-o-q, backed by strong demand

• Overall city-level gross rents were up marginally by 1.9% y-o-y. At a submarket level and on a y-o-y basis, gross rents in the CBD increased the most, while the SBD submarket saw lower rents during the quarter on account of fewer rentals in select projects.
• Capital values rose 1.4% q-o-q and 3.5% y-o-y, with yields dropping marginally in all submarkets.

Outlook: New supply on track to reach historic high by end-2025

• In terms of supply, the first nine months of 2025 recorded a historic high of 9.65 million sq ft. This supply is expected to touch 10 million by end-2025, indicating massive opportunities for occupiers in the coming years.
• Strong pre-commitment levels for 2026 projects, particularly in the SBD East, are expected to push net absorption to record highs. Demand from GCCs, supported by Maharashtra’s new GCC policy, will lead office space uptake in the near-term.