Mumbai sees healthy office leasing, logs 26% growth
Mumbai office market witnessed healthy leasing activity with 3.5 million square feet (MSF) gross leasing volume (GLV) in third quarter, a 26.9% quarter-on-quarter growth.
This is the highest GLV across the top eight cities for the quarter, with the total leasing standing at 15.1 million square feet.
Mumbai is followed by Delhi-NCR (3.4 MSF), while Hyderabad (2.4 MSF) and Bengaluru (2.2 MSF) are a distant third and fourth.
Chennai (1.8 MSF) follows next to get into the list of top five contributors for the quarter, data released by Cushman and Wakefield said.
While the GLV recorded in third quarter is lower than the second quarter volume by 13%, it is in line with the volume recorded in the first quarter of the year, showcasing sustained momentum in the sector.
The report highlights that the total leasing volume YTD, meanwhile stands at 48.2 MSF. Looking at the average quarterly run rate, the leasing volume may reach close to 64 MSF for the entire 2023.
The office net absorption of Mumbai for the quarter also looks promising, exhibiting robust demand for office spaces in the city.
In Q3FY23, the net absorption recorded is 1.14 MSF, which is more than 120% Q-o-Q growth and 11.3% Y-o-Y growth.Mumbai has witnessed a consistent fresh space demand across prominent markets like BKC and Lower Parel and higher term renewals activity across suburban markets like Powai and Malad Goregaon.
When it comes to the sectors actively contributing to Mumbai’s office leasing, the report observed that in Q3FY23, the IT-BPM, captive segment, engineering and manufacturing, telecom, and BFSI sectors have the highest sectoral shares in the leasing volumes. In the city, office leasing activity by the engineering and manufacturing sector grew by
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