Mumbai’s office leasing market achieved a significant milestone in 2024, with 12.1 million square feet of total absorption. According to a CBRE South Asia report, the October-December quarter alone accounted for 5.6 million square feet, marking the city’s highest quarterly leasing activity. This strong performance highlights Mumbai’s critical role in India’s commercial real estate sector.

BFSI and Flexible Space Drive Leasing

The BFSI sector dominated Mumbai’s leasing activity, contributing 45% of total absorption in the final quarter of 2024. Flexible space operators and research, consulting, and analytics sectors followed, accounting for 15% and 11%, respectively. Mumbai’s diverse tenant base and robust infrastructure cemented its position as a hub for various industries.

Small-sized deals primarily drove this growth, with the city capturing an 11% share in Global Capability Center (GCC) leasing and 19% in green-certified office space leasing. “Mumbai’s performance reflects its dynamic office space market and its ability to attract global and domestic occupiers,” the report stated.

India’s Office Leasing Sets New Records

On a national scale, 2024 was a historic year for office leasing across nine major Indian cities, with total absorption reaching 79 million square feet—a 16% increase from 2023. Bengaluru led with 28% of the total absorption, followed by Hyderabad at 16% and Mumbai at 15%. The new office supply totalled 52.3 million square feet, with Bengaluru, Hyderabad, and Pune contributing 67% of the additions.

The GCC segment emerged as a key demand driver, contributing 37% to total leasing. Technology companies expanded aggressively, accounting for 24% of leasing activity, while flexible space operators and BFSI firms contributed 19% and 16%, respectively. “The skilled workforce and business-friendly environment have positioned India as a global hub for technology and finance,” the report noted.

Sustainability Takes Center Stage

Green-certified office spaces gained momentum, making up 56% of total leasing in the October-December quarter. Mumbai captured 19% of this activity, while Hyderabad led with 27%, followed by Bengaluru at 21%. This trend underscores the growing importance of sustainable real estate in India’s commercial market.

The last quarter of 2024 was particularly notable, with office leasing hitting an all-time high of 22.2 million square feet, driven by Mumbai, Bengaluru, and Hyderabad, which collectively accounted for 66% of the space take-up. Technology companies led the charge, contributing 26% of leasing activity, followed by flexible space operators at 21% and BFSI firms at 17%.

Outlook for Mumbai’s Market

Mumbai’s strong leasing performance in 2024, bolstered by its diverse occupier mix and strategic infrastructure developments, reflects its resilience and adaptability. The increased focus on green-certified spaces and demand from BFSI, technology, and flexible workspace operators signals a robust and evolving market.

As India’s commercial real estate market continues to grow, Mumbai’s role as a key player is set to expand further, aligning with national trends emphasising sustainability and innovative workspace solutions. The city remains a magnet for businesses seeking quality spaces in one of the country’s most vibrant economic hubs.