M A R K E T B E AT

MUMBAI
Office Q2 2023

H1-23 GLV remains consistent from similar periods since last 2 years
The second quarter of the year recorded gross leasing volume (GLV) of 2.73 msf, a marginal drop of 4% on a quarterly basis and a 9% decline as
compared to the same period last year. The H1 2023 GLV stood at 5.6 msf, which is almost comparable to the average GLV figures of H1 2022 and H1
2.73 msf GROSS LEASING (Q2 2023) 2021. Sectors like BFSI (21%), Engineering & Manufacturing (21%), and IT-BPM (16%) drove the leasing activity for this quarter.
Andheri Kurla, Malad-Goregaon, Central Suburbs and Thane-Belapur Road were active sub-markets accounting for close to 60% of Q2 GLV, mainly
driven by term renewals. Net absorption in Q2 came in at 0.52 msf, which is lower by 28% y-o-y and 20% on a q-o-q basis. While fresh leases and term
0.44 msf NEW COMPLETIONS ( Q2 2023) renewals were good, a couple of exits in select suburban sub-markets led to a lower net absorption. But the H1 2023 net absorption value is at 1.24
msf, which is in line with the last 2-year average for the same period (H1 of 2021 and 2022).

18.25 msf UPCOMING SUPPLY

(H2 2023 – 2025)
Limited project completions in the quarter; vacancy drops sharply
A mere 0.44 msf supply additions were witnessed over the last six months. Limited supply has been a concern for the Mumbai CRE market since the
last 3 quarters. As a result of limited supply entering the market amidst a broadly sustained demand momentum, the vacancy rate has fallen by a
cumulative 272 basis points over the last four quarters, making it the sharpest fall in recent period history. However, around 4.7 msf of new supply is
anticipated in the next six months, and ~30% of that comes with pre-commitment. We foresee a supply pipeline of ~18.3 msf from H2-2023 to 2025 and
the majority of this supply is expected in Andheri-Kurla, Thane-Belapur Road, and Central Suburbs submarkets. With a robust leasing activity and a
MARKET INDICATORS OVERALL considerable share in upcoming supply, the eastern submarkets are considered to be the emerging office corridor.
Q2 2023

12 Forecast City rentals remains broadly stable

Q2 2022 Q2 2023 Overall city-wide market rentals have remained stable across submarkets from the previous quarter. Select Grade-A projects under institutional
month
ownership or with prominent developers could witness a rental increase in coming quarters, given the low vacancy. With the operationalisation of Metro
Overall 2A and 7 lines, the rentals are expected to see an improvement in upcoming quarters in sub-markets like Malad-Goregaon and Andheri Kurla.
23.1% 20.2%
Vacancy

Weighted Average
NET ABSORPTION & NEW SUPPLY OVERALL VACANCY & WEIGHTED AVERAGE ASKING RENT
Net Asking Rents 117.9 120.2
(INR/sf/month) 140 25%
8.0 120
YTD Net 20%
1,241,729 1,243,203 100
Absorption (sf)
6.0 15%
80
4.0 60 10%
40
5%
2.0 20
0 0%

Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q12018
Q22018
Q32018
Q42018
Q12019
Q22019
Q32019
Q42019
Q12020
Q22020
Q32020
Q42020
Q12021
Q22021
Q32021
Q42021
Q12022
Q22022

2023F
0.0
2018 2019 2020 2022 Q1 2023 Q2 2023 2023F

NET ABSORPTION (MSF) NEW SUPPLY (MSF) WEIGHTED AVERAGE RENTS (INR/SF/MONTH) OVERALL VACANCY(%)
M A R K E T B E AT

MUMBAI
Office Q2 2023
MARKET STATISTICS

YTD GROSS PLANNED & UNDER GRADE A WTD. AVG. RENT*

INVENTORY YTD CONSTRUCTION YTD NET
SUBMARKET VACANCY RATE (%) LEASING CONSTRUCTION
(SF) COMPLETIONS (SF) ABSORPTION (SF)
ACTIVITY# (SF) (SF)^ INR/SF/MO US$/SF/YR EUR/SF/YR

CBD 1,962,814 11.0% 124,438 - - (10,578) 243.3 35.5 32.6

SBD - BKC 10,720,846 14.3% 602,386 232,215 - 187,300 266.1 38.9 35.7

Worli 1,604,000 9.1% 146,664 2,375,504 - 17,124 211.9 30.9 28.4

Lower Parel 12,169,730 43.8% 549,207 - 233,333 187,066 170.6 24.9 22.9
Andheri-Kurla 14,157,800 13.3% 609,740 4,674,000 - 139,062 122.6 17.9 16.4
Powai 6,856,286 13.1% 477,024 800,000 - (219,709) 147.3 21.5 19.7
Malad/Goregaon 14,779,347 14.1% 993,566 1,800,000 - (11,793) 111.8 16.3 14.9

Central Suburbs 12,056,532 21.9% 684,436 2,764,000 - 306,710 146.2 21.4 19.6

Vashi 1,645,068 11.3% 105,477 - - 86,806 88.8 12.9 11.9

Thane-Belapur Road 23,053,681 26.5% 1,126,622 3,478,500 210,000 522,201 66.0 9.6 8.8
Thane 10,364,977 10.8% 175,950 2,133,346 - 39,104 71.6 10.4 9.6

TOTAL 109,371,081 20.2% 5,595,510 18,257,565 443,333 1,243,203 120.2 17.5 16.1
The report highlights Grade A details only. Certain indicators are historically corrected by addition/deletion of older / refurbished projects as per grade A classification and accounting for
changes in built-up/leasable area besides adjusting tenant leases to reflect accurate market conditions.
^ Includes planned & under-construction projects until 2025 Arun P Nair
Net absorption refers to the incremental new space take-up Manager, Research Services
#YTD gross leasing activity includes pre-commitments and term renewals
*Weighted average asking rental rates for vacant spaces that provide core facility, high-side air conditioning, and 100% power backup +91 22 67715555 / arun.nair@cushwake.com
IT-BPM – Information Technology – Business Process Management
Key to submarkets: Suvishesh Valsan
CBD – Ballard Estate, Colaba, Churchgate, Fort & Nariman Point; SBD – Bandra-Kurla Complex, Bandra East, Kalina; Lower Parel- Lower Parel, Parel, and Dadar; Andheri-Kurla- Andheri (E), Director, Research Services
Chandivali, Marol; Malad Goregaon- Malad, Goregaon, Jogeshwari, and Borivali; Central Suburbs- Bhandup, Kanjurmarg, Vikhroli, Kurla, and Wadala; Thane- Belapur Rd- Airoli, Ghansoli,
Mahape, Juinagar, Seawoods, and Dombivili; Thane- Thane, Kapurbawdi, Ghodbunder Road, and Wagle Estate +91 22 67715555 / suvishesh.valsan@cushwake.com

US$ 1 = INR 82.17 € 1 = INR 89.43

Numbers for the second quarter are based on market information collected until 20th June 2023 cushmanwakefield.com
KEY LEASE TRANSACTIONS Q2 2023
PROPERTY SUBMARKET TENANT SF TYPE A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real
One International Centre Lower Parel Bajaj Electricals 60,000 Fresh Lease
estate services firm for property owners and occupiers with approximately
Kensington Powai GE Oil &Gas 98,000 Term Renewal 52,000 employees in approximately 400 offices and 60 countries. In 2022,
the firm reported revenue of $10.1 billion across its core services of
R Tech Park Malad Goregaon Tata AIG Insurance 72,000 Term Renewal
property, facilities and project management, leasing, capital markets, and
valuation and other services. It also receives numerous industry and
SIGNIFICANT PROJECTS PLANNED AND UNDER CONSTRUCTION business accolades for its award-winning culture and commitment to
Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance
PROPERTY SUBMARKET MAJOR TENANT SF COMPLETION DATE (ESG) and more. For additional information, visit
K. Raheja Altimus Worli Morgan Stanley 1,015,504 Q3 2023 www.cushmanwakefield.com.

Oberoi Commerz 3 Malad – Goregaon Morgan Stanley 1,800,000 Q4 2023 ©2022 Cushman & Wakefield. All rights reserved. The information contained within this
report is gathered from multiple sources believed to be reliable. The information may
Centaurus Thane NA 2,000,000 Q4 2024 contain errors or omissions and is presented without any warranty or representations as to
its accuracy.
Waterstone Business Park Andheri-Kurla NA 1,250,000 Q4 2025