M A R K E T B E AT

MUMBAI
Office Q1 2023

Quarterly leasing activity slows but remains reasonably strong

The first quarter of the year recorded a gross leasing volume (GLV) of 3.05 msf, a drop of 32% from a very strong previous quarter and an 11% drop on
a y-o-y comparison. However, this volume still remains reasonably good compared to the average quarterly volume of 3.5 msf during the last 6 quarters
until Q4-22 (the post-Covid office rebound period). Fresh leases accounted for 1.35 msf in the total GLV. Within fresh leases, the smaller sized
3.05 msf GROSS LEASING (Q1 2023) transactions (below 50,000 sf) were dominant as opposed to the previous two quarters where large transactions (100,000 SF+) dominated. Occupiers
from IT-BPM (38%), BFSI (21%) and Professional Services (18%) sectors were active during this quarter. Emerging segments such as GCCs and Flex
space continue to witness traction, and there are enquires that suggest this momentum to persist.
0 msf NEW COMPLETIONS ( Q1 2023)
Leasing across Lower Parel, Malad-Goregaon and Thane-Belapur Road were active markets capturing almost 60% of the quarterly GLV. The first
quarter recorded net absorption of 0.72 msf, which is lower by 25% y-o-y, although it stays nearly in line with previous 8-quarter average of 0.83 msf.
16.05 msf UPCOMING SUPPLY
(Q2 2023 – 2025)
No project completions in the quarter; vacancy drops further
No supply additions were witnessed in this quarter. However, 2023 is expected to see close to 6.16 msf supply, nearly 25% of which has been pre-
leased. Limited supply addition and sustained leasing culminated into a 66 bps drop in vacancy rate to 20.4%. We foresee a supply pipeline of ~16 msf
over the next three years. The majority of this supply (2023-2025) is expected in Andheri-Kurla, Thane and Thane-Belapur Road submarkets.
MARKET INDICATORS OVERALL
Q1 2023 Overall uptick in city rentals witnessed
Overall city-wide market rentals have witnessed an uptick of 1-2% from the previous quarter. Key projects under institutional ownership and prominent
12 Forecast
Q1 2022 Q1 2023 developers across all submarkets is expected to witness rental increase in upcoming quarters, given the low vacancy.With operationalisation of Metro
month
2A and 7 lines, the rentals are expected to see an improvement in upcoming quarters in sub markets like Malad Goregaon and Andheri Kurla.
Overall
23.8% 20.4%
Vacancy

Weighted Average
NET ABSORPTION & NEW SUPPLY OVERALL VACANCY & WEIGHTED AVERAGE ASKING RENT
Net Asking Rents 117.2 120.2
(INR/sf/month) 140 25%
8.0 120
YTD Net 590,381 723,735 20%
Absorption (sf) 100
6.0
80 15%
4.0 60 10%
40
2.0 5%
20
0 0%
0.0

Q3 2022
Q4 2022
Q1 2023
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Q12019
Q22019
Q32019
Q42019
Q12020
Q22020
Q32020
Q42020
Q12021
Q22021
Q32021
Q42021
Q12022
Q22022

2023F
2017 2018 2019 2020 2022 Q1 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 Q1 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% 61,649 - - -10,578 243.3 35.5 33.1

SBD - BKC 10,720,846 14.9% 312,888 232,215 - 114,780 266.1 38.8 36.2

Worli 1,604,000 9.2% 77,213 1,975,504 - 14,895 211.9 30.9 28.8

Lower Parel 11,936,397 43.7% 323,268 233,333 - 32,502 170.6 24.9 23.2
Andheri-Kurla 14,157,800 13.8% 299,535 4,674,000 - 74,780 122.7 17.9 16.7
Powai 6.856,286 9.9% 272,603 800,000 - -2,671 147.3 21.4 20.1
Malad/Goregaon 14,779,347 14.3% 460,768 1,800,000 - -30,181 111.6 16.3 15.2

Central Suburbs 12,056,532 23.7% 361,958 651,000 - 99,289 146.2 21.3 20.1

Vashi 1,645,068 16.5% 14,983 - - 1,150 88.8 12.9 12.1

Thane-Belapur Road 22,843,681 26.2% 811,530 3,688,500 - 428,757 65.7 9.6 8.9
Thane 10,364,977 11.3% 51,930 2,000,000 - 1,012 71.6 10.4 9.7

TOTAL 108,927,748 20.4% 3,048,325 16,054,552 - 723,735 120.2 17.5 16.4

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
#YTD gross leasing activity includes pre-commitments and term renewals Manager, Research Services
*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),
Chandivali, Marol; Malad Goregaon- Malad, Goregaon, Jogeshwari, and Borivali; Central Suburbs- Bhandup, Kanjurmarg, Vikhroli, Kurla, and Wadala; Thane- Belapur Rd- Airoli, Ghansoli,
Director, Research Services
Mahape, Juinagar, Seawoods, and Dombivili; Thane- Thane, Kapurbawdi, Ghodbunder Road, and Wagle Estate +91 22 67715555 / suvishesh.valsan@cushwake.com
US$ 1 = INR 82.27 € 1 = INR 88.15
Numbers for the fourth quarter are based on market information collected until 22nd March 2023
KEY LEASE TRANSACTIONS Q1 2023
cushmanwakefield.com
PROPERTY SUBMARKET TENANT SF TYPE
Prism Towers Malad Goregaon Teleperformance 50,000 Fresh Lease A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
Mindspace Airoli Thane Belapur Road LTI Mindtree 200,000 Term Renewal Cushman & Wakefield (NYSE: CWK) is a leading global real estate services
firm that delivers exceptional value for real estate occupiers and owners.
Sunteck Gateway 51 Central Suburbs Upgrad 187,000 Pre-commitment Cushman & Wakefield is among the largest real estate services firms with
approximately 52,000 employees in over 400 offices and approximately 60
countries. In 2022, the firm had revenue of $10.1 billion across core services
SIGNIFICANT PROJECTS PLANNED AND UNDER CONSTRUCTION of property, facilities and project management, leasing, capital markets, and
valuation and other services. To learn more,
PROPERTY SUBMARKET MAJOR TENANT SF COMPLETION DATE
visit www.cushmanwakefield.com or follow @CushWake on Twitter.
K. Raheja Altimus Worli Morgan Stanley 1,015,504 Q3 2023
©2022 Cushman & Wakefield. All rights reserved. The information contained within this
Oberoi Commerz 3 Malad – Goregaon Morgan Stanley 1,800,000 Q4 2023 report is gathered from multiple sources believed to be reliable. The information may
contain errors or omissions and is presented without any warranty or representations as to
Centaurus Thane NA 2,000,000 Q4 2024
its accuracy.
Waterstone Business Park Andheri-Kurla NA 1,250,000 Q2 2025