Mumbai's office market experienced significant growth in the first half (H1) of 2024. There were 5.8 million square feet of office space transactions, which is a 79% year-on-year increase. Among eight cities in India, Mumbai had the second highest level of office leasing activity.
The new office completions in Mumbai reached 4.3 million square feet in H1 2024. This marks a 205% year-over-year increase. The report also noted a 16% year-over-year increase in residential real estate sales, with 47,259 units sold in H1 2024.
Despite the rise in sales, new residential launches declined by 7% year-on-year, with 46,985 units introduced. These figures were reported in Knight Frank India's "India Real Estate: Residential and Office (January-June 2024)" report.
Furthermore, the average home price rose by 4% compared to H1 2023. Steady demand from buyers helped with this price increase. The growth in Mumbai's office sector is due to developer confidence and increased transactions. Improved infrastructure, higher physical occupancy levels, and an economic climate are also reasons.
Indian enterprises accounted for 80% of the office space transactions. This is supported by the growing domestic economy. Flex office spaces made up 10% of total leasing activity in H1 2024. Third-party IT services and global capability centres each accounted for 5% of the market share.
The average office rent increased by 4% year-over-year. The research noted that Mumbai's residential market saw its highest half-yearly sales volume since H1 2012. A total of 46,985 new residential units were introduced during this period.
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