Mumbai MarketBeat Reports

Mumbai saw gross leasing volume (GLV) of 4.78 MSF, a 75% increase compared to Q2 2023, driven by fresh leases, constituting 59% share. Professional services and engineering & manufacturing segment led with 21% and 16% share respectively. Suburban markets drove majority of Q2-24 leasing activity. Net absorption stood at 1.72 MSF, 2.3x increase from Q2 2023. H1-2024 net absorption was recorded at 4.18 MSF in line with annual activity witnessed in last two years. City level vacancy witnessed an uptick to 17.64% in Q2. City level rentals saw a marginal uptick in q-o-q basis.

Mumbai’s witnessed 132,900 SF of leasing in grade-A malls. Fashion segment dominated with 40% share. The F&B and FEC categories followed, with 18% and 17% shares. City-wide mall vacancy rate continued to witness a dip of 65 bps to 7.62%. Superior malls boast a vacancy rate of just 0.65%. About 1.2 MSF of supply is expected to be operational by end of 2024, while 0.45 MSF space is expected in 2025 from expansion of existing malls. Prominent main streets saw sustained leasing activity of 71,200 SF, driven by the fashion segment. City-wide mall rentals saw 2-3% q-o-q growth. Prominent main streets in prime locations also saw 1-3% rental appreciation over Q1 2024.

The Mumbai residential market saw 17,514 unit launches, driven by eastern and western suburban submarkets. Mid-segment properties, dominated with a 67% share. The high-end segment contributed 20% to the launches, a 40% growth compared to the average of past four quarters. Rental values exhibited a 5-6% growth over last quarter. Capital values increased by 3-6% across all submarkets driven by the city’s infrastructure progress.

Mumbai’s warehousing sector saw leasing activity of ~2.87 MSF in H1 2024. Bhiwandi submarket dominated with 98% share. 3PL led with more than 65% of deals, followed by retail (17% share). Large scale deals in Bhiwandi submarket comprised ~ 46% of deals. Industrial sector saw leasing activity of 0.13 MSF. Warehousing rentals in JNPT road, Panvel and Khopoli witnessed steady growth. The land value in Panvel, Taloja and Uran submarkets saw stellar annual growth driven by infrastructure upgrades. Land values in Thane Belapur Road continued to witness an uptrend.

Q2 2024 witnessed massive investment inflows amounting to INR 231.5 Bn (USD 2.77 Bn), marking a 1.5x q-o-q growth. The Logistics & Industrial (L&I) segment led with 56% share.