Headline numbers
Net absorption reached 3.2 M sq ft across the MMR in the second quarter, driven primarily by GCC expansions in BKC and Andheri East, and by BFSI consolidations in Lower Parel. Vacancy compressed 80 bps overall, with BKC now at 6.4% and Nariman Point at 5.8% — both structurally tight.
Where the demand came from
Four sectors accounted for 78% of absorption: GCCs (44%), BFSI (18%), consulting (10%) and life sciences (6%). Average deal size held at 32,000 sq ft, though larger tenants continued to pre-lease Grade A stock in Powai and Vikhroli.
Rents & warm-shell delta
Warm-shell inventory now commands an 18–24% premium over bare-shell in the same buildings, up from 12% a year ago. This reflects both fit-out cost inflation and tenants' preference for shorter go-live timelines.
Outlook to Q4
We expect BKC and Nariman Point vacancy to compress further. Lower Parel supply is thin. Watch Powai and Vikhroli for the largest 2027 leases as new Grade A stock hits the market.
Key takeaways
- GCCs are the single most important demand driver; expect this to continue into FY27
- Warm-shell premium widening — factor higher fit-out cost recovery into lease terms
- BKC and Nariman Point are structurally supply-constrained through H1 FY27