Mumbai, the country’s financial capital, saw leasing momentum surge in Andheri East and Worli–Prabhadevi, with vacancy levels dropping to around 8% and rentals firming up. Pune, meanwhile, remained a technology driven hub, with Kharadi and Hadapsar accounting for two-thirds of demand, though vacancy ticked up slightly due to occupier churn. What is happening is clear: both cities are attracting strong occupier interest. Why it matters is because Mumbai’s resilience signals investor confidence, while Pune’s tech led growth shows the city’s evolving role as a cost competitive talent magnet. Where leasing is concentrated prime hubs in Mumbai and integrated ecosystems in Pune shapes the future of development. Who is driving demand? BFSI and multinational firms in Mumbai, technology occupiers in Pune. When—Q4 2025 marked a turning point, with both cities showing momentum despite limited new supply. How developers respond through integrated, flexible, and mixed-use projects will define 2026.
Mumbai: Prime Hubs Lead Leasing Momentum
Mumbai’s office market ended 2025 with strong leasing activity concentrated in Andheri East and Worli–Prabhadevi, which together accounted for nearly 60% of Grade A space uptake. Conventional leasing stood at 1.2 million sq ft, led by technology and BFSI occupiers with a combined 40% share. With relatively lower new supply, vacancy dropped to ~8% and rentals firmed up significantly.
Key deals included Sporta Technologies leasing 169,300 sq. ft at The Ascentia in Worli/Prabhadevi, Redbrick taking 49,900 sq. ft at Mindspace Navi Mumbai, and Aon Risk Insurance Brokers India occupying 47,500 sq. ft at One International Centre, Worli.
Bhavik Bhandari, Chief Business Officer, Ashwin Sheth Group, explained: “Mumbai’s office market continues to show resilience, especially in prime micro-markets like Worli and Andheri. The fall in vacancy and firming rentals reflect strong occupier confidence. For developers, this is a signal to focus on quality supply in well connected hubs, where demand remains sticky despite broader economic cycles.”
He added that strong leasing trends are influencing residential demand: “Areas like Worli and Prabhadevi are evolving into live work nodes due to enhanced infrastructure like Metro Line 3. Andheri East’s transformation from a commuter suburb to a commercial hub has boosted residential interest among young professionals. Overall, the market emphasizes livability linked to opportunity, with connectivity and employment density shaping buyer decisions.”
Pune: Tech Occupiers Drive Integrated Ecosystems
Pune’s office market also saw robust leasing, with Kharadi and Hadapsar driving more than two thirds of demand. Conventional leasing stood at 1.1 million sq ft, with technology occupiers accounting for more than half of uptake. Major deals included ICE Mortgage Technology leasing 190,000 sq ft at Magarpatta Cybercity, Gallagher taking 153,000 sq ft at Bluegrass Business Park, and Synechron occupying 70,000 sq ft at EON Free Zone Phase 2.
Despite limited new supply, vacancy levels rose slightly by 20 basis points due to occupier churn.
Rohit Gera, Managing Director, Gera Developments, noted: “The greater Kharadi and Hadapsar areas have transformed into integrated urban ecosystems with self-contained work, home, and social infrastructure. This leads to an upward spiral—more offices, more homes, shorter commutes. We expect this trend to continue with housing flourishing beyond Kharadi into nearby areas in 2026.”
On technology occupiers shaping demand, he added: “Technology occupiers are redefining workplace expectations, with flexibility, talent proximity, and quality of life becoming key decision factors. This is accelerating demand for integrated work live environments where offices are seamlessly supported by housing, retail, and wellness infrastructure.”
And on vacancy resilience: “To navigate short term churn while maintaining long term resilience, developers need to focus on adaptability and relevance—flexible floor plates, future ready infrastructure, sustainable buildings, and mixed-use developments that support employee wellbeing and operational efficiency.”
Two Cities, Two Models
Colliers’ report shows how Mumbai and Pune are charting distinct paths. Mumbai’s vacancy decline and rental growth highlight its position as a mature, supply constrained market where prime hubs dominate. Pune, meanwhile, remains a technology driven market with concentrated demand but faces challenges from churn and exits.
For developers, the opportunity lies in tailoring strategies: in Mumbai, focusing on mixed use and integrated projects in prime hubs; in Pune, building adaptable, ecosystem driven developments that align with tech occupier needs. Together, the two cities reflect the evolving dynamics of India’s office sector—Mumbai as a resilient, high value hub, and Pune as a cost competitive, talent led growth engine.
