Mumbai's Office Space Costs Surge by 8% in Q4 2025: Leading Global Cities

Mumbai recorded an eight per cent quarter-on-quarter rise in net effective all-in occupier costs between Q3 and Q4 2025, the highest increase among the 40 global cities tracked in Savills India's study. The growth was driven by tight supply conditions and steady occupier demand for top-tier grade-A office space.

Delhi also witnessed an increase in prime office costs during the quarter, reflecting sustained occupier interest in best-in-class office buildings.

Globally, net effective prime office costs rose by an average of 1.1% in Q4 2025, with 23 of the 40 cities monitored recording increases. Over the full year, global prime office costs increased by 5.1%, with India’s performance, particularly Mumbai, exceeding the global quarterly average.

Savills India, a leading real estate consulting firm, has been closely monitoring office space costs across major cities. The firm attributes the significant rise in Mumbai to a combination of factors, including limited availability of new office developments and a robust demand from corporate occupiers. This trend is expected to continue in the coming quarters, with further increases likely as the market remains tight.

The real estate sector in Mumbai has been resilient, despite economic challenges. Companies across various sectors, including finance, technology, and services, continue to expand their operations in the city, driving up the demand for premium office spaces. This surge in costs underscores the importance of strategic planning for businesses looking to establish or expand their presence in Mumbai.

In Delhi, the rise in prime office costs is also significant, though slightly lower than Mumbai. The city has seen a steady influx of corporate tenants, particularly in the tech and IT sectors, which has contributed to the increase in office space costs. The availability of well-equipped, grade-A office buildings continues to attract businesses looking for modern, efficient workspaces.

The global trend of increasing office space costs is a reflection of the broader economic recovery and business expansion. Cities like New York, London, and Singapore have also seen notable increases, but Mumbai's 8% rise stands out as one of the most significant. This highlights the city's position as a key business hub, not just in India but on the global stage.

For businesses operating in or planning to enter the Mumbai market, the rising costs present both challenges and opportunities. While higher costs can strain budgets, they also indicate a healthy and growing market. Companies that can secure prime office spaces now are likely to benefit from the city's economic momentum and future growth potential.

Savills India's study provides valuable insights for real estate investors, developers, and corporate occupiers. By tracking and analyzing market trends, the firm helps stakeholders make informed decisions and navigate the complex real estate landscape. As the market continues to evolve, staying ahead of these trends will be crucial for success in Mumbai's competitive office space market.

In conclusion, the 8% rise in office space costs in Mumbai during Q4 2025 is a clear indicator of the city's strong economic performance and its status as a global business hub. While the increase presents challenges, it also highlights the opportunities for businesses and investors looking to capitalize on Mumbai's growth trajectory.