In its Global Market Perspective for 1Q16, Jones Lang LaSalle noted that commercial real estate investment volumes in Mumbai rose by 143% in 2015. Capital values for prime offices fell by 0.7%. Rental yields for prime offices were 9.9%, or 197 basis points above the yield on the relevant long-dated government bond. Rents for prime office space fell by 2.4%. Net absorption during 2015 was equal to 7.0% of existing stock. At the end of the year, the office vacancy rate was 19.7% and the supply pipeline for 2016-17 equated to 14.4% of existing stock.

Source : JLL/ January 2016/Mumbai/OFF