In its Global Market Perspective report for Q315, Jones Lang LaSalle (JLL) notes that the notional capital values of prime office buildings in Mumbai have fallen by 3.3% over the last year. The prime yield is 10.0%, or a 1.95% premium to the yield on 10-year government bonds. Over the last year, rents have fallen by 4.7% and net absorption (on a rolling one year basis) has been 8.0%. The vacancy rate is currently 19.8%. Taking into account completions of new projects prior to the end of 2016, the supply pipeline is 13.0% of current stock. JLL considers that conditions will likely favour neither tenants nor landlords in 2016.

Source : November 2015/JLL/Mumbai/OFF