JP Morgan’s massive Powai office lease dominated Mumbai’s real estate market in early 2026

One deal shaped Mumbai’s commercial real estate market more than any other in the first half of 2026: JP Morgan’s 2.2 million square foot office lease in Powai, which accounted for nearly 31% of the city’s total leasing activity during the period and significantly influenced overall market performance.

According to Knight Frank India’s “India Real Estate: Residential and Office (Jan-June 2026)” report, released Thursday, Mumbai recorded gross office absorption of 7.3 million square feet in H1 2026, a 33% year-on-year increase. The market continued to be driven by large institutional transactions, a diversified occupier base, and changing leasing patterns across key office corridors.

The commercial surge came alongside a steadily broadening residential market. Housing sales in Mumbai stood at 47,355 units in H1 2026, broadly in line with the corresponding period last year, while new launches increased 8% year-on-year to 49,161 units. Despite the higher supply, unsold inventory declined 4% year-on-year, which the report said indicated continued absorption across the market.

“Higher launches, declining inventory and continued price appreciation point to a market where supply additions have largely kept pace with end-user demand,” the report noted. Average residential prices in the Mumbai Metropolitan Region were a shade below Rs 15,000 per square foot, a 4% increase from the previous year.