MOHALI OFFICE MARKET — Q2 2026 OVERVIEW
Executive Summary
Grade-A office absorption in Mohali rose 18% year-on-year in Q2 2026, driven by sustained IT/ITES expansion in Sector 66 and Phase 8 Industrial Area. Vacancy rates have tightened to 8.4%, the lowest recorded in five years, creating upward pressure on rental values.
Key Metrics
Gross absorption: 4.2 lakh sq ft (Q2 2026)
Net absorption: 3.1 lakh sq ft
Grade-A vacancy: 8.4% (down from 11.2% in Q2 2025)
Average rent range: ₹65–₹90/sq ft/month
New supply expected H2 2026: 6.8 lakh sq ft
Sector Performance
Sector 66–67 Corridor: Continues to command premium rents of ₹80–90/sq ft. Bestech Business Towers, Wave Estate, and Solitaire Business Hub remain near full occupancy. New completions in this micro-market are being pre-leased at the construction stage.
Phase 8 Industrial Area: Rising as a cost-effective alternative for mid-size IT occupiers. Rents range ₹55–70/sq ft. Several standalone buildings are available for full-floor or whole-building lease to corporate tenants.
Aerocity and New Chandigarh: Emerging supply centres. Quality varies significantly; infrastructure maturity is 3–5 years behind Sector 66. Rents are competitive at ₹45–60/sq ft but due diligence on connectivity is essential.
Demand Drivers
The primary demand driver remains IT/ITES, accounting for 58% of Q2 absorption. BFSI and healthcare corporates contributed a combined 22%. GCCs (Global Capability Centres) established a Tricity presence for the first time in meaningful volume — a structural shift that will support demand through 2028.
Outlook
We project a further 8–12% rental escalation in Sector 66 Grade-A stock through December 2026. Supply additions are pre-absorbed. Investors holding pre-leased Sector 66 assets are positioned for both income growth and capital appreciation.
The investment case for Mohali office remains compelling: yields of 7–9% gross on Grade-A pre-leased assets, with tenants carrying strong covenant quality.
