The quarter also saw gross leasing of approximately 0.8 million sq. ft., reflecting sustained demand for high-quality office spaces across Mindspace’s portfolio.

Strong Leasing and High Occupancy

Mindspace REIT maintained a committed occupancy of around 93.8%, which increases to 94.6% on a like-to-like basis, excluding the newly acquired Q-City (now rebranded as The Square 110 Financial District).

The REIT achieved a re-leasing spread of about 28%, indicating robust rental growth, particularly in Hyderabad’s Madhapur micro market. Mindspace also signed its first deal in Madhapur at approximately ₹100 per sq. ft. per month, underscoring the potential for further rental upside.

“With a robust balance sheet, low leverage, and declining cost of debt, we remain well positioned to deploy capital in our development pipeline and capitalize on the strong demand for Grade-A office spaces,” said Ramesh Nair, CEO & MD, Mindspace REIT.

Financial Performance: Revenue, NOI, and Distribution Up

For Q2 FY26, Mindspace REIT’s:

• Revenue from operations stood at ₹778 crore (up 24.8% YoY).
• Net Operating Income (NOI) stood at ₹634 crore (up 25.8% YoY).
• Distribution to unitholders increased by 16.3% YoY to ₹355 crore.
• Distribution per unit (DPU) grew 13.2% YoY to ₹5.83 per unit.

On a half-yearly basis, NOI for H1 FY26 rose by 25% YoY to around ₹1,250 crore. The record date for Q2 distribution is November 8, 2025, and payments will be made on or before November 14, 2025. Since its listing, the REIT has cumulatively distributed about ₹5,950 crore, translating to approximately ₹99.9 per unit.

Portfolio Value and Balance Sheet Strength

As of September 30, 2025, Mindspace REIT’s Gross Asset Value (GAV) rose to ₹41,020 crore, up from ₹36,647 crore in March 2025. The Net Asset Value (NAV) per unit stood at ₹483.7.

The REIT maintained a conservative Loan-to-Value (LTV) ratio of about 24.2%, reflecting strong financial stability. Its cost of debt further reduced by 32 basis points sequentially to 7.52% per annum, aided by refinancing and recent rate cuts.

Mindspace raised ₹1,700 crore through Commercial Papers at an effective rate of 6.12%, and ₹1,150 crore through Non-Convertible Debentures (NCDs) at 7.12%.

Sustainability and Global Recognition

Mindspace REIT continued to earn international recognition for its sustainability initiatives. For the third consecutive year, it achieved a 5-star GRESB rating and was named ‘Global Listed Sector Leader – Office Development Benchmark’.

Its Development Benchmark scored 100/100, ranking 2nd among 18 peers in Asia, while the Standing Investment Benchmark scored 93/100, also ranking 2nd among 20 peers in Asia.

Development Pipeline and Outlook

Mindspace REIT is actively progressing on an under-construction pipeline of approximately 3.7 million sq. ft., positioning it to capture future demand in India’s premium office markets. With low leverage and stable occupancy, the REIT remains optimistic about sustained growth in rentals and portfolio expansion.

The company believes the strong absorption trends across Hyderabad and Navi Mumbai will continue to drive performance in the coming quarters.

Also Read: Data Benchmarking Institutions Launched to Empower Indian REIT Investors

The post Mindspace Business Parks REIT Reports 25.8% YoY NOI Growth in Q2 FY26; Leasing Momentum Remains Strong appeared first on Square Feat India.

By Varun Singh

A resurgence in residential demand has led to a 5% increase in prices across the top eight cities (Delhi-NCR, MMR, Kolkata, Pune, Hyderabad, Chennai, Bengaluru, and Ahmedabad) while registering a marginal decline in unsold inventory during Q2 2022. Residential prices, which have surpassed pre-pandemic levels, have been seeing an upward trend led by rising demand amidst rising prices of construction materials. Delhi-NCR saw the highest increase in residential prices at 10% YoY, followed by Ahmedabad and Hyderabad with 9% and 8% YoY increase respectively.

The sales momentum that started in the latter part of last year continued in Q2 2022 as well, led by pent-up demand and attractive pricing. Hence, despite rising prices and an increase in new launches in the last few quarters, unsold inventory saw a dip in the majority of the cities. Bengaluru witnessed the steepest decline of 21% YoY in its inventory overhang, led by higher sales.  Only Hyderabad, MMR and Ahmedabad saw an increase in unsold inventory, which was led by significant new launches. MMR still accounts for the highest share in unsold inventory at 36%, followed by 14% in Delhi- NCR and 13% in Pune.

Harsh Vardhan Patodia, President of CREDAI National stated, “The central bank continues to increase repo rates to offset the impact of inflation and banks are expected to increase loan interest rates  including that of home loans. As captured in this report, the housing prices have increased between 2 – 5% across cities, as materials and labour costs continue to remain high. We may see a marginal dip in demand due to increasing interest rates, but I am confident that the sales will continue to grow across segments from September, as we enter the festive season”.

 “Rising homeownership amongst millennials supported by higher disposable income and willingness to upgrade to larger spaces equipped with better amenities have sparked a sharp growth in housing demand in the last few quarters. Demand for self-sustained properties replete with best-in-class amenities has also been increasing post-pandemic. These have led to strong growth in housing sales in the last few quarters. Prices have also seen a 5% rise on YoY basis.

RBI has increased the repo rate amidst inflationary pressures and banks have already begun increasing the lending rates. However, the upcoming festive season is likely to keep the market sentiment high resulting in higher sales.” said Ramesh Nair, Chief Executive Officer | India & Managing Director, Market Development | Asia, Colliers.

“Price to remain range bound. With discounted EMI schemes, we see early signs of developers absorbing the impact of increasing interest rates. Sales volumes are likely to improve as we see growing new supply with festive offers, said Pankaj Kapoor, Managing Director, Liases Foras”.

Pan India residential prices Q2 2022–

Delhi-NCR saw the highest YoY change with a 10% surge in residential prices

Over the period of two years prices in Delhi-NCR have been rising. Delhi NCR saw the highest increase in prices across Pan India at 10% with an average carpet price of INR 7,434/ sq feet in Q2 2022. Golf course road saw the highest price rise of 21%YoY followed by Noida Expressway. The entire region’s inventory dropped 10% YoY in Q2 2022, as developers focused on offloading older projects. While overall unsold inventory is the lowest in three years, the majority of the unsold inventory is concentrated in Noida extension and Greater Noida, followed by Ghaziabad.

Unsold inventory in MMR rose 14% YoY, while prices remained range-bound

MMR, which accounts for the highest unsold inventory at 36% share, saw a 14% rise in unsold inventory in the last year. The rise in unsold inventory was led by significant new launches in the city. Housing prices largely remained range-bound, with a slight rise of 1% YoY. However, Western suburbs (beyond Dahisar) saw the highest increase in prices at 12% YoY. Unsold inventory in Central suburb extension accounts for 26%, majority share in the price range of INR 7,500-10,000 per sq ft. Bengaluru sees the steepest drop in unsold inventory at 21% YoY

Bengaluru witnessed a sharp decline in its unsold inventory during Q2 2022, dropping by 21% YoY. Inventory overhang in Bengaluru is continuously falling since the beginning of 2019 and is currently the lowest in the last three years. Almost the entire unsold inventory is in Bengaluru’s peripheral areas. This is owing to the large number of projects being launched in the peripheral areas of the city, due to promising prospects in these locations.

Also Read: Luxury Housing Clocks 12% Supply Share in Q2, Mumbai Leads

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