MUMBAI TO BECOME AN UPSURGE IN COMMERCIAL SPACE

MUMBAI TO BECOME AN UPSURGE IN COMMERCIAL SPACE

Commercial Real Estate in Mumbai is considered to be among India`s best places to invest even at times of global economic uncertainty as it has proved to provide long-term stability for investors. In general commercial assets of India have a lot to put forward for any business, especially in Mumbai, where the chances of growth is relatively much higher than that of other states in India. Right from real estate, stock market, Information Technology, Hotel Industry to entrepreneurship, Mumbai has the maximum number of employee growth.

Over the past few years commercial real estate market in Mumbai has extensively altered. We have seen with the materialization of new Central Business Districts (CBD) like Bandra Kurla Complex, Lower Parel – Worli, Andheri West, Malad West, Andheri East, Powai, Goregaon East and now Borivali East.

Better connectivity and infrastructure have helped in the overall development of Navi Mumbai and Thane which have their independent CBDs as it makes it easier for people residing there to commute rather than travelling all the way to south Mumbai for work. Being primarily residential areas Andheri, Powai and similar areas are lucrative employee catchment zones since being able to work close to one`s residence is always an attractive proposition.

Moving to areas like Powai, Andheri, Malad, makes commuting easier. Clients of these corporates have moved to the northern part, making it a feasible option. The availability of easy transportation by road and rail, has made commuting easier in the western and central suburbs of the city. Important government offices and major corporate houses and bank offices, are also shifting their base to the business districts in Andheri-Jogeshwari, Malad-Goregaon, Powai-LBS Marg and Thane-Navi Mumbai. Proximity to such offices will help in conducting business better. Due to all these reasons, buyers are targeting office spaces in the business districts in western and central suburbs.

Research report has stated that there is good opportunity for builders in Mumbai in 2015-2016 as the market shows all likelihood to make available 11 million sq ft of space for office purposes. This brings good news to the owners of commercial property too as this will stabilize the rental prices.

Reports further stated that total business in Mumbai of office space including sales and lease from January to March this year has been 1.04 million square feet as compared to 0.88 million square feet in the corresponding period in 2011. Banking, financial services and insurance (BFSI) sector has been the main sector of the office-space market in Mumbai.

Mumbai`s office buildings are continuously evolving to keep up with sister cities. Transformation is driven by both, aesthetics (building quality) and innovation (new work practices). Considering aesthetics – changing building standards means that even buildings dated 10 years ago, are well along the cycle to obsolescence. Clearly, multinationals are insisting on global standards for Mumbai – organized in business districts, with high-quality specifications as well as excellent safety and security systems and buildings with higher degree of resiliency and sustainability.

Indian real estate sector has greater implication with the liberalization of the economy, as greater than ever business prospect and labor migration have led to greater demand for commercial space in Mumbai.

 

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