In the year 2008, due to the world economic slow down, a lot of developers converted their Commercial Real Estate to Residential Real Rate as the Commercial traction was very low and from there on wards the supply side got constrained due to an over supply of commercial properties in Mumbai. As of now in 2015, and over the period of last 6 years, there has been a decent amount of absorption in the commercial properties segment in the Mumbai Commercial Real Estate market. Although, the rates have not gone up, but a good traction is surely visible across Retail, IT, ITes and other Commercial allied offices.
The Commercial Real Estate market in Mumbai has significantly changed in over the past few years. We have seen with the emergence 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.
All these locations are now dotted with New Generation Glass Facade shiny buildings with Building Management Systems (BMS).
Central Mumbai beginning from Parel, Lower Parel, Mahalaxmi is where the New Age new developments have given the location an absolute new skyline. As per an estimate in these few locations there are more than 5000 apartments are coming up which range between prices of INR 5 Crores to INR 15 Crores.
Nariman Point, the yester-year location and in the early 80 and 90’s, was the most aspiring location of any businessman in India. The Location still is the most favorite amongst the old world businesses and families who are residing around the South Mumbai region.
Of course, with new generation business needs of large floor plates and more affordable rents, a lot of Businesses have moved to the Northern Part of the city till Borivali East
BKC has now emerged the New Center of Power for the Indian Entrepreneur and Banks like Bank of Baroda, Nabard, ICICI Bank, Citibank, Bank of India etc. now have their own buildings in BKC.
Andheri East, Goregaon East and the new buildings are the major attraction by most new companies looking for office spaces. The lease rent varies from Rs.75/- and goes upto Rs.150/- PSF for commercial office spaces.
Thane, Airoli and Navi Mumbai are favorites for Call Centres, IT and ITes and other businesses, which support large Industries.