Highest Rental Growth
Even as many world economic centers are reeling from the effect of global economic headwinds, Mumbai’s office market recorded the country’s highest rent growth during the H1 2017. The city ranks 16th on the world map, but if rental trends are to be believed then real estate in Mumbai is growing at a swifter pace than London, Hong Kong and Tokyo.
The average rent per sq. ft. for office space in Mumbai’s commercial high-rises has been recorded at $56 per sq. ft. (Rs. 3663 per sq. ft.) per annum during H1 2017. This is at par with the average rent in Melbourne and higher than that in Los Angeles. Experts attribute Mumbai’s rental growth to steady demand from corporates and limited supply due to space constraint. Rents in the upper floors of Mumbai’s skyscrapers have registered a growth of 1.8 percent, placing the city among the top six international rent appreciating markets in the world.
Most Expensive Business Districts
Mumbai’s commercial micro markets are outperforming many of their global counterparts and are ranked among the most expensive rental markets. According to research, Mumbai’s Bandra-Kurla Complex (BKC) and Nariman Point CBD (central business district) are ranked among world’s most expensive prime office markets. While the upscale BKC secured 16th rank, Nariman Point CBD was placed on the 30th spot.
The commercial real estate (CRE) market in Mumbai and the rest of the country has remained buoyant in the first half of the year and is expected to stay on course. With steady rentals, growing demand for Grade-A space, high absorption and global investor interest the future bodes well for CRE hubs such as Bangalore , Mumbai and Delhi.