Mumbai’s Western Suburbs See Highest Increase In Office Rentals, CBD Highest Decline

Ashutosh Limaye

The gross average rents in Mumbai (including Thane and Navi Mumbai) rose by 1.3% y-o-y, as of 3Q16. In Mumbai, the western suburbs’ micro-market registered the highest growth in rentals at 2.1% followed by the eastern suburbs at 1.7%, SBD BKC at 1.5%, SBD Central at 1.4% and SBD North at 1.2%. CBD rents continued their downward journey and declined by 1.6%. Outside Mumbai city, rentals rose in Thane by 2.5% and Navi Mumbai by 0.7%,

Showing faith in India’s economic growth, corporate occupiers have been in expansionary mode. However, there is a lack of relevant supply at ideal locations in Mumbai. Due to this, some companies wanting to expand are taking up relevant supply at ideal locations in both the eastern and western suburbs. Not too long ago, Bandra Kurla Complex (now the de-facto CBD of the city) and the other SBDs had first seen such a movement of occupiers from the CBD.

The suburbs have been cheaper, rent-wise, than the established office districts. Many back offices have preferred these locations over the years, due to their cost arbitrage. Interestingly, a foreign pharma company had recently carried out a large transaction in a grade-A building in the western suburbs. And it was not just a move to set up their back office here but their India headquarters.

Suburbs could see more such developments in the future. With big infrastructure projects like the coastal road and several phases of metro rail in the pipeline; suburbs show promise of better connectivity in the years to come. They have another advantage of being closer to residential areas. We could see more corporate occupiers moving in if relevant supply comes up here.

Rents may continue to increase in these micro-markets and, especially so, after connectivity has improved. While the western suburbs enjoy close proximity to the airport, the eastern suburbs enjoy proximity to Thane and Navi Mumbai. CBD, on the other hand, will continue to see further correction in rents. The city’s CBD has been losing its sheen over the past five to six years. As this micro-market has a limited supply of quality office spaces, corporate occupiers have been moving to SBDs.

Despite the highest increase in rentals recorded in Thane, the micro-market continues to offer very affordable rentals. Along with Navi Mumbai, which is the most affordable micro-market in the Mumbai metropolitan region with grade-A office space availability, Thane continues to be the preferred destination for IT/ ITeS players and back office operations of banking, financial services and insurance (BFSI) players as cheaper rentals are an important business priority for them.

Business process outsourcing and knowledge process outsourcing centres also dominate these two micro-markets, which may see further appreciation in their respective rentals in the future, until they become non-feasible for the current occupier profile. If the state government improves connectivity and takes up more reforms, however, additional land parcels in the peripheral areas would open up for residential development and existing office districts could then see further expansion.

(Ashutosh Limaye, National Director – Research, JLL India)


Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of NDTV and NDTV does not assume any responsibility or liability for the same.

2,283 thoughts on “Mumbai’s Western Suburbs See Highest Increase In Office Rentals, CBD Highest Decline

  1. I and also my buddies have already been viewing the best thoughts from your web site and suddenly developed a horrible suspicion I had not expressed respect to the blog owner for those techniques. All the people had been so warmed to learn them and already have sincerely been taking advantage of these things. Appreciation for getting indeed considerate as well as for considering such remarkable areas millions of individuals are really needing to be aware of. Our own sincere apologies for not saying thanks to earlier.

  2. Wonderful items from you, man. I have be aware your stuff prior to and you’re just too wonderful. I really like what you’ve acquired here, really like what you are stating and the best way wherein you assert it. You are making it enjoyable and you still care for to keep it sensible. I can not wait to read much more from you. This is really a terrific site.

  3. What i don’t realize is in fact how you’re now not really a lot more smartly-favored than you may be right now. You are so intelligent. You understand thus considerably in terms of this subject, made me personally consider it from so many numerous angles. Its like men and women aren’t involved except it is one thing to do with Lady gaga! Your individual stuffs outstanding. At all times deal with it up!

  4. I precisely wanted to say thanks once again. I’m not certain the things I would’ve taken care of without the entire opinions contributed by you about my industry. It had been a real horrifying dilemma in my circumstances, but looking at the specialized way you resolved that made me to cry over happiness. I’m thankful for your advice and in addition believe you are aware of an amazing job that you’re carrying out educating the others by way of your web blog. Probably you haven’t come across all of us.

  5. 5. Retain the services of shades toward label the packing containers alongside with its quantities. It is greater towards contain coloration coordination for each individual of the rooms inside your fresh residence. This is toward assist oneself and the removing support in the direction of comprehend the place in the direction of level the containers. Yourself can retain the services of purple for the study’s bed room, inexperienced for the kitchen area and consequently upon. Via performing as a result oneself can buy the containers out of the direction therefore the removing services can stage your home furnishings effectively.

  6. Howdy I am so grateful I found your webpage, I really found you by accident, while I was looking on Digg for something else, Regardless I am here now and would just like to say thanks for a fantastic post and a all round interesting blog (I also love the theme/design), I don’t have time to go through it all at the minute but I have bookmarked it and also added your RSS feeds, so when I have time I will be back to read much more, Please do keep up the excellent work.

  7. In January matrix year, speck xvcfdjt flatten ill. It’s okay, condign a peaceable viagra without doctor prescription, which passed in five days. But the temperature in the twinkling of an eye returned beside the end of the month: the thermometer showed 45. The youngster was urgently hospitalized with fever and convulsions. A infrequent hours later, three-year-old Yegor stopped breathing – he knock into a coma. With the inform appropriate of a ventilator and a tracheostomy, the doctors resumed the work of the lungs, but oxygen starvation struck the brain. The kid has out of the window the aggregate that he managed to learn in three years. The diagnosis is posthypoxic encyphalopathy.

  8. Our doctor consideration that Dad was conceivably honest superiority than Mom in this situation. Stricter, more persistent, when one pleases not non-acceptance once again when you want to select bad viagra. Spring, I wanted to around my missus a break.
    I spent a inconsequential over a month in the all-out take care of piece and two and a half months in the bone marrow move unit. There I became a provider in compensation my son. I’m glad I was accomplished to alleviate him. I was the only human beings in both departments, but my parents were already there. That is, a handcuff in the repulse with a child is no longer a rarity.

  9. We are currently on maintenance chemotherapy at on, but every Thursday we enrol to the bureau in requital for tests and testing. A couple of days ago they took a sternal puncture. We were in the thwart instead of some duration, as we were diagnosed with Lyme murrain – we were attractive intravenous viagra generic and we are tranquil enchanting them.

  10. We in person met with the neurosurgeon of the Center. Rudnev, who underwent an internship at vardenafil on a ventriculoscope and has since dreamed of such an apparatus. Using it, you can not solely help children with IVH – you can management of meningitis, encephalitis, ventriculitis, handling a brain biopsy, and all this with slightest surgical intervention: a young gash of 3 cm. United of the clinics of the in widely conducts 33 types of operations using a ventriculoscopy.

  11. What supplements lend a hand with fertility clomiphene 50mg? Opt for nutritional supplements. On men, the most high-ranking supplemental nutrients to enhance fertility are vitamin C and zinc. Clomid (2,000 to 6,000 milligrams routine) helps prevent sperm from clumping or sticking together, thus improving the chances in support of fertility.