A guide to Mumbai’s commercial real estate sector
Over the last few years, the number of HNI investors and corporates who are seriously looking to invest into Indian office spaces has increased manifold. Mumbai continues to hold its own as India's number one office space investment destination, with companies from all over the world zeroing in on the financial capital. As India’s only true financial hub, investing in commercial property in Mumbai remains favourable as the city consistently proves its long-term stability and fundamentals.
Mumbai continues to present HNI and corporate investors with myriad growth opportunities in office properties. However, the multitude of options also gives many enthusiastic investors heartburn - where on Mumbai's vast map are the low-risk / high returns locations? Obviously, the thumb rule for investing in commercial office spaces in Mumbai lies in the market knowledge.
Here are some of the locations where investing in commercial property in Mumbai can make for a wise investment choice:
The Central Business District (CBD) which includes the micro-markets of Nariman Point, Fort, Ballard Estate, Cuffe Parade and Churchgate
The Secondary Business District (SBD) which includes the micro-markets of Worli, Lower Parel, Prabhadevi, Bandra Kurla Complex (BKC) and Kalina
The Peripheral Business Districts of Andheri-Jogeshwari, Malad-Goregaon, Powai-LBS Marg and Thane-Navi Mumbai.
Over the last decade, BKC has grown tremendously as a premium commercial, financial and residential hub. It is bound by Kurla in the east, Bandra in the west and Santacruz to its north. Bandra and Kurla are major railway stations on the Western, Harbour and Central lines of the Mumbai suburban railway. Office spaces in Mumbai’s BKC area are also well-connected to the Western Express Highway, the Eastern Express Highway and are close to both, the domestic and international airports.
Inspire BKC offers luxurious commercial spaces by Adani Realty which integrate the finest design aesthetics with cutting-edge construction technology. From plush entrance lobbies to flexible office spaces, daycare facilities to modern dining options, pocket terraces to ample car parking space; Inspire BKC aims to match the global standards for workspaces.
Andheri East and West are other popular choices for the commercial property segment in Mumbai. The social infrastructural boost has helped the region transform from an industrial area into a sought-after commercial destination. The presence of the metro rail and its proximity to the Western & Eastern Express Highways allows for easy commuting. Moreover, Andheri is very close to the international airport and boasts of hospitals, educational institutes, multiplexes, five-star hotels and numerous restaurants. Inspire Hub in Andheri West is yet another hotspot that provides lavish commercial spaces by Adani Realty. These office spaces are designed with world-class standards in mind. It features freely adaptable suites, high-tech security, dedicated driveways, a palatial café and waiting lounge, and a contemporary elevator lobby.
Here are some guidelines to consider while investing in commercial property in Mumbai-
Study the quality of the building, location, demand & supply dynamics, and yield compression possibility.
Ensure that the amenities in the project match your business needs.
Check the developer’s credentials, the potential for infrastructure development, access to public transport and quality of property management.
Investors looking at income-producing office assets should look at the break-up of cash flows, the vacancy factor, expenses such as maintenance, property tax and building insurance, lease term, lock-in period and expiry dates, long-term capital appreciation potential and refurbishment, refinancing and re-positioning potential.
For a commercial space leased or rented for retail or related services, visitor footfall is the biggest criterion. Ensure such property is located near popular hangouts such as cinema multiplexes, restaurants or commercial hubs.