Mumbai office rentals hold steady on supply growth
Equitable growth in office spaces supply across India’s commercial capital, Mumbai Metropolitan Region, over the last few years has kept average office lease rentals steady in an affordable band of 115-180 per sq ft a month barring few exceptions such as Bandra-Kurla Complex. The pre-eminence of Nariman Point or any specific business districts have waned. Offices have come up almost everywhere across the city as corporations continue to move towards more accessible and cost-efficient locations in addition to better quality of properties. The city’s Central Business District Nariman Point’s share in the city’s total office stock has declined over the last decade to 11% as from 30%. Lately, even BKC’s share declined to 10% from 13% as other parts of the city have gradually seen more offices supply and absorption, data from Knight Frank India showed. “Growth vectors in MMR, over the last decade, have been pointing towards north given the availability of land and affordable housing. As talent started moving northwards, companies also followed suit to enhance employee productivity and to enjoy lower cost arbitrage,” said Viral Desai, national director – office transactions, Knight Frank India.
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