Thane: An emerging hub for premium office spaces

Demand for office spaces in India continues to grow, leading to falling vacancy levels. This has resulted in rentals in central business districts hitting a new high with land prices already at its peak, and thus giving rise to development of Secondary Business Districts (SBDs). Companies always scout for geographies where Grade A office spaces are available at competitive prices. Bandra Kurla Complex, Nariman Point, Lower Parel, Powai, Andheri East, today, command a premium over other micro-locations. The rising demand has also led to the emergence of new areas for commercial spaces. Thane is one such location that has commercial office spaces available at a much competitive price than at established central business districts. Already, some of the leading corporates like Tata Consultancy Services, Bayer, Raymond, etc have their office spaces in Thane. Going forward, more companies are likely to follow suit. As Mumbai and its population grows, people too have started moving north, thereby creating a need to establish newer business districts outside Greater Mumbai limits. Thane, being centrally located in the Mumbai Metropolitan Region has an advantage over other micro markets. Thane is well connected with all the areas of Mumbai, including western suburbs as well as those of Navi Mumbai, Bhiwandi, Kalyan and beyond. In the last decade, Thane has witnessed an upgrade in infrastructure and in the years to come there will be further upgraded. For example, work has commenced on a metro line to link Ghodbunder Road with South Mumbai. Likewise, soon, work will take off to connect Thane with Bhiwandi and Kalyan through a metro rail. Corporates purchasing office spaces at Thane are and will have first mover’s advantage as in the years to come as the commercial office price will only go north. On the other hand, the work-force who prefers to reside near their offices also manage to find a home for a reasonable rent. Already, several corporate houses have made Thane their address to come closer to the working population. Areas of Ghodbunder Road, Wagle Estate, Hiranandani Estate, Pokharan Road 2, etc. house are dotted with commercial spaces, thereby making it a secondary business district. In the next few years, it has a potential to become a hub of top quality office spaces.