Predictions for office space markets in Mumbai this year

Office space in Mumbai has always been hugely attractive to innumerable high net worth investors, companies, corporates, multinationals, governmental organizations, start-ups and the like. Mumbai is after all the financial and commercial capital of the country and is known for its cutting edge business infrastructure and commercial skyscrapers. The office space market has always represented a hot and thriving investment proposition for individuals over several years. However, the property market in Maximum City has seen a little slump for a prolonged period of time which has also impacted its commercial markets to a large extent. The major problem lies in the lack of actual transactions in terms of office leasing even though demand levels continue to be supremely high in Mumbai. This is one situation that has confounded property experts though the situation is slated to improve immensely in the year 2015.

Firstly, office space in Mumbai will get a boost this year owing to the completion of several infrastructural and government projects. Areas like Ghatkopar and Andheri will benefit immensely in the commercial market space owing to developments like the Andheri-Versova-Ghatkopar corridor while the metro railway network extensions are also likely to fuel further growth. Development of roads, industrial zones and other projects are also set to give commercial leasing markets in Mumbai a much needed boost this year. Experts anticipate most of the growth to happen in Ghatkopar and Andheri where several companies are already looking for office space. Leasing activity will not be witnessed in huge volumes for quite some time though. It will only pick up in the last quarter of the year as per several market experts and observers. Rajhans Realty has rolled out red carpet for the next dimension in commercial spaces.

Corporate interest related to office space in Mumbai will also go up in case of major micro markets like Lower Parel, Bandra-Kurla Complex and Andheri among other destinations. This will majorly occur on account of the high supply volumes in these areas. Rental incomes should remain stable for investors in most of these micro markets and should go up in emerging business areas like Andheri-Jogeshwari and Ghatkopar where capital values are going up largely owing to rapid urbanization and development. Cuffe Parade, Nariman Point and Fort will take some time to pick up in terms of office leasing owing to limited supply and high rental amounts charged for properties here. There are still reasonable vacancy numbers in these iconic business areas.

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