Mumbai is the most vibrant office market in the country and it leads the economic activity in every business sector. Mumbai is the base of corporate headquarters of many multi-national national industries and companies from sectors like Banking, financial service, Insurance (BFSI), IT/ITeS and many more. Presence of numerous multinationals, availability of talent pool, international and national connectivity etc have created the most favorable business environment in the city. Mumbai has been the capital for numerous business sectors, especially to the commercial real estate it has been the most vital ground with buyers and investors perspective.Presence of many prominent commercial giants has aided the real estate market of Mumbai, especially the commercial real estate market. Mumbai’s total office space stock is 101.2 million sq ft as of now out of which about 77.9 million sq ft office space is occupied while the remaining is vacant. Hence the vacancy level at the current situation is on 23 per cent. The vacancy level of Mumbai’s office space has significantly increased since 2009 as every year a huge amount of virgin supply has emerged into the market. Mumbai commercial market lost its sheen in the third quarter of 2013 with a drop of 11 per cent in overall real estate while absorption volumes dropped by 38 per cent compared to the previous quarter of the year. Total transaction activities witnessed in the third quarter of the year were approximately contributed to 1.58 million sq ft. Although market sentiments were unpleasing throughout the year, but Mumbai’s commercial real estate has managed to stand steady in 2013. The absorption of office spaces till September was observed to be about 5.4 million sq ft in the current year.Industry wise impact on Mumbai real estateBFSI sector was observed to be the driving factor of the commercial real estate of Mumbai, but during the third quarter of the year it has been showing sluggish results. The absorption level by BFSI sector certainly remained constant at about 26 per cent compared to the preceding year’s absorption amount. Aegon Religare, India Infoline and HDFC were among the most active BFSI companies in the Mumbai during the third quarter. After BFSI sector, other sectors like media, telecom, consulting and logistics have risen constantly over the years along with growth of BFSI and IT/ITeS sectors in the city. No significant absorption was observed from media and advertising sectors, only exception was the PVR Pictures leasing of 12,000 sq ft space in Lotus Corporate Park at Jogeshwari East. IT/ITeS sector witnessed significant growth of 31 per cent in absorption compared to the previous year’s period. IT/ITeS companies were mostly considering low priced large format office spaces for consolidation and expansions which dominated the office absorption during the third quarter of the 2013.Commercial real estate of Mumbai is divided into several sub markets according to the demographics of the city which are well known as business districts.SBD west and the peripheral business districts contributed for about 61 per cent of the total transacted space in the third quarter of 2013.SBD (Secondary business Districts)
- SBD took share of third highest transactions in third quarter which included transaction of approximately 0.51 million sq ft of office space.
- The major transactions in this district occurred due to consolidation of giants of manufacturing and other service sectors like Ericsson, Kone Corporation etc.
- 0.1 million sq ft of lease by Glenmark house was the largest deal in third quarter of the year
- Andheri East and Goregaon East accounted for a vital 90 per cent of the transaction in SBD
- Although significant absorptions, SBD remained high on vacancy level with 27 per cent due to large supply in the past few quarters.
PBD (Peripheral Business Districts)
- Total share by PBD in the overall commercial real estate of the Mumbai was accounted nearly at 0.44 million sq ft.
- The market transaction in 2012 was at 10 per cent while in the current year they were accumulated to 29 per cent.
- PBD office market was dominated by the IT/ITeS sectors with about 96 per cent of the total transacted office space.
- About 66 per cent of the total transacted space was observed in IT/ITeS sector.
- The PBD market’s vacancy levels were the highest in the city with 36 per cent vacancy.
CBD (Central Business Districts)
- Central Mumbai observed weak transactions in the third quarter of the year.
- CBD and Off-CBD observed marginal transaction activity along with decreasing rental value
- The major office space market kept shifting towards BKC and Lower Parel which have been emerged as the new CBD in Mumbai.
- Vacancy level of CBD sustained at abo0ut 15 per cent due controlled supply in the sub market.
The overall vacancy level of Mumbai has shown the lowered trend during the period of January to September, albeit many multinationals and software companies showed positive sentiments throughout the year. Despite the fact that absorption and demand for office space remained decent in the year, rental values had no respite in the past two years in Mumbai. Rental values have fallen for the past two years and will continue to lower further in the current fiscal year.When compared to the previous year’s January to September period with current years same period the real estate market both periods observed almost same transactional activities but in further future year 2013 is proposed to cash on little high on transactions in office spaces with about 6.2 million sq ft. The inflation and economic slowdown will definitely affect the commercial real estate of Mumbai but recovering global economic scenario will bring some respite for Mumbai’s commercial real estate. IT/ITeS sector and BFSI sector will dominate the office space transaction in the near future with highest shres on the commercial real estate pie of Mumbai.Rental values are proposed to remain strong in the most of the business districts in Mumbai. The proposed metro projects definitely bring a respite in the adjacent sub market as it will boost the commercial real estate demand in areas along the Metro. Bandra Kurla Complex and Lower Parel areas will for sure attract occupiers in the future but rest of the CBD will lose its share in the future transactions.займ на карту без отказов круглосуточновзять кредит онлайн