Five Reasons to invest in Mumbai commercial real estate
- 30 March, 2024
Mumbai is India’s financial and entertainment capital, attracting companies and talent from across the country. The city’s expanding infrastructure and business-friendly environment make it one of the hottest markets for commercial real estate investment. Mumbai is a diverse market with varying options for occupiers/investors with entry rentals ranging from ~Rs 60/sq ft/month in pockets of Thane/Navi Mumbai to ~Rs 600/sq ft/month in core BKC assets. In 2024 and 2025, supply addition in Mumbai is constrained as only ~7.4 mn sf of fresh supply is expected to come online.
Here are 5 compelling reasons to invest in Mumbai Commercial real estate:
Great Real Estate Market
Mumbai metro area has over 250 million sqft of commercial stock as per JLL Research. Commercial real estate saw strong absorption of 13.7 million sqft in 2021, highest in a decade as per Cushman & Wakefield. Grade A office rents are Rs 130-150 per sqft per month in prime zones like BKC according to CBRE. With high demand from IT/ITES, BFSI and manufacturing sectors, Mumbai will see an additional 60 million sqft commercial offices in mumbai over next 3 years.
Seamless Connectivity & Accessibility
Mumbai has top-notch transport infrastructure that makes commuting seamless. Upcoming metro lines like Line 7, 2A and 9 will further bolster connectivity between commercial districts and suburbs. The 33.5 km coastal road will cut travel time between south Mumbai and western suburbs. Premium retail spaces and showrooms in areas like Lower Parel, Andheri and Malad have excellent road and metro access.
Great Employment & Business Opportunities
Mumbai houses headquarters of leading banks, financial institutions, media firms, industrial companies among India’s top employers. BKC has become the Wall Street of India with investment banks like Morgan Stanley, Deutsche Bank, Citibank etc. This creates a huge pool of office goers, entrepreneurs, HNIs – an attractive tenant base for commercial assets.
Easy Financing Options
Banks and NBFCs offer customized financing plans for commercial real estate buyers with longer repayment tenures and competitive interest rates starting at 8.5%. PE firms and real estate focused funds are also looking to invest in Grade A office assets and retail properties in prime Mumbai locations.
Cosmopolitan Vibe
Mumbai is India’s most cosmopolitan city with people from diverse cultures and backgrounds. This gives the city a vibrant, lively atmosphere that international companies look for when choosing India offices. For high-end retail, Mumbai offers an elite clientele base unmatched by any other city.
With strong demand drivers, infrastructure boost and availability of capital, Mumbai’s commercial real estate market offers tremendous growth potential. Investing in office spaces, shops and showrooms here can provide stable rental income and appreciation. Mumbai’s commercial realty is poised for long term gains for discerning investors.
