The existing eight million sq ft office space in Bandra-Kurla Complex is expected to grow exponentially by another 30 per cent this year.
According to a report by Jones Lang LaSalle (JLL) India,in 2012 an additional 2.5 million sq ft will be added to the present stock with the completion of significant projects such as Wadhwa developers The Capital,TCG real estates First International Financial Centre (FIFC) Tower and TCG Finance Centres. Just last month,six of the 12 floors in the FIFC tower were snapped up by Citibank in a mega-deal that involved Rs 950 crore.
Ramesh Nair,JLL managing director (West),said while the Banking,Financial Services and Insurance (BFSI) sector has been hit in Europe and the United States due to the economic instability,in BKC the segment still continues to be one of the major absorbers of space with leasing and buying activity picking up during the last two quarters.
Already several banks and financial institutions have their office in BKC including IDBI,SBI,Oriental Bank of Commerce,SEBI,Dena Bank,PNB,ING,NSE,NABARD,ILFS,ICICI,UTI,Canara Bank and Bank of Baroda. The present vacancy level at BKC stands at 16 per cent. Over the last 24 months,it has become a landlord-favouring market. The change in sentiments have come earlier than expected and can be attributed to the large deals by Citibank,Deutsche Bank and First Rand Bank and also the lack of new quality supply in the market in 2013 and 2014, Nair said.
Over the next four years some of the major projects expected to be completed in the alternative business district of BKC include luxury hotels such as The Bellagio and MGM Grand,Reliance headquarters-cum-convention centre,Jet Godrej office project,Wadhwas C66,Kotaks headquarters and a luxury mall by Maker Group.