Navi Mumbai saw the highest increase in office rentals among Mumbai business districts in the second quarter of 2017, said a report from Jones Lang La Salle, a real estate consultancy firm. While the gross average rental in Mumbai rose 0.5 per cent from a year ago, the jump in Navi Mumbai was 8 per cent, it said. That said, this district had one of the lowest gross rents of Rs 59 per square foot per month.
Apart from the low rent, Navi Mumbai has an established IT and BFSI-backend corridor with good connectivity to both Mumbai and Pune. Offices located in Navi Mumbai offer their employees an additional perk of ‘walk-to-work’, the report said. Among other business districts, rents at Bandra Kurla Complex increased by 1 per cent as did those at Lower Parel and Elphinstone Road, the report said.
However, office rentals declined by as much as 4 per cent in the southern tip of Mumbai, thanks mainly to limited supply of office space with modern infrastructure and amenities. “Due to this reason, many existing occupiers wanting to refurbish their offices or expand in the same location have been facing severe limitations. Aged buildings and heritage regulations further hamper many occupiers’ refurbishment efforts,” the report said. Office rentals in this district were still high at Rs 202 per square feet per month, it said.
“Some other occupiers looking to expand within their most preferred location in the city may struggle with lack of relevant supply and hence, move to Navi Mumbai or the suburbs. Suburbs also prove to be attractive to most employees living in or around their office locations. Many back offices have preferred these locations over the years for these very reasons,” the report added.