BKC in Mumbai Offers Good Rental Growth
The Bandra Kurla Complex (BKC) is a well-planned commercial area in the Mumbai suburbs and the first in the series of growth centres near South Mumbai. Situated between the western suburbs of Bandra and Kurla, the business centre is in proximity of Southern Mumbai’s localities as well. Due to the good location and commercial growth, the area surrounding the business centre is witnessing a good rental growth.
Location and accessibility
The complex is situated on the northern side of Mahim Creek with Bandra to its west, Kurla to its east and Santacruz to its north. Some of the other close by areas include Tilak Nagar, Sion and Vile Parle. The area is very well connected through road, rail and air. It is close to the Bandra Terminus on the western line and Lokmanya Tilak Terminus on the eastern line of the Mumbai suburban railway network. One of the lines of the second phase of Mumbai metro will have its station in BKC. Apart from rail, BKC is close to the Western Express Highway (WEH) which can be accessed through the BKC road and Kalanagar Junction. The Mumbai International Airport is just about 10 km away from the business district.
Infrastructure and amenities
The MMRDA has been focusing on developing the ‘E’ block of BKC for a while. It has a number of commercial establishments that include Asian Heart Institute, Citibank, ICICI Bank, NABARD Head Office, Trident Hotel, ESSAR Group, Dhirubhai Ambani International School and the National Stock Exchange. BKC is also home to the Mumbai Cricket Association’s cricket ground. There is a park called ‘CITY PARK’ and an Urban Plaza which have been developed in the ‘E’ block.
Apart from the ‘E’ block, the MMRDA is also focused on developing and expanding the adjacent ‘G’ block. Here, an International Finance and Business Center (IFBC) is set to come up. The goal of IFBC is to create office spaces in this area with international standards and provide high quality amenities to the employees along with safe environment, accessibility and entertainment.
Real estate trends
BKC is one of the fastest growing central business districts (CBD) in Mumbai. Owing to its commercial growth and connectivity, it has become one of the most sought after locations for people working in Mumbai. Moreover, there is a migration of people working in South Mumbai towards BKC due to the saturation levels of business districts such as Churhcgate and Nariman Point. As such, the area’s surroundings are witnessing a good residential real estate growth. There was a small dip in the real estate sector for a while around the area. However, it is slowly growing again since the last few quarters. While there are people who prefer to buy property near the business district, the area attracts more migrant work force that prefers to live in rental accommodation. As such, the rentals have been witnessing a good growth in the area.
There are apartments with various configurations available in the area. Most of them are 1 and 2BHK apartments. The approximate monthly rental of a 1BHK apartment is in the range of Rs 15,000-25,000, while that of a 2BHK apartment is between Rs 25,000-40,000. The rental values go down a bit as one moves further away from BKC.
The rental prices have seen highs and lows in the last 12 months. It was at its highest at Rs 50 per sq. ft. till November of 2013, but fell to about Rs 35 per sq. ft. till the first quarter of 2014. The prices have now improved to about Rs 40 per sq. ft. in the area.
With the improved economy and growth in the area, there are good growth prospects in rental properties. Hence, one may look at investing here for a rental property.
