Rentals in Mumbai CBD fall by 4% in 2014-15

Q: Is there any reason behind Mumbai's poor show in rental market?

Rajiv,

30th June 2015

Rentals in Mumbai

real estate

mumbai real estate

central business district

rental markets in mumbai

bandra kurla complex

bkc

fall of rental markets in mumbai

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Replies (2)

Hi Lewin & Santosh,
It seems to me that the demand of residential properties moves towards suburbs far away from the city center, because of that the demands for rental markets for office spaces in CBD is falling. As part of that trend, Bandra Kurla Complex is now the effective for CBD of Mumbai.

Dharmaja Patel, Mumbai

30th June 2015

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Hi Dharmaja,
There might be some other reasons for the shift include. With improved connectivity in these areas, the SBDs are attractive to the occupiers, for example, the metro connectivity from Ghatkopar and Versova via Andheri-Chakala-Sakinaka has made the SBD (North) more attractive than neighboring SBDs.

Miraniyatin, Mumbai

30th June 2015

Hi Rajiv,
The fall in Mumbai CBD's rental could be due to short term influence. The difference in Mumbais office market is that the city has 17% vacancy, which is not healthy, but at the same time, there is a good appreciation seen in rental owing demand. It means that there is a shortage in availability of the right product offering at the right location.

Lewin G,

30th June 2015

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Hi Lewin,
I just want to know the major reason behind the fall of rentals in Mumbai's CBD?

Santosh TR,

30th June 2015

Well Santosh,
According to me, one of the major reasons behind the fall in rentals is the shift in demand from Mumbai's CBD to the secondary business districts in its suburbs. The city's CBD is loosing its shine over the past 5-6 years and rental here fall by 3-4% in the last one year.

Lewin G,

30th June 2015