A report from the global real estate firm CB Richard Ellis suggests that millions of square feet of office space are to be added to India’s stock in 2011, with Mumbai particularly likely to see plenty of new commercial developments completed.
The strength of the Indian economy is such that some 50 million square feet of office space could well be made newly available across the sub-continent during the next 18 months or so, with Mumbai expected to account for roughly 25 per cent of the country’s additional office space.
Overall vacancy rates associated with office space in India are likely to diminish slightly in coming months, while real estate sectors in general are expected to perform relatively well, CBRE’s South Asia managing director Anshuman Magazine suggested recently.
“The overall real estate performance of the country has been on an upward trend with increasing transaction volumes,” Mr Magazine remarked.
“This is due to sustained IT industry activity, impact of economic recovery on new economy sectors, global optimism on corporate expansion, consumer confidence and a rise in income levels.”
Behind Mumbai in terms of cities with the strongest office space development prospects in India are Bangalore, in the south of the country, and the capital New Delhi in the north.
A few months ago, an Indian arm of the Siemens engineering conglomerate revealed its intention to introduce various new sustainability measures and technology into the dozens of offices it currently operates from in major cities throughout the country.
Editor’s notes: Take up through office leasing activity in the first quarter of 2023 was 3.05 million square feet which represented a drop of 32% on the previous strong quarter and a drop of 11% year on year.
In 2022, the most expensive district in which to rent office space in Mumbai was the Bandra Kurla Complex where it cost an average of 277 Indian rupees per square foot per month, followed by the central business district (CBD) where it costs 212 rupees per square foot per month, followed by Worli / Prabhadevi district where it cost 191 rupees per square foot per month.
The cheapest area in which to rent office space in Mumbai in 2022 was Navi Mumbai where it cost 67 rupees per square foot per month.
For those looking for alternatives to renting office space on conventional leasehold terms, there is a wide range of flexible office space and workspace solutions such as private serviced offices, managed office suites and corporate coworking solutions. Some of these flex space solutions in Mumbai can be seen here.