Mumbai property update: Demand remains moderate
Office space demand continued to remain moderate in October in Mumbai . The month was characterised by major occupiers renewing their leases with landlords being flexible over terms and offering discounted rents.
November 20, 2013 / 16:29 IST
Jones Lang LaSalle India
Office: Office space demand continued to remain moderate in October. The month was characterised by major occupiers renewing their leases with landlords being flexible over terms and offering discounted rents. The vacancy rate remained stable across all sub-markets except for SBD BKC, where it increased minimally. It should be mentioned that projects that became operational in the month witnessed low pre-commitments. Major transactions in October included Hyundai Merchant Marine leasing space in SBD North, WNS renting space in Navi Mumbai and Glenmark renewing its lease in SBD North. Wing D of Equinox Building in SBD BKC commenced operations during the month. Meanwhile, both rents and capital values remained unchanged across the city. Retail: Retail space demand in Mumbai remained moderate in October. Select categories such as food and beverage and retail banking continued to expand in select pockets of the city. On the back of the festive season retailers were seen offering discounts to clear unsold stock. The vacancy rate in malls continued to remain stable in the month. Major transactions included Cosmos Bank and Apple Inc both taking up space in the Suburbs sub-market. Rents and capital values remained stable over the month. Residential: Residential sales continued to fall as home-buyers took a wait-and-see attitude and waited for the right opportunity to buy. Developers continued to try to attract buyers by offering limited period discounts or giveaways in order to increase the October sales volume. The month witnessed some new launches including Omkar Ananta by Omkar Realtors at Goregaon, Legranz by Ekta World at Chembur and Wadhwa Solitaire by Wadhwa Group at Thane. Meanwhile, rents remained unaltered at their previous month’s level. Capital values continued to stagnate on account of constrained demand from home-buyers coupled with the uncertainty in the economy. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
