Indisputably, it is the IT and ITeS industry that drives the commercial properties in metropolitan cities of Mumbai, Delhi, Bangalore and Chennai. As corroborated by various industry reports and researches, more than 80 per cent of the Grade A office space in India is absorbed by IT companies, that are currently 7,000 in number.
However, the scene is changing fast. With Indian economy clocking growth rates as high as 9 per cent year-on-year, the sectors of banking, finance and investment have also started showing strength.
The impact is visible on the financial capital of India-Mumbai. In the past 6-months most of the major commercial property deals in Mumbai are undertaken by the aforesaid industries, and the size and nature of deals is just amazing.
Finance major ABN Amro renewed the lease for its 12,000 sq. ft office space at Sakhar Bhawan located at the Central Business district of Mumbai Nariman Point, at a staggering rental rate of Rs 500 per sq. ft. The company was paying Rs 180 per sq ft for the last 3-years, for the same office space! A hike by more than 150 per cent in such a short span.
Furthermore, Fidelity Investments also leased 1,850 sq. ft of space at Nariman Point’s Maker Chambers, at Rs 450 per sq. ft. Definitely, these rental values are one of the highest in the world, and as per the recent research reports way ahead of Manhattan where maximum lease value were recorded at Rs 390 per sq. ft.
Well, it is not that only the CBD area of Mumbai is simmering like boiled water. Commercial properties at Parel, Lower Parel and Bandra Kurla Complex (BKC) are also steaming up with soaring prices. Take for instance, the Morgan Stanley deal. The investment major leased a huge office space of 12,500 sq. ft at Peninsula Corporate Park at the rate of Rs 400 per sq. ft.
The rates however are comparatively low at Lower Parel, and KPMG was intelligent enough to corner 30,000 sq. ft of office space at the rate of Rs 275 psft, sources informed.
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