Friday, August 24, 2007

Rentals at 450 Rs per sq ft in Mumbai

Mumbai: Mumbai's property market has set a new record! A commercial property was sold at a whopping Rs 450 per sq foot in the financial hub of Bandra Kurla complex.

Forget residential buildings, which are already above a crore for a standard 2-bedroom flat, the office spaces in Mumbai are now costing something next to one in Manhattan.

Corporates are literally struggling to find a reasonable deal. Over the past 9-months, rentals have shot by 40 per cent in the posh Bandra Kurla complex area in Mumbai.

Limitless Group, a sister company of Dubai based developer Nakheel has recently signed a $ 10 billion joint venture with real estate major DLF, to develop townships in Mumbai.

The Dubai based group has already snapped up 12,000 sq feet in the famous IL&FS building in Mumbai, which is now renting out space in the building at Rs 450 per square foot.

The Limitless Group will pay Rs 54 lakh a month for its own office space.

Rents in Bandra Kurla Complex have now crossed the rentals at Nariman Point and Lower Parel areas where they are at Rs 290 - 350 per sq foot.

Sources say this recent deal at IL&FS already has led the builders quoting sky high prices for mediocre properties. Anuj Puri, Chairman & Country Head, JLLM said, “It’s purely because demand is outstripping supply. 12 months ago the prices were at Rs 250 a sq foot, which though seemed high at that point have gone much higher now.”

Recently, the British High Commission pre-leased a space in the under-construction Naman Chambers for Rs 350 per sq foot.

The Fortune 2,000 building and Windsor Plaza are now quoting Rs 330 a sq foot compared to Rs 250 six-months back.

The Bandra Kurla complex has only 3 lakh sq feet of commercial space to offer at the moment. And that is a far cry from the current requirement.

Industry watchers say approximately 2 million sq feet of office space will enter this market in the next 2 years, and that's when corporates could find some respite from the soaring rentals.

3 comments:

Shailesh said...

Nice blog. Good collection of articles.

Shailesh said...

Nice Blog. Not sure why there are not many comments from visitors.

Anonymous said...

before saying anything give its proof

ALL THESE PRICES ARE NONSENSES TO CREATE ILLUSION AS TO REALLY THE PRICES ARE HIGHER