Real estate price trends in Mumbai and its suburbs
Mumbai looks as if it is going to retain the costliest city status for years. The real estate city is buoyant. The city area is likely to witness as appreciation of 5-8% while the suburbs can expect a rise of 7-11%. Influx into Mumbai ready steady. Together with growing internal population, demand will rise to match supply. While recently the Supreme Court has allowed buyers of mill lands to get their development plans approved, it has restrained them from constructing pending the litigation on mill land usage. One therefore doesn’t foresee any oversupply of inventory in the next two years atleast prices would remain firm. On the commercial property front, Nariman Point is making a come back. Prices there surge more than 80% to reach Rs 15,000 a sq.ft. in 2006, it may rise by 20%.
There is limited supply of premium category flats catering to the High Networth Individual. Prices in this segment could move up 20-25%. Overall, increasing land prices seems to be the determining factor in the upward spiral of rates. there is neither slump nor an oversupply situation waiting to happen in 2006 and so it is highly unlikely that the projected appreciation would not take place. Fortunately, speculative demand is not high enough to push prices further. If the mill land case goes against the developers who bought the land, prices could shoot up by another 7%.
Another driver of prices is the switch over of the middle-class from the leasing option to the purchase option. More and more buyers are coming forward with open minds and purchasing what ever suits them or fits them best. Once they find the a property of their choice, they are willing to pay a premium on it if required. Mumbai is more prone to this because of huge commuting distances in the North-South corridor.
MUMBAI MARKET TRENDS
Central Business Districts
Mumbai’s CDB Nariman Point lies at one end of the Mumbai. Nariman Point is also facing the issues plaguing the CDBs nowadays. Market conditions have already forced Mumbai to look at the options outside south Mumbai as business areas. Navi Mumbai was one option, which failed to take off, due to lack of support from the state government. But the Bandra-Kurla complex has succeeded in attracting some major financial institutions and companies. this is mainly because of lower property rates and modern quality constructions with large floor spaces. Several companies have closed down their offices all over Mumbai and consolidated under one roof in the Bandra-Kurla complex. Prime examples of this are ICICI, IL&FS and Citibank. This business complex has come up very well, but until more companies move there soon,. The other supporting infrastructure items like restaurants and public transport will not develop to the same extent as a commercial complex. Nariman Point is certainly feeling the pressure, with its capital and rental rates dropping substantially, over the past couple of years. But this exodus has been limited from the south Mumbai. Another commercial area, which has been developing slowly, is the mill area in Worli and Lower Parel, but this mainly in retail sector.
OVER VIEW OF COMMERCIAL REAL ESTATE MARKET IN MUMBAI
Mumbai is fast being recognised across the world as an IT and ITES hub. High literacy levels, easy availability of intellectual talent at 50-60% lower cost as compared to other international cities, better productivity and a time zone difference of 8-10 hours that makes it possible for offshore corporates to respond quickly since processing is done through Mumbai during the night, are some factors that have made Mumbai the most favoured destination to China, Singapore, Philippines , Ireland and UK.
The S.T.P.I (Software technology parks India) is encouraging more and more IT parks. These buildings are specifically customised for IT and ITES corporate. Scalability, large floor plates, large columns free structures, ample space for large number of work stations, excellent infrastructure are the key attributes that make the IT park and attractive propositions.
Types of office spaces available:
Office spaces available in the city range from 150 sq.ft to 32000 sq.ft. in a single floor plate, larger spaces are available on combined floor plates. Offices spaces are generally categorized as:
Unfurnished or bare shell offices
Warm shell offices
Fully furnished of plug and play office spaces
Location of major Commercial Hubs in the City:
Central business districts in Mumbai are located at Nariman Point, Fort, Ballard estate, Worli, Lower Parel, Bandra-Kurla complex, Santacruz East (Kalina), Andheri East, Malad and Powai.
Apart from these locations the spread of commercial activity is dominant all over the city of Mumbai. The fast growing commercial areas are now shifting to the suburbs Like Bandra, Andheri, Malad, Powai and the likes for simple reason being the proximity to residential location of the manpower and availability of the desired floor space at the cheaper and affordable prices with a lot of options.
The other for the shift in the trend of commercial location is the saturation of the companies in the existing CDBs. This saturation has led to an overload on the infrastructure provisions like power, water, etc. since the local government is unable to cope to the heavy demand a reverse trend has been observed in the existing commercial markets with established companies moving towards the suburbs for a much smoother business development.
Nature of companies / MNCs In CDBs:
Banking, Financial and FIIs, Nariman Point, Fort
Companies, shipping, law Ballard Estate, Worli, Lower Parel
Firms, Print Media Companies
Infrastructure, banking, Worli, Lower Parel, Bandra-Kurla
Insurance, Media, It, Software, complex Andheri, Powai
Manufacturing companies, etc.
Data centres, call centres, back Lower Parel, Bandra-Kurla complex,
Office operations, Trading Andheri, Powai, Malad.
Property Rates of Prime Commercial districts in Mumbai
Location Lease Rates**/SFT* Purchase Rates**/SFT
Cuffe Parade 60-100 8000-15000
Nariman Point 80-165 8000-15000
Ballard Estate 80-125 7000-12000
Fort 80-125 7000-12000
Tardeo/Mumbai Central 70-100 7000-10000
Worli 60-110 5500-10000
Prabhadevi 60-100 5500-9500
Lower Parel 50-85 4800-9000
Bandra Kurla Complex 75-125 6000-12000
Kalina 30-75 4000-6500
Andheri(E) 15-75 2000-5000
Andheri(W) 25-60 2500-5500
Powai 30-55 4000-5500
Goregaon 30-50 3800-5200
Malad 20-50 2000-5000
Navi Mumbai 10-50 1000-2800
*Deposits Equivalent to 6 to 12 months are normally charged.
*Business centres also plug and play offices in most of the above districts for Short/ Long Term.
**All rates are in Indian Rupees
Chembur, the central suburb of Mumbai, is one of the greenest suburbs. It is just 15 km away from Churchgate. Chembur is a residential and commercial area. Like the other suburbs of Mumbai, Chembur is growing at a fast pace.
Chembur has good infrastructure facilities. It has easy access from all the suburbs of Mumbai. Chembur is at key location, connecting Navi Mumbai and old Mumbai. Chembur has a variety of options for shopping, with Shoppers’ Stop and many other shopping centers. New multiplexes and shopping centers are also on the anvil. In education and entertainment, Chembur is on par with other suburbs. Various schools and colleges, and cinema halls including Ashish, Basant, Nataraj, Vijay and New Vijay are present
The well known Tata Institute of Social Science is here. Chembur is famous for its Golf Club and R K Studio. Gardens like Sadhu garden, Dr. Ambedkar garden and Diamond Garden are adding to the beauty of Chembur. Although this suburb is growing rapidly in both residential and commercial sectors, it is not overpopulated and can retain its peace and green atmosphere.
Chembur is an ideal location for residential purpose. Chembur has number of Bungalows surrounded by trees. The reasonable property rates are attracting buyers in the residential sector. On other hand, builders have also come up with projects having all modern amenities. The residential property rates in Chembur are in the range of Rs 2000 to Rs 3500 sq.ft, while rental rates are in the range of Rs 8 to Rs 25 sq.ft/pm. Reputed builders like Runwal group, Prime realty, Sabari builder and Kalpataru builders, have their residential projects here.
The prospectus of commercial markets are also bright. Many commercial projects are in progress. Shoppers Stop has opened a branch here, and a multiplex is under development. the commercial property rates are also reasonable, as compared to other suburbs of Mumbai. It ranges between Rs 2500 and Rs 5000 sq.ft, depending upon the exact location and amenities, while the rental rates are in the range of Rs 15 to Rs 65 sq.ft/pm.
PROPERTY MONITOR – GHATKOPAR
Ghatkopar is a central suburb of Mumbai. Ghatkopar, with a history of more than a century, is one of the oldest settlements in Greater Mumbai. Its strategic location, which facilities easy access to the key areas of Mumbai, is the primary reason for its growth in residential and commercial sectors. In the recent past, it has been seeing a spurt in growth, with more developmental activities coming up in Navi Mumbai.
Ghatkopar has good connectivity, educational institutions, modern hospitals and entertainment facilities. Odeon in Ghatkopar (E), Uday and Shreyas in Ghatkopar (W) are some of the theatres here. Besides, it has good shopping facilities, with the famous retail shop, Shoppers Stop and many small shopping centres such as Jayant Villa, Shree Krupa, etc. Ghatkopar (E) is becoming more popular as compared to Ghatkopar (W). the main reason appears to be the presence of slums and industrial units in Ghatkopar (W).
The residential property rates in Ghatkopar (E) and (W) are in the average range of Rs 3000 to Rs 5000 per sq.ft., while rental vary between Rs 10 and Rs 30 per sq.ft pm. The rates differ depending upon amenities, quality of construction, etc. since Ghatkopar has easy access to commercial and industrial areas, the rates are little higher, when compared to the nearby suburbs. Upcoming residential projects in Ghatkopar include Everest gardens & Nand Ashish by Everest group, Mahindra Park by Gesco Corporation. Godrej Grenville Park is being developed by Godrej properties on a 50000 sq.ft area.
Fast and rapid development of residential market in an area naturally boosts commercial activities. Ghatkopar is no exception to this rule. Ghatkopar is an ideal place for commercial establishments. The property are in the rates are in the range of Rs 4500 to Rs 7000 sq.ft. the retail chain shoppers is present here. Bhaveshwar Plaza, an office/shopping complex is promoted on an area of 40000 sq.ft. VHP House is developed by VHP builder on 7000 sq.ft, exclusively for office space. Krushal commercial center, spread over 100000 sq.ft. area, has been already completed.
PROPERTY MONITOR – JUHU
Juhu, in the Northern suburbs, is a cool and posh area and has some of the prime real estates of Mumbai. Besides, Juhu is also famous as a picnic spot. Juhu Beach is the most popular beach of Mumbai and attracts all the Mumbaikars and other tourists. The Iscon temple, renown for the Hare Rama Hare Krishna movement and the evening aarti is located in Juhu. Juhu has excellent transportation and communication facilities. All the suburbs of Mumbai can be easily accessed from here both by bus and train. Well know industrialist Jamshetji Tata had purchased a plot here in 1890 and built a bungalow. Juhu is a posh residential locality of Mumbai with many bungalows of film personalities. The southern end of Juhu is full of luxurious hotels and apartments. many reputed schools and colleges are located here. Some reputed hospitals like Nanavati hospital and N.R Cooper hospital are also present here.
As a commercial area, Juhu has also its separate identity. Juhu has a number of five star, four star and three star hotels. These include Sun N Sand, Holiday Inn, Hotel Sea Princess, The Emeralde Hotel, Hotel Ajanta, Centaur Juhu Beach and Citizen. J W Marriott’s, a seven star Hotel is also located here. In addition to these hotels, restaurants / coffee bars like Barista, Café Coffee Day, Mahesh Lunch Home, Roti and Dosa Diner are present here. Another major advantage of Juhu is the presence of Sahar International and Santacruz Airport.
Juhu is considered one of the posh residential areas of Mumbai. Cine stars have preferred Juhu for their residential place. Hence the property rates are high as compared to other suburbs. The residential property rates in Juhu are in the average range of Rs 6000 to Rs 8500 per sq.ft. while the rental rates are in the range of Rs 15 to Rs 55 per sq.ft pm. Reputed builders like Mittal have Megh apartments, Mittal paradise and Mittal Ocean view while Rizvi have their projects with super duplex flats and modern amenities.
As a commercial area, Juhu is more known as a picnic spot due to the beach. There are several excellent hotels here along with all the facilities and shopping arcades. Supreme shopping center and body basic beach haven shopping arcade are some of the names present. The commercial property rates are less than the residential property rates here. The commercial property rates are in the range of Rs 4500 to Rs 7000 per sq.ft. while the rental rates are in the range of Rs 50 to Rs 80 sq.ft pm.
PROPERTY MONITOR – KALYAN
Kalyan is a satellite town of Mumbai, lying 54 km to the south. Kalyan is characterised by hills and green areas. Kalyan comes under the governance of Kalyan Dombivili Municipal Corporation.
Kalyan has been developing fast in both residential and commercial sectors. Kalyan owes its growth to its proximity to Mumbai and location at the junction of south, and east bound railway lines. Another reason for Kalyan’s growth is the industrial areas such as Dombivili, Murbad, Badlapur and Tarapur. Also a number of car spare part manufacturing factories and rice mills are here. Kalyan is mostly populated by middle class people.
Kalyan has quality infrastructure facilities. Local train running on Mumbai-Karjat and Mumbai-Kasara tracks pass through Kalyan. Educational facilities are very good. Many major convent schools are here.
KDMC ( Kalyan Dombivili Municipal Corporation) is doing a lot to improve the infrastructure. KDMC has computerized its operations and created citizen facilitation centres for providing better services to the public. It is one of the few IT enabled municipal corporations in India.
People, mainly from Dadar, Girgaon and near by suburbs are shifting to Kalyan and Dombivili. Although Kalyan is more known as residential area, many commercial projects are also coming up. Mumbai builders are concentrating on Kalyan and developing several residential and commercial projects. Plenty of land is available here, since factories in these area have been shifted to other industrial areas.
Kalyan is ideal residential area for middle class people. The residential property rates are in the range of Rs 900 to Rs 1200 sq.ft, while rental rates are in the range of Rs 2.5 to Rs 6 per sq.ft pm, approximately. These affordable prices, educational and medical facilities are attracting to buyers to stay here. With all the advantages, Kalyan is also ahead in entertainment. More than 12 cinema halls and drama theatres are here. Residential projects like Godrej Hills by Godrej, Lok Surbhi, Lok Udyan, Lok Vatika by Lok Group, Yogi Dham by Ajmera are in the progress in Kalyan. Also Deshmukh Brothers, D.S.K Group, Mantri Group, Ravi Constructions are also involved in developmental activities.
The commercial market in Kalyan is also picking up. The areas adjacent to the roads near Kalyan railway station are the important commercial area. Mahavir Shopping complex, Jojwala complex and Sreedevi complex are some of the famous shopping centres. Besides, several small and medium size shops and hotels are also present. The commercial property rates are in the range of Rs 1500 to Rs 3500 per sq.ft., whereas the rental rates are in the range of Rs 12 to Rs 35 per sq.ft pm.
PROPERTY MONITOR – MALAD
It is a boom time for real estate market in the suburbs of Mumbai. In the western suburbs of Mumbai, Malad has been seeing a lot of growth in both residential and commercial sectors, thanks to the increasing demand from Mumbaikars.
Malad is blessed with many shopping centres, good medical facilities, and quality educational institutes. Besides, it has proper transportation and communication facilities. Malad has good picnic spots and is famous for its beaches (Marve/Aksa/Erangal). A few well-known restaurants & hotels, e.g. Land mark Hotel, The Resort and Retreat, are present here. Malad has good entertainment facilities. Another advantage of Malad is its proximity to suburbs like Goregaon and Kandivili. All these factors have contributed to the growth of real estate in Malad.
The residential market in Malad has seen a steady growth over the years. The affordable prices and the facilities available here attracting buyers. The residential property rates for Malad (E) & (W) are in the range of Rs 1800 to 2200 per sq.ft. approximately. The upcoming residential projects include Palm Court by K Raheja construction, Rustomjee Adarsh Regal & Rustomjee Riviera by Keystone Group, Saraswati by D.S. Kulkarni, Serenity Heights by K Raheja Corp. and Raj Manor. The following table gives the property rates for Malad and its neighbourhood.
Residential Property Rates:
Locality Outright Purchase [Rs/sq.ft] Rental Rates [Rs/sq.ft.pm]
Min Max Min Max
Malad [e] 1800 2200 5 18
Malad [w] 1800 2200 5 20
Kandivili [e] 1800 2500 5 18
Kandivili [w] 1800 2500 5 20
Goregaon [e] 1900 2700 5 22
Goregaon [w] 1900 3000 5 25
Malad’s commercial market is also looking up. Most of the reputed companies in IT sector and IT enabled sectors are shifting to Malad, mainly due to attractive property rates, as compared to other suburbs. In addition many shopping centres are also coming up to cater to the needs of growing population. Malad has many shopping centres, e.g. Natraj shopping center, Shivam shopping, Vaishali shopping center, Malad shopping center on S.V. Road, Shantinath center near New Era Theatre. Vasant Plaza has come up recently. A major, high class shopping center by Dheeraj builder is to be opened up soon on a 75000 sq.ft area. One more commercial project by K Raheja builder, Mindspace with 350000 sq.ft, is expected to be complete in 2003. Intelenet Global Services Ltd is promoting their second centre, which covers an area of 200000 sq.ft.
Commercial Property Rates:
Locality Outright Purchase [Rs/sq.ft] Rental Rates [Rs/sq.ft.pm]
Min Max Min Max
Malad [e] 3000 5000 15 60
Malad [w] 3000 5000 15 60
Kandivili [e] 2500 4000 15 70
Kandivili [w] 3000 4000 15 50
Goregaon [e] 2500 4000 20 50
Goregaon [w] 2500 4000 20 50
PROPERTY MONITIOR – MULUND
Mulund is a green, well planned suburb of Mumbai, located close to the boundary of Thane and Navi Mumbai. Mulund has seen synchronized growth in both residential and commercial sectors. Mulund, once preferred mainly by the middle class, now offers prime residential and commercial projects. A number of huge residential and commercial projects are coming up here. Despite its rapid growth in residential and commercial sectors, Mulund is not over populated, and can retain its peaceful, green atmosphere, thanks to its grid pattern layout by German town planners the most developed area is LBS Marg to Mulund-Goregaon link road. A major advantages are the presence of shopping malls and super markets, medical facility, entertainment facilities, and sports facilities such as badminton and tennis courts, swimming pool and gymnasium. Several theatres including Kalidas Natya Mandir and Jai Ganesh and Mehul Cinema halls are present here. Mulund has also a number of reputed schools and colleges. One more advantage of Mulund is the residential belt, which is within 30 minutes drive from Mumbai.
Mulund is emerging rapidly as the best residential area. A host of large and small project is in progress and many are ready for possession. The areas occupied by some of the closed down industries have converted into residential areas. The residential property rates are in the average range of Rs 1500 to Rs 2500 per sq.ft., depending upon the exact location, amenities, reputation of the builder, parking space, etc., while rental rates are in the range of Rs 2.5 to Rs 10 per sq.ft.pm . Many prime projects, including Nirmal Lifestyle and Takshashila by Nirmal Group, Indraprasth by Karia Builders and Marathon Galaxy by Marathon Group are coming up.
With the rapid growth in residential sector, the commercial market is also picking up. Many shopping malls and shopping centres are under construction. Nirmal group is promoting a huge shopping mall on 500000 sq.ft area, while Runwal Group is also coming up with another shopping mall on a 300000 sq.ft. area on LBS road. Another commercial-cum-super market (Marathon Cosmos and Marathon Max) is under construction on a 200000 sq.ft area by Marathon Group. The commercial property rates are in the average range of Rs 2000 to Rs 3500 sq.ft., while rental rates are in the average range of Rs 20 to 45 per sq.ft.pm.
PROPERTY MONITOR – SION
Sion, the strategically located suburb of Central Mumbai, has been witnessing a steady growth in residential and commercial real estate markets. Sion West is considered a good residential area, while Sion Circle is principally a commercial area. Sion’s biggest advantage is its centrally located railway stations, viz., Sion Station, King Circle and Guru Tej Bahadur Nagar Station. This offers easy access to Sion from allover Mumbai. An additional advantage of Sion is Flyover, which has helped reduce the traffic problem and also the pollution levels. One more plus point of Sion is the excellent service offered by the BEST. In addition, Sion also has a benefit of modern hospitals, educational institutes and shopping complexes and entertainment facilities. Sion Talao (Sion Lake) adds to the beauty of Sion. Sion Circle has all the major and retail shops. Other markets are also very close to this Sion Circle. Well known Lokmanya Tilak Municipal General Hospital (Sion Hospital) is here. Sion Fort is a great place for picnic.
The rapid development of this area has attracted the builders. Sion is one of the best emerging places for both residential and commercial sectors. All the major banks like HSBC and corporation bank have opened ATM centres here, while the few banks like HDFC, are planning to open ATMs in Sion. Barista has opened their branch here. Dominos Pizzas is present. In educational sector also, Sion is a head with colleges of South Indian Education Society as well as Guru Nanak Vidyak Society. A number of reputed schools are located here. While a multiplex cinema, Cine Planet 1 and Cine Planet 2 are offering entertainment. In addition, Reliance Webstore is opening soon in Sion Circle. All these facilities and advantages are attracting buyers and builders.
Sion east is mainly a residential area. The property rates are affordable here. Kalpataru builder is coming up with an excellent project there. The residential property rates in Sion are in the range of Rs 2800 to Rs 4000 per sq.ft, depending upon exact location, amenities and reputation of the builder. While the residential rental rates are in the range of Rs 8 to Rs 30 sq.ft.pm.
Sion Circle, the major commercial area of sector has seen tremendous development in last few years. The commercial rates in Sion are in the range of Rs 3500 to Rs 5200 sq.ft depending upon exact location and rental rates are in the range of Rs 20 to Rs 65 sq.ft.pm.
PROPERTY MONITOR – VASAI
Vasai is town located on the outskirts of Mumbai, in Thane district. Vasai lies about 50 km away from Mumbai and 20 km from Borivali. As a famous picnic spot, Vasai attracts people from Mumbai and its neighbourhood. A number of historical temples are also present in the vicinity of Vasai. Vasai has green surroundings and many beautiful sea beaches. The famous Vasai fort, built by the Portuguese, is another tourist attraction here. Vasai is also famous for bananas. In addition, Vasai is a major supplier of food products, green vegetables, fruits fish and milk to Mumbai.
The fast expansion of Mumbai urban conglomerate has seen Vasai grow rapidly. Vasai’s growth potential is attracting Mumbai builders and businessmen. Another most significant advantage of Vasai is the industrial belt in Vasai [e]. Many large and medium industries are operating here. Builders like Evershine builder, K Raheja Corp. . KT Builders, builders Mittal builders and a few others are engaged in development facilities such as shopping centres. Vasai is also ahead in education and entertainment. Scores of reputed schools and colleges are here.
Vasai [w] is more known as residential area. While Vasai [e] is a commercial area. Vasai [w] is greener and busy with construction activities. The residential property rates are in the range of Rs 950 to Rs 1200 sq.ft. Vasai [w], while in Vasai [e] is Rs 800 to Rs 1000 sq.ft.pm. Approximately. The residental rental property rates are in the range of Rs 2 to Rs 8 sq.ft.pm. The projects like Vasant Nagari by K Raheja, Evershine City, Evershine Estate by Evershine Builders are some of the projects in Vasai. Industrial area in Vasai [e] and easy access to Mumbai have contributed to Vasai’s Growth.
The activities are also booming here. Easy access, availability of land and the low property rates support the rapid development in commercial sector. The industrial belt in Vasai [e] and KT industrial estate developed by KT builders also encouraging the growth. The builders such as Evershine & KT builders are providing commercial facilities like shopping centers in their residential projects. Mittal builders also has provided such facilities. Vimal shopping centers and Vardhaman shopping centers are the busy shopping centers in this area. The commercial property rates are in the range of Rs 1500 to Rs 2500 sq.ft., while the rental rates are in the range of Rs 10 to Rs 35 sq.ft.pm.
PROPERTY MONITOR – WORLI
Worli is the second largest commercial area in South Mumbai. Worli is also a posh residential area. Worli is emerging an attractive destination in South Mumbai and getting prominence over Nariman Point. Worli has several key institutions; for example, National Stock Exchange (NSE) and Nehru Science Centre. It also has a famous Worli Dairy. Worli has good connectivity. All business areas of Mumbai can be easily accessed from Worli. Big shopping centers such as Cross Road, West End and Heera panna are very close to Worli suburb. A well known Hypermarket by S.Kumar’s is in Worli on a 50000 sq.ft area. Another advantage of Worli is the sea face, which is an ideal spot for outings in the evenings. Haji Ali and Girgaum Chowpatty are also very close to Worli. Poddar hospital, reputed medical institution is in Worli.
The residential property rates are in the average range of Rs 4500 to Rs 11000 per sq.ft., while rental rates, Rs 20 to Rs 50 per sq.ft.pm, depending upon exact location, amenities, parking space, etc. Sterling Sea Face by Shapoorji Pallonji & Co. Ltd., DSK Durgamata Towers by DSK group, Marathon Concord & Marathon heights by Marathon group are some of the major upcoming residential projects.
Worli has seen a number of transactions in last few months. The following are some of the transactions.
A high commission leased a large four-bedroom apartment, measuring approximately 3000 sq.ft. on Pochkanwala Road for an effective rent of Rs 300000 per pm.
Apartments of 2566 sq.ft and 4011 sq.ft area in Godrej Bay View, were sold for Rs 16000 per sq.ft and Rs 18500 per sq.ft, respectively.
The commercial market in Worli is looking bright. According to a survey conducted the market is very active in Worli and Prabhadevi. Taking the advantage of comparatively low rental rates, a large number of corporates are moving to Worli. The commercial property rates in Worli are in the range of Rs 7000 to Rs 11000 per sq.ft., while the rental rates, Rs 50 to Rs 90 per sq.ft.pm. Hyundai has taken space in Siemens building. Mercedes Benz has opened a showroom in Worli. Landmarc Citi, a retail shop by S.Kumar’s, is coming up on 200000 sq.ft. area and is expected to completed in the end of 2003.
IDBI has taken up a 45000 sq.ft space at Victoria Mills, Worli.
HSBC has purchased approximately 59000 sq.ft office space in Worli from Glaxo.
Wyeth Lederle leased an office space measuring 26000 sq.ft in an A-grade commercial building.
PROPERTY MONITOR – BORIVALI
Borivali lies between Kandivali, a well developed western suburb, and Dahisar, a small, growing suburb. Borivali has been bustling with residential and commercial activities in recent past. It has the well known Sanjay Gandhi Park or Borivali National Park at Borivali, which attracts people from all over Mumbai. The advantages of Borivali includes comparatively lower property rates. Hence it attracts lot of people. The residential complexes at Charkop and Lokhandwala projects have contributed to the growth of the commercial market in Borivali. Borivali has two big shopping malls, while one more is under construction.
The residential property market in Borivali is developing rapidly. The property rates are here are reasonable as compared to the other suburbs. All the reputed builders in Mumbai have their projects in progress or in ready possession in Borivali. The residential property rates are in the range of Rs 2300 to Rs 3000 per sq.ft. for Borivali [e], while for Borivali [w] they lie between Rs 2500 to Rs 3500 per sq.ft. (approx.). On other side the rental rates are in the average range of Rs 5 to Rs 25 per sq.ft. per month for both Borivali East and West.
Raj Valley, Raj Umang 2, Raj Sunflower, Raj Sarovar, Raj Sagar, Raj Heritage, Raj Anmol and Raj Anand are the major projects coming in Borivali East and West. These projects have 8 to 13 floors with all the modern amenities.
K.Raheja constructions also have big projects like Raheja Estate and Raheja Green in Borivali East. Raheja Estate is a 14-storey building with 2BHK flats. While Raheja Green project has 20 floors with 1 & 2 BHK flats.
The commercial market in Borivali is also looking up thanks to the growth in residential market. Indraprastha and A to Z shopping malls are located in Borivali. One more shopping mall is also under construction. The commercial rates in Borivali (e) are in the range of Rs 3000 to Rs 4500 sq.ft., while at Borivali (w) they are in the range of Rs 3500 to Rs 5000 per sq.ft. The rental rates are in the range of Rs 15 to Rs 70 per sq.ft. per month, depending upon the exact location of property and other factors.
Locality Outright Purchase [Rs/sq.ft] Rental Rates [Rs/sq.ft pm]
Min Max Min Max
Borivali [e] 3000 4500 15 50
Borivali [w] 3500 5000 15 70
Dahisar 2200 3500 15 45
Kandivali [e] 2500 4000 20 50
Kandivali [w] 3000 4500 20 60
Gautier, the retail of French designer furniture chain, has opened up its outlet Borivali on a 4000 sq.ft area. It is one of its 20 outlets all over India.
Industrial Estate project is coming in Borivali(e).
PROPERTY MONITOR – POWAI
Powai has emerged as a new hub of construction activities in the suburbs of Central Mumbai. Powai has plenty of greenery and has a famous lake. Powai is about 20 miles south of Mumbai city. The location of Powai is its major advantage. All the commercial areas such as Andheri, Bandra-Kurla complex, Maharashtra Industrial Development Corporation Complex, New Mumbai and Santacruz Electronic and export promotion zone are very close to Powai. It also has the famous Indian Institute of Technology. Powai is deal for both residential as well as commercial purposes.
Many reputed builders are developing residential and commercial complexes with excellent amenities and facilities. Hiranandani and K.Raheja are providing not only state of the art amenities, but also at affordable rates. several MNCs, e.g. Colgate, Bayer and FedEx, with few other well known software companies have moved in. a few companies have also shifted their offices from Nariman Point to Powai.
Powai is like other best suburbs, is seeing the arrival of a few multiplexes. Hiranandani Constructions are coming up with a huge multiplex, which will include commercial offices, a family entertainment center, a shopping complex, restaurants, banks, etc. transportation facility is excellent at Powai. Flyovers are also coming up in Powai. Definitely, this will be a plus point to attract more buyers in the residential sector.
The residential market in Powai has seen massive changes in the last few years. A host of huge projects are ready for possession, while a few others are under construction. The residential property rates in Powai are in the range of Rs 2500 to Rs 3500 per sq.ft. depending upon amenities, exact location and other facilities, while rental rates vary between Rs 20 to Rs 35 per sq.ft. pm.
The commercial market here is also growing very rapidly. Reputed builders like Hiranandani, K.Raheja are coming up with different schemes, while few multiplexes are in the pipeline. The commercial property rates are in the range of Rs 3000 to Ts 4000 per sq.ft, whereas the rental rates are in the range of Rs 35 to Rs 50 per sq.ft pm.
PROPERTY MONITOR – VASHI
Vashi, located at a comfortable location in Navi Mumbai, is just 45 minutes away from Mumbai. Vashi with its multifunctional nature has emerged as an ideal residential-cum-commercial destination in Navi Mumbai. It is well planned and has all the modern facilities and infrastructure, which attract businessmen and individuals. Beautiful green areas and lot of open space are the biggest advantages of Vashi. Several software companies and large and medium companies have already moved in here. Reputed builders have chosen Vashi as their preferred destination. A major advantage of Vashi in terms of residential needs, is the reputed schools and colleges. Excellent infrastructure with good transportation facility is the other major plus point.
Vashi station complex, built on a 7,57,289 sq.ft area, at the entrance of Vashi node is a top class railway station. The complex can be easily accessed from Mumbai – Pune highway. The complex has office premises covering an area of 5,91,800 sq.ft, while the shopping arcade is on a 1,63,552 sq.ft area. The Sprawling Arcade is an excellent shopping center at Vashi. This arcade has open restaurants, kids center banks, etc. a huge Millennium Tower by Shirke Group is located at sector 9. The software park, called international Infotech Park lies close to the Mumbai-Pune highway. Mastek, Datamatics, and Aptech are the few of the software companies that have taken offices in Vashi and Sanpada.
With all these facilities, Vashi is also a head in other services like hospitals, entertainment, etc. reputed hospitals like NMMC hospital, New Bombay hospitals are providing medical facilities here.
Vashi has emerged as the best residential option in Navi Mumbai. Vashi is pollution free and the rates are affordable as compared to Mumbai. In addition, the excellent infrastructure here is attracting a lot of people. Reputed builders like Blacksmith developer, Kukreja construction group and National Builder Nishant have various projects in Vashi, while many constructions are in the pipeline. The residential property rates in Vashi are in the range of Rs 1500 to Rs 2500 sq.ft, while rental rates are in the range of Rs 3 to Rs 15 sq.ft pm.
The commercial market in Vashi is also becoming. Several companies are shifting to Vashi from various locations while a number of commercial complexes are already present, more commercial projects are coming up. In the commercial sector also. All the reputed builders are involved in many projects. The commercial rates are in the range of Rs 15 to Rs 60 sq.ft pm.
PROPERTY MONITOR – GOREGAON
Goregaon, known as Land of Tabelas, is located between the well developed suburbs of Andheri and Borivali. Goregaon is witnessing a boom in both residential as well as commercial developments. Goregaon enjoys the distinction of being the greenest suburbs of Mumbai, which is one of the reasons for its fast development. Several residential and commercial projects have come up in Goregaon-Borivali belt within the last two years. Due to its proximity to Bandra-Kurla complex and the low property rates as compared to Andheri and Borivali, residential demands have always been high in Goregaon.
Goregaon is also one of the most developed industrial areas in Mumbai with many small, medium and large-scale industries in different segments like steel, engineering goods and plastic.
Goregaon is growing very rapidly as a residential area, especially the Goregaon-Borivali belt. Several residential projects by builders like Evershine Builder, Sales Gesco Corporation and Conwood Group are coming up. Other important facilities like retail markets, schools and colleges, reputed hospitals and restaurants are attracting the middle class segment. On the other hand, builders are also providing quality 2BHK apartments with essential amenities at affordable rates.
Residential Property Rates:
Locality Selling Rates [Rs /sq.ft] Rental Rates [Rs /sq.ft]
Min Max Min Max
Goregaon [e] 1800 2700 10 25
Goregaon [w] 1800 3000 12 25
Evershine Aangan, an 8-storey building, is coming up in Goregaon [w]. it is expected to be reay for possession by August 2003. The project, developed by Evershine Builder, has 2/3 BHK flats with modern amenities.
Vrindavan by Conwood Group of Companies is coming up in Goregaon [e]. it has 8 floors with 2 BHK flats and modern amenities.
Greater Eastern link by sales, Gesco Corporation Ltd., is located in Goregaon [w]. this is also an 8 storey building with 2 BHK flats and other amenities.
Due to fast developing residential areas, the commercial demand is also very high in Goregaon. The shopping malls like City Center & Washington Plaza are located in Goregaon [w]. A shopping mall, Dynamix SHAGUN, is coming up in Goregaon.
Commercial Property Rates:
Locality Selling Rates [Rs /sq.ft] Rental Rates [Rs /sq.ft.pm]
Min Max Min Max
Goregaon [e] 2500 3500 20 50
Goregaon [w] 2500 3500 20 50
New Commercial Projects:
Shagun shopping (Dynamix) offers 62000 sq.ft for retail market in Goregaon and is expected to be completed by December 2002.
Dhreej Consultancy is coming up in Malad on 72000 sq.ft & is expected to be complete in December 2002.
Mindspace by K.Raheja is another retail shopping complex. It is expected to be complete by 2003. It offers 3,50,000 sq.ft in Malad.
PROPERTY MONITOR – KANDIVALI
Kandivali, the western suburbs of Mumbai, has seen tremendous growth in residential sector in the past few years. Most of the real estate growth here has taken place to the east of the railway tracks. One of the biggest plus points of Kandivali is that it has adequate infrastructure facilities. Also exist here are facilities for shopping, entertainment, education and so on. Another reason for the fast development in Kandivali east is ample land availability.
In Sharp contrast, the construction activities in Kandivali West have been at a relatively slower rate, with a few projects coming up at scattered locations.
Thakur village locality adjacent to the Western Express Highway is becoming a preferred destination. This area has witnessed the maximum construction activities in recent times with over 1.5 to 1.6 million square feet of developed properties are likely to come into the market by the end of 2002. Experts are of the opinion that this the best time to book a flat at the stretch between S.V. road and the link road.
The commercial sector is also picking up due to the effect of fast residential development. a multiplex is coming in Thakur village near Challenge tower.
Rental Rates [Rs/sq.ft pm]
Locality Min Max
Kandivali [e] 4 16
Kandivali [w] 8 12
Malad 10 18
Dahisar 3 10
Thakur Village 2.5 8
RNA builder launched RNA Millennium Township in October 2001 in Kandivali [w]. project is spread over 20 Lac sq.ft of land, with 4000 flats of 1 & 2 BHK with different amenities.
Raj Residency 2, by Rajesh Builder, is coming up in Mahavir Nagar.
Trishul Tower by Trishul Group at Asha Nagar, Pancheel Enclave by Conwood Pvt. Ltd., Vasant Aradhana by Seth Group, Gorav Geet by Ravi Developers, Pradtik garden by J.N.J. group and RNA Royal by R.N.A builders by are some of the projects coming up in Dhanukarwadi and Charkop.
Rental Rates [Rs /sq.ft pm]
Locality Min Max
Kandivali [e] 5 25
Kandivali [w] 15 50
Malad 10 45
Dahisar 3 25
Thakur Village 10 20
Fulford India has taken 20000 sq.ft of space in Mindspace building at an approximate rate of Rs 42 /sq.ft pm in Malad.
ICICI Oneserve leased an office space of 45000 sq.ft in Mindspace at an approximate rate Rs 38 /sq.ft pm in Malad.
Ocwen Financials leased an office space of 50000 sq.ft in Mindspace, at an approximate rate Rs 50 /sq.ft. pm.