Mumbai beats NCR in commercial realty

By Accommodation Times News Service

Central Mumbai has emerged as the country’s most attractive investment destination for office properties with 19% net annual return as prices are expected to rise 63% and rentals by 47% over five years, according to global real estate consultant Knight Frank report. Opposite to this the NCR region returns on investment in commercial properties expected to fetch one of the lowest return of 10%. The report compares the business district of Delhi and Mumbai states that peripheral business districts in Noida and Gurgaon will yield 11% return per annum and 19% per annum return, Mumbai central district which comprises Parel, Lower Parel, Dadar, Prabhadevi will yield the best return on investment in the country.

According to the consultant, Mumbai will give a return of 15%. Availability of talent, conducive business environment, international air connectivity, and presence of prominent stock and commodity exchanges along with headquarters of several banks from the backbone of the financial industry in Mumbai, the consultant said. India’s financial capital’s office space has seen highest occupancy of 26% from the banking, financial services and insurance sector. While opposite to this Delhi/NCR region will witness a subdued return of 10%. Around 50% of the expected supply to be added during 2013-17. However the vacancy levels are also expected to peak before stabilizing at 18.8% by 2017. The report said as the economy is likely to revive in the coming years, the demand for office space in Mumbai and Delhi will increase.





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