Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Mumbai the Best Place for Commercial Property

By Vinay Jain Subscribe to RSS | June 17th 2012 | Views:
loading
 
  



Unsure about the global economic sentiments and rising borrowing prices, there's some excellent news for tenants wanting to lease commercial area in Mumbai.

Probably for the primary time in Mumbai’s commercial property market there are not any takers for nearly 1.1 million sq ft or eleven lakh sq ft of ready commercial property in Mumbai, the highest level of vacancy within the town. The high vacancy in turn, has placed pressure on commercial rental rates that currently bit 2006 levels as per property consultants.

Global property consultant, Jones Lang Lasalle, Director, Mr. Ramesh Nair, stated that the highest quantum of commercial property lying vacant in Mumbai.

While unsure economic conditions have firms shying faraway from leasing area, one more reason is that the oversupply. In a bid to maximise use of the present land space, developers rushed to avail the inducement floor area index given by authorities beneath varied schemes like Info Technology Parks. With the result that there's a large quantity of area lying unsold and this has imposed pressure on leasing rates that is currently equal to the level of 2006. Before 2006, the number of Grade-A commercial areas was twenty nine million sq ft.

While the common vacancy across town is 20.5%, it varied in individual business districts. Nariman Point surrounds a vacancy of 100%, Lower Parel, Worli, Andheri, Borivali and Vikhroli have pure 24 percent vacancy, Bandra-Kurla advanced has sixteen percent and therefore the Thane-Belapur region has twenty eight percent vacancy.

Though rentals are fraught, several property developers who are underneath money stress are increasingly opting to selling their commercial areas. But, the developers are selective in selling their commercial property in Mumbai. If 100 percent possession are needed, they're going to sell forty percent and keep the sixty percent with them; otherwise they're going to lose management of the building. notwithstanding they sell half of their buildings, some consumers might not like that.

Ackruti City one of the well established developer of Mumbai is selling its three commercial property —Ackruti Star, Ackruti Viva and Ackruti Solaris in Andheri through a reduced deferred payment theme.

Wadhwa Group, one in all the most important unlisted realty firms in Mumbai, has lowered its rental rate moreover as selling floors in its soon-to-be finished ‘The Capital’ project within the Bandra-Kurla Complex.

You can see the overgrown demand in Mumbai’s commercial property. Mumbai has witnessed the supply of commercial area exceeding demand by the maximum amount as 200 percent. The vacancy levels have increased from 14 percent to 20.6 percent in Q1 2012.

The developers are experiencing the price pressure as a result of increase within the costs of cement and steel bars that increased by about twenty percent and twenty six percent, respectively. The shortfall of labour partially caused by Government’s numerous employment schemes is keeping cost of labour high. Plus, the parallel rise within the interest rates led to higher price of borrowings for the developers.

This is the most effective time for corporates to barter on rentals as several corporations are seen putting on hold their growth plans. If the area take-up is huge, developers are giving additional rent-free periods and free parking slots to the renter, aside from discounts in their expected rentals. On an average, builders are holding commercial units starting from 30-65%.

The development of commercial property in Mumbai, reeling beneath the pressure of vacant commercial units, huge debts and relaxing demand from the company sector are currently launching reasonable offices and enticing schemes. The mood is that of ‘withdrawal’ instead of growth for huge corporates.

Vinay Jain - About Author:
PropTiger is an independent real estate advisor with a pan-India presence. We aspire to be your first port of call if you want to buy a property in Mumbai.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/real-estate-articles/mumbai-the-best-place-for-commercial-property.htm

Related Real Estate Articles Subscribe to RSS

Reasons for hiring an expert real estate agent to invest in property
Published by Deepti on April 17th 2012 | Real Estate
Buying your dream home for the first time is an incredible learning experience. Today, with the help...
 
London property management services growing increasingly important
Published by John M. Alcorn on February 18th 2012 | Real Estate
Many landlords take property management for granted. But with rental prices at an all-time high and ...
 
Hire estate agents Marlow for smooth property deals
Published by Ricky Charles on January 4th 2012 | Real Estate
Many businesses have flourished and doomed but the real estate business has somehow managed to keep ...
 
Estate agents can help in investing in right property
Published by Margett Helms on May 5th 2012 | Real Estate
Estate agents play a key role in dealings of property. The majority of house sales in London are mad...
 
Buy residential property on rent
Published by Vicky Martin on June 18th 2012 | Real Estate
Never neglect tenant issues that are brought to your attention. This leads to dissatisfaction, late ...
 
How you can buy residential property on rent
Published by Glyn Jones on June 11th 2012 | Real Estate
Apartment buildings are more complex. Often, people are already living in the suites, and it simply ...
 
Get a good office property in Gurgaon
Published by Atul Sharma on May 21st 2012 | Real Estate
The article is based on real estate property in Gurgaon. It talks about how you can get a good prope...
 
The Roller Coaster Ride of Rental property Dubai
Published by Mark Castellino on December 1st 2011 | Real Estate
The best way to start up any business in Dubai is to find out the best location first then go for th...
 
How to find your perfect property
Published by Ramikenig on December 7th 2011 | Real Estate
With the Dubai property market experiencing a spike in sales prices over the last 3 months it is onc...
 
Decisions to be made during property restoration process
Published by Larry King on June 20th 2012 | Real Estate
As the restoration process proceeds, there are many decisions to be made including those relating to...
 
Mohali property offering plethora of investment options
Published by Deepti on April 12th 2012 | Real Estate
Mohali, often termed as the Eco town of Punjab, is emerging as the favorite place for property in...
 
Looking to buy a commercial property in Gurgaon?
Published by Mike Nicholson on March 20th 2012 | Real Estate
Do you want to have your office at a prominent location where you can proudly invite your clients? D...
 
Real Estate Agent can be a good Profit maker for your property
Published by Mayank Gandhi on February 28th 2012 | Real Estate
feedbackhere.com: We provide easy to find Real Estate Agent for consumers vendors to make searching ...
 
Bienes raices en Aruba can provide the answers to all your worries related to your property
Published by Sothebysrealty Aruba on March 16th 2012 | Real Estate
The best way to find property in Aruba is to get hold of a real estate agent in Aruba for the best r...
 
How to choose a good property in Bangalore
Published by Andy Wagon on February 15th 2012 | Real Estate
If you currently want a property and were looking for, then there are many references that can be us...
 
Finding property and buying it becomes with help of Real Estate Agents
Published by Melbourne Realestate on June 28th 2012 | Real Estate
If anything is done by the profession that creates a great impact. Same is in the case of real estat...
 
Assistance from a good estate agency is essential in property investment
Published by Glyn Jones on January 4th 2012 | Real Estate
The estate agents can help you with the property dealings. They can make it really very easy for you...
 
The demand of property in Delhi NCR
Published by Maaya on May 24th 2012 | Real Estate
Having an own land or property in Delhi NCR is like a dream, the prices of properties are increasing...
 
Letting agents and property to let
Published by Glyn Jones on December 6th 2011 | Real Estate
With the estate agents investing in the real estate market becomes really very easy. This allows you...
 
Why one should invest in property in Greece?
Published by Greekexchange on January 10th 2012 | Real Estate
Greece is one of the most beautiful places in the world; people from all over the world visit this c...