Knight Frank reported that Mumbai commercial realty has outperformed the National Capital Region. The property consultant’s report states that Mumbai is hotter than NCR for investment in commercial realty.
According to the recent report of Knight Frank, Central Mumbai has outperformed the National Capital Region for investment on office space properties. Mumbai commercial realty is the best investment destination as it assures 19 percent net annual return.
The property prices in the city are expected to grow by 63 percent. Similarly the rentals will grow by 47 percent, the report of Knight Frank adds.
On the other hand, investment in the NCR commercial realty would fetch around 10 percent returns. The returns from Noida and Gurgaon also will be not much different. These cities are expected to offer yearly returns by 11 percent.
Investment on Mumbai commercial realty will yield the highest returns, says Samantak Das. The chief economist at Knight Frank India adds that the returns will be around 19 percent.
Central District of Mumbai includes Dadar, Parel, Lower Parel and Prabhadevi. These areas are expected to produce the best returns to the investors. These areas remain the best investment destinations in the country, said Mr. Das.
According to the property consultant, the returns from investment in Mumbai’s (SBD-West) would be around 15 percent.
Favorable business conditions, availability of talent and easier access to the outer world through airports make Mumbai commercial realty one of the best in the country.
The presence of many stock and commodity exchanges, prominent banks’ headquarters, etc. is also added advantages of this city. These play key roles in the growth of commercial realty in Mumbai.
While one fourth of the office space absorption in Mumbai is by IT and ITeS segment. Another one fourth is by banking, financial services and insurance sector. The report also said that the demand for office space in both NCR and Mumbai is to rise in the coming years.