‘Mumbai’s commercial real estate: 2015 was good, 2016 promises to be even better’: Niranjan Hiranandani

MUMBAI, 21 JANUARY, 2015: The segment of commercial real estate had a good year in 2015. Practically the entire year long, we have witnessed increasing  demand for work-spaces, back-end office spaces, retail-related spaces. Similarly, academics, health-care and entertainment-related spaces have also logged serious enquiries backed up by actual sales and leasing activities through 2015. Demand for Commercial Real Estate across India has been positive through 2015, and going into 2016 it looks likely that the momentum will increase.

In Mumbai and the Mumbai Metropolitan Region (MMR), demand for commercial real estate has been growing largely as a result of ‘consolidation’ and ‘growth’ by corporate entities, including MNCs. Consolidation has been witnessed in scenarios where the work-force of corporate entities have been working out of commercial spaces spread across various locations. The trend witnessed in 2015 was that increasing numbers of corporate entities wanted to ‘merge’ the work-spaces, by moving all the separate units into a single location. The requirement here was for locations with projects which would be in sync with the price-point that would suit the corporate entity; as also provide facilities and amenities that the corporate entity would require.

Going into 2016, this translates into means locations which can offer large floor plates as also ‘built to suit’ commercial real estate being all set to witness increased demand through the year. In the MMR, Thane and Panvel look like the ideal locations where commercial real estate demand will increase – and going by present indications, this demand will be successfully met.

Across the various industries that will pick up commercial real estate in 2016, the off-take by each will be different. So, the BFSI segment will have a different quantum of requirement as compared to IT and ITeS, again which will be different from regular corporate demand for offices (back-end offices and work spaces). The on-line retail industry (e-tailing) looks all set to invest in ‘brick and mortar’ by picking up commercial spaces, be it for display set-ups; storage and dispatch of goods or even for accommodating the new intake of human resources.

In 2016, positive economic sentiment will be reflected in growth-related leasing and buying of commercial spaces by business and corporate entities.

Niranjan Hiranandani is Founder & MD, Hiranandani Group. His recent initiative is Hiranandani Communities. He is the Founder and First President (West), National Real Estate Development Council (NAREDCO), which works under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India.

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