Nariman Point, Mumbai's historic business hub, is witnessing a revival in demand for office space despite being overshadowed by Bandra Kurla Complex (BKC) in recent years. With limited quality space, recent leases by foreign consulates and major companies are driving interest. Notable deals include the Polish Consulate's 3,000-square-foot lease in Nirmal Building and the German Consulate's 7,442-square-foot space in Hoechst House. Improved connectivity via the Coastal Road and Metro Line 3 has further fueled demand, pushing rents up by 8-10% this year. Experts anticipate continued growth, with projected new developments adding crucial office space to the area.
Nariman Point, a well-known business district in Mumbai, is experiencing a comeback after being eclipsed by the more modern Bandra Kurla Complex (BKC). In recent months, the demand for office space in Nariman Point has increased, while the availability of quality buildings remains limited. This resurgence can be attributed to several factors, including recent leases by foreign consulates and major companies, as well as improvements in connectivity that are drawing businesses back to this historic area.
Despite its smaller size compared to other commercial hubs, Nariman Point's limited supply of office space is driving interest. Recent notable transactions include the Polish Consulate leasing 3,000 square feet in Nirmal Building and the German Consulate taking 7,442 square feet in Hoechst House. The Chinese Consulate has also established an office in the area.
Several major firms and consulting companies are currently based in Nariman Point, including The Boston Consulting Group and Jefferies, with CJS Speciality Chemicals and Hind Offshore operating close by in Fort. Once a bustling center of finance and commerce in the 1970s and 80s, Nariman Point and nearby areas like Fort and Ballard Estate lost much of their appeal to BKC, where many top banks and companies chose to relocate due to its better planning and reduced traffic congestion.
Despite the transition, some significant players have retained their presence in Nariman Point. Reliance Industries, along with established law firms such as AZB & Partners and the Tata Group, continues to operate in the area. Experts believe plans by the Mumbai Metro Rail Corporation to auction a prime 4.2-acre plot could breathe new life into the local commercial real estate market, potentially allowing for the development of an additional 1.6 million square feet of office space.
Property agents anticipate that rents could soar to more than INR 1,090 per square foot, nearly double the current rate of around INR 570 per square foot. While BKC boasts rental prices of about INR 1,000 per square foot, many businesses are rediscovering the unique benefits and charm of Nariman Point, especially with improved access thanks to the 10.58-km Coastal Road and Metro Line 3 connecting SEEPZ and Colaba.
Between January and September of this year, around 40,000 square feet of office space leases were signed, not including renewed leases. Cushman & Wakefield predicts that this figure could reach 60,000 square feet by the year's end, a sharp increase from only 17,000 square feet leased in all of 2023. The growing demand has led to rental prices rising by 8-10% over the past year, now exceeding those in Bengaluru and the National Capital Region, which have rental rates of approximately INR 353 and INR 430 per square foot, respectively.
The renewed interest in Nariman Point highlights its lasting appeal as a choice location for businesses. As companies increasingly seek comfortable access to important financial and government entities, the commercial real estate market in the area is well-positioned for continued growth. Ongoing investment and development initiatives will play a crucial role in meeting the rising demand, enhancing the quality and availability of office spaces, and improving the overall infrastructure of Nariman Point.
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