Stability intact as Office Demands Picks Up
Office demand picks up while the retail and residential sector sees a lukewarm response, says a recent report by Jones Lang LaSalle India.
Office demand witnessed signs of improvement in the month of May. In line with the expectations the submarkets such as SBD, BKC and Navi Mumbai witnessed healthy transactions activities.
Important to mention, this month recorded robust sale transactions by select pool of occupiers who were keen on taking up space in projects with larger floor plates. Consolidation and relocation of office space emerged out to be the driving force behind the heavy number of transactions.
Vacancy rates reduced minimally across select submarkets in the month. Subsequently, Navi Mumbai submarket, which witnessed the transactions with higher floor plates, helped vacancy rates to fall visibly. Johnson & Johnson leasing space at SBD North and Barclays renting space at Western Suburbs were the notable transactions during May. In addition, DHFL bought space at SBD BKC. Suvidha Square in SBD North submarket got operational in the month. Rents and capital values both remained unaltered during May.
Mumbai’s high street retail space especially Bandra linking road saw lukewarm demand helping high street retail to grow during May. However select retailers considered occupying spaces in quality retail malls. Select foreign brands were seen considering entering into the Mumbai retail market. Major transactions in May included Creative Lifestyle leasing space at Suburbs and Go Fashion taking up space at Vashi.
There were no new completions during this month. Rents and capital values both continued to remain stable across the city in May.
The demand for residential sector continued to remain off beat during the month.
As a result, few developers came up with attractive offers during the festive season by offering some amount of gold to the buyers along with the purchase of the flat. Also, developers continued limited period offers such as 20-80 schemes to gain momentum in sales.
Treon by Ajmera Group and Desai Classic by Spark Developers both at Wadala and Hubtown Seasons by Hubtown at Chembur were the new launches in May. Rents continued to remain stable over the month. Capital values in Mumbai remained stable with select precincts such as Wadala, Ghodbunder Road in Thane and Kharghar gaining some appreciation mainly due to the upcoming infrastructure projects.
by Shilpa Sachdev for The FreePress Journal
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