Top Reason To Invest In Commercial Real Estate In Mumbai

Best Reasons To Make Investment In Commercial Properties


Commercial Properties in Mumbai


The evolving real estate ecosystem in Mumbai has been showing good commercial property investment prospects. So, check out the main reasons to invest in commercial properties in Mumbai.

The commercial property investment means buying small shops, office spaces, retail stores, or more dedicated categories such as warehouses, industrial spaces, etc,, and get consistent returns through rents or reselling the property when the market is up.


The investment in the commercial properties is best known for its-

  • Attractive Rental Rates

  • High Rental Yields

  • Capital Appreciation

  • A Positive & Less Specific Demand

  • Low Vacancy Rate And Impact


But still, the commercial real estate properties outrank the residential properties by giving comparatively double returns. 


Provided that a broader outlook on the entire commercial real estate ecosystem is considered. This involves the important factors that decide positive return from commercial property investments such as-

  • Property Valuation

  • Market Dynamics  

  • Who is Managing The property

  • No of Units

  • Future Growth of the region

  • Location


The existing established commercial centers in Mumbai, there are some emerging commercial centers in the surrounding regions with rapidly growing infrastructure. Navi Mumbai, Powai, and Thane and commercial centers in the eastern suburbs are emerging hubs in Mumbai. 


All the commercial hubs Have the benefits such as-

  • Sound Connectivity

  • Advanced Infrastructure Projects

  • Good Demand For Commercial Spaces

  • Growing Economic activities

  • Many Potential Locations For Future Growth


With the more demand for commercial space in the region along with the advanced infrastructure projects, these locations are perfect for investment in commercial property in Mumbai. 


Growth For Every Commercial Property Segment



Office Spaces:


Over the last decade, the average returns from the office space in Mumbai have been 8-12% along with significant rental yields. 


Office Space Commercial Property


In Mumbai, there have been increasing office space investment trends. Currently, The private equity investment in office spaces in Mumbai has been all-time high since 2011. 


BKC & Navi Mumbai and the Thane region locations have been set for good returns in upcoming years considering the favorable real estate ecosystem.


Investment in Warehouses:


The demand for warehouse spaces has been sharply increasing in Mumbai for three primary reasons- Manufacturing, Imports/Exports, and the high consumption pushed by eCommerce.


Warehouses Commercial Properties


Warehousing cluster Major warehousing locations in Mumbai:


Bhiwandi: Mankoli, Kalher, Kasheli, Dapode, Padgha, Vashere, Vadpe, Saape, Lonad, Bhavale, Sawad Naka, Dohole, Sonale, Anjurphatta


Panvel:  Palaspe, Uran Road, Taloja, Patalganga


From 2017-2020 there was around 69% growth in the Warehouse transaction in Mumbai. This is the highest number among all the Indian cities.


Investment in Retail Spaces:

The key location for the investment in the real estate is Lower Parel, Andheri, Colaba and Bandra.


Retail Space Commercial Properties


The Retail landscape in Mumbai is mainly driven by the emerging eCommerce industry and the new innovative ways of customer experience. The flexible leasing terms and design conversions have been the key to the successful investment in the retail spaces in Mumbai.


Promising Infrastructure Growth:

The advanced infrastructure projects in Mumbai will have a positive impact on the commercial real estate market because -


  • The infrastructure projects will scale up the economic growth in the entire Mumbai MMR region.

  • New connectivity networks will open up new markets with cost-effective investments and positive growth in the future. 

  • Infrastructure corridors will create a good economic impact on the regional belts

  • Establishment of new industries with increased commercial property investment avenues.


Positive Future Outlook:

The DCPR, 2032 is an aspiring plan to transform Mumbai city on the economic landscape. The plan has proposed several approaches to scale up the commercial development in the key area of Mumbai.


Future Outlook Commercial Properties


Boost to Mumbai Commercial Real Estate Sector through -


  • Increasing the permissible Floor Space Index (FSI)

  • Additional FSI for IT, ITES, Smart Fintech Centres, Biotechnology Centres

  • Through re-development of cotton textile mill lands

  • Conversion of industrial plot 


The development of the Special Development Zones in the various emerging parts of the city makes it a good prospect for commercial real estate investment in the future.


Conclusion:

So above I have mentioned top reason to invest in commercial real estate in Mumbai.

Location: Asia

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