Nariman Point Office Rentals Soar 52% Since 2018, Knight Frank Projects 90% Growth by 2030
Real estate consultant Knight Frank India's report 'South Mumbai: A Renaissance' highlights a significant rise in office rentals at Nariman Point, which have increased by 52% since 2018. The report projects over 90% rental growth by 2030, driven by enhanc
Nariman PointOffice RentalsKnight FrankSouth MumbaiReal EstateReal Estate MumbaiOct 10, 2024
South Mumbai, particularly Nariman Point, is experiencing a renaissance driven by significant infrastructure improvements. Knight Frank's report, titled 'South Mumbai A Renaissance', highlights how these enhancements are set to boost the area's appeal for both businesses and investors. The report underscores the convergence of enhanced infrastructure and a robust residential market, which are strengthening Nariman Point's position as a premier commercial hub.
In the early 2000s, Nariman Point was Mumbai's premier business hub, with office rents rising steadily from ₹200 per sq ft in 2003 to ₹550 per sq ft in 2007. However, the global financial crisis and the growing popularity of the Bandra Kurla Complex (BKC) caused a decline in office rentals to ₹402 per sq ft in 2012. By 2018, the rental price further decreased to ₹375 per sq ft, which was significantly lower than the ₹833 per sq ft at BKC and ₹460 per sq ft in the NCR.
However, the tide has turned. By the first half of 2024, the top rental prices in Nariman Point surged to ₹569 per sq ft, surpassing the leading central business districts of Bengaluru (₹353 per sq ft) and the NCR (₹429 per sq ft). Between 2018 and the first half of 2024, top rental rates in Nariman Point increased by 52%, outpacing the 20% growth in BKC. In contrast, top rentals in Bengaluru and the NCR have declined by 4% and 7%, respectively.
Shishir Baijal, Chairman & Managing Director of Knight Frank India, commented, 'South Mumbai is witnessing a renaissance, spurred by the transformation of strategic infrastructure across the city. This renewed interest in premium office spaces is already reflected in rising property prices. The convergence of enhanced infrastructure and a strong residential market strengthens Nariman Point's standing as a premier commercial hub, creating promising opportunities for investors and businesses alike.'
As infrastructure-driven economic growth continues, more companies are expected to be drawn to the area, further contributing to its revitalization and long-term commercial sustainability. The report emphasizes that the ongoing infrastructure developments, such as improved transit-related facilities, are pivotal in driving this renaissance.
Frequently Asked Questions
What is the current maximum office rent at Nariman Point?
The current maximum office rent at Nariman Point is ₹569 per square foot.
How much has the office rent at Nariman Point increased since 2018?
The office rent at Nariman Point has increased by 52% since 2018.
What is the projected maximum office rent at Nariman Point by 2030?
The projected maximum office rent at Nariman Point by 2030 is ₹1,091 per square foot.
What factors are driving the renaissance of South Mumbai's commercial districts?
The renaissance of South Mumbai's commercial districts is driven by significant infrastructure improvements, enhanced transit-related facilities, and a robust residential market.
How does Nariman Point's current rental price compare to other major business districts in India?
Nariman Point's current rental price of ₹569 per sq ft surpasses leading central business districts of Bengaluru (₹353 per sq ft) and the NCR (₹429 per sq ft).
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