Over View of the Commercial Real Estate Market in Mumbai
Mumbai is fast being recognized across the world as an IT and ITES hub. High literacy
levels, easy availability of intellectual talent at 50-60% lower cost as compared
to other international cities, better productivity and a time zone difference of
8-10 hours that makes it possible for offshore corporates to respond quickly since
processing is done through Mumbai during the night, are some factors that have made
Mumbai the most favoured destination to China, Singapore, Philippines, Ireland and
UK.
The S.T.P.I (Software Technology Parks India) is encouraging more and more IT Parks.
These building are specifically customized for IT and ITES corporates. Scalability,
large floor plates, large column free structures, ample space for a large number
of work stations, excellent infrastructure are the key attributes that make the
IT Park an attractive proposition.
Types of Office Spaces Available:
Office spaces available in the city range from 150 Sq.Ft. to 32000 Sq.Ft. in a single
floor plate, larger spaces are available on combined floor plates.
Office spaces are generally categorized as:
Location of major Commercial Hubs in the City:
Central business Districts in Mumbai are Located at Nariman Point, Fort, Ballard
Estate, Worli, Lower Parel, Bandra Kurla Complex, Santacruz East (Kalina), Andheri
East, Malad and Powai.
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Nature of Companies / MNCs In CBDs:
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Banking, Financial and FIIs, Manufacturing
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Nariman Point, Fort.
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Companies, Shipping, Law firms, Print Media Companies etc.
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Ballard Estate, Worli, Lower Parel.
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Infrastructure, Banking, Insurance, Media, IT, Software, Manufacturing Companies,
etc.
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Worli, Lower Parel, Bandra Kurla Complex, Andheri, Powai.
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Data Centers, Call Centers, Back Office Operations, Trading Companies etc.
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Lower Parel, Bandra Kurla Complex, Andheri, Powai, Malad.
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Apart from these locations the spread of commercial activity is dominant all over
the island city of Mumbai. The fast growing commercial areas are now shifting to
the suburbs like Bandra, Andheri, Malad, Powai, and the likes for the simple reason
being the proximity to residential location of the manpower and availability of
desired floor space at cheaper and affordable prices with a lot of options.
The other reason for the shift in the trend of commercial location is the saturation
of companies in the existing CBDs. This saturation has led to an overload on the
infrastructure provisions, like power, water etc. Since the local government is
unable to cope to the heavy demand a reverse trend has been observed in the existing
commercial markets with established companies moving towards the sub-urbs for a
much smoother business development.
Level of Infrastructure
The Mumbai Metropolitan Region Development Authority (MMRDA) is all set to kick
off the second leg of the World Bank-aided city transport development plan. The
Rs 4,526-crore project envisages 20 road works to improve the east-west traffic
in the city. Improvement is planned for 250 kms of roads to ensure smooth traffic
flow from the eastern suburbs to the west, by removing bottlenecks and encroachments.
The inadequacy of east-west connectivity has been a major constraint for the city.
The Mumbai Urban Infrastructure Project (MUIP), under which the road development
project will be carried out, has been recently cleared by the executive committee
of the MMRDA and the state government. The plan includes building 20 roads in the
western suburbs and widening 33 others. While Rs 1,258 crore has been sanctioned
for the eastern suburbs, Rs 723 crore has been allotted for the western suburbs.
The project is completely funded through internal borrowings and joint ventures.
The MMRDA has drawn up a Rs 2,000-crore blueprint to ensure free-flowing traffic.
The plan proposes 20 flyovers in the east-west corridors, elevated road-over-roads
and road-over-bridges to ensure smooth traffic flow. The project is to be completed
by 2006.
Power Supply:
Mumbai is the only city in India, which has the history of uninterrupted power supply
in the country. The two major companies supplying power to Mumbai are BSES and Tata
Power. The companies requiring back up power are often supported by private / rented
DG sets or UPS. There are a lot of data centers of international standards operational
in and around Mumbai with 100% uptime. Hence, power supply in Mumbai is not an issue
for any Company setting up operations.
Telecommunications:
Mumbai survives on telecommunications. Mentioned below are the list of service providers,
providing various services:
Cellular Services : Orange, BPL Mobile , Airtel, Reliance, Tata, MTNL.
Basic Telecommunication Services : MTNL, Hughes
Internet (ISDN, Lease Lines and Internet) : VSNL, DSL Dishnet, Satyam Technologies,
Roltanet, Reliance, MTNL, Hughes, BSES and High Speed Cable Internet.