COMMERCIAL

Over View of the Commercial Real Estate Market in Mumbai

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.
Nature of Companies / MNCs In CBDs:
Banking, Financial and FIIs, Manufacturing Nariman Point, Fort.
Companies, Shipping, Law firms, Print Media Companies etc. Ballard Estate, Worli, Lower Parel.
Infrastructure, Banking, Insurance, Media, IT, Software, Manufacturing Companies, etc. Worli, Lower Parel, Bandra Kurla Complex, Andheri, Powai.
Data Centers, Call Centers, Back Office Operations, Trading Companies etc. Lower Parel, Bandra Kurla Complex, Andheri, Powai, Malad.
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.