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The Commercial under construction market in Mumbai is
more driven by Investors then actual users. Most of the
office spaces leased out by Corporate and MNC's across
Mumbai is owned by High Net Worth Individuals who enjoy
buying property at Under Construction or while the
builder has launched a building in Prime Location.

This not only gives the investors dual returns but a
fantastic money multiplying machine over the years. The
average lease rental returns in Mumbai is around 9 to
12% and an average cost of the property can be recovered
in a mere 100 to 125 months for sure.
The present boom which has been on going from the
past 2 years, has encouraged many investors to return
back into the real estate market and start investing
again.
The downside to investments in under construction
commercial properties is that, if there is a delay in
construction and the project has a slow builder then
your calculations and cash flow can go for a toss.
Usually, most of the builders making buildings in prime
locations are pretty conscious of what they are doing
and the investors are very concerned about day to day
developments.
The other downside is that when the markets fall and
crash the commercial market is severely effected save
and except in case where your property is already leased
for a term of 3 to 5 years and you have a good contract
then you do not have to worry.
Presently, in July 2007, there are limited
commercial under construction projects which are nearing
completion and there is a perceived space crunch. The
main properties will shape up by the 1st and 2nd
Quarters of next year and a lot of Mill Land properties
will come up by the year 2008 and 2009 respectively.
If you are planning to invest in real estate
commercial properties or if you choose to pick up an
office on outright purchase, please feel free to mail
your requirement on
ssadh@realestatemumbai.com and we will revert with
all potential properties.
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