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Under Construction
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.