BKC and Parel rentals drop
Mumbai- With the rentals crashing down in BKC and Parel, it is the best time to set up offices in the region. The office rentals in these business districts have dipped drastically despite being known for high priced units.
The Bandra Kurla Complex has newer buildings coming up which were earlier known to be priced at Rs. 320 per sq ft per month. But owing to the price drop, they are currently starting from Rs. 250-Rs.260. Similarly, high-end buildings in the Parel belt which earlier were priced at Rs. 250 are now available for Rs. 120-Rs. 150.
As per the realty experts, the price drop is due to the oversupply and the economic slowdown. However, other neighboring areas and Lower Parel have been witnessing the growth of newer buildings given way to competition. There is about 30 percent vacancy in the belt.
Although BKC does not have many buildings, a large number of offices have been vacated in the area paving way for a rise in vacancy rates. The experts also state that the investors bought these office spaces for higher rates but are instead holding them rather than selling it away assuming that there will be a higher appreciation. Currently, these properties are rented out at a cheaper rate.
The properties in Parel belt are spread across Lower Parel, Elphinstone and neighboring areas with the rentals stooping down to Rs. 120 per sq ft per month. There were various queries sent to the real estate offices which revealed that the offices in newer and high end complexes are rented out for Rs 120 to Rs 150.
Perhaps, these rates are further negotiable and offices in popular established buildings like Indiabulls and others are offered for Rs. 150 to Rs. 170. Also most desperate owners are willing to settle down for even Rs. 100.
Similarly, the BKC has no much difference, as the stiff competition between office spaces on the CST Road and the University Road which is merely a km away have reduced rentals. A property in capital, the Trade Centre and the Parinee Crescenzo can be rented out for Rs. 225 to Rs 270. Henceforth, the price drop and the constant vacancies have compelled most of the owners to compromise on the rentals.
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