Research &
Forecast Report
Mumbai | Office
April 2015
Increasing demand
trend led by IT/
ITeS occupiers
Office absorption in Mumbai increased by 9% QoQ, from
1.22 million sq ft in 4Q 2014 to 1.33 million sq ft in 1Q 2015.
The IT/ITeS sector dominated the citys office absorption
with over 57% (0.75 million sq ft) of the total absorption,
followed by BFSI with 0.38 million sq ft (28%) and pharma
with 0.07 million sq ft (5%). The maximum number of office
transactions were concluded in the western suburbs (0.54
million sq ft) including BKC, Andheri, Malad and Goregaon,
followed byNavi Mumbai (0.39 million sq ft), and the central
suburbs (0.25 million sq ft) including Vikhroli, Powai and
Kanjurmarg. This rise in demand is largely attributed to an
increase in the confidence of occupiers regarding overall
business growth in India and abroad.
In major office transactions during the quarter, E-clerx
took about 0.2 million sq ft in Mindspace SEZ by K Raheja
Corp located in Navi Mumbai. Other major deals included,
Housing.com and Edelweiss, took up 0.13 and 0.10 million
sq.ft. at Nomura by Hiranandani at Powai and Kohinoor City
by Kohinoor Group at Kurla, respectively.
1Q 2015 witnessed new supply of 0.6 million sq ft. The
projects accounting for this new supply were 0.2 million sq
ft of Lodha Supremus (located in I-Think Campus) by Lodha
Group; and 0.4 million sq ft of Century Greenspan (located
in Worli) developed by Century, an Aditya Birla Group
company. No new project was launched during the quarter
as developers were focusing to complete their existing
ventures, about 7.7 million sq ft of Grade A office supply is
available for fitout in Mumbai, among which majority of the
supply is located in the western suburbs (47%) including
BKC, Andheri (E), Malad and Goregaon/JVLR, followed by
Central Mumbai (16%) including Worli, Prabhadevi and
Lower Parel.
City Office Barometer
INDICATORS
1Q 2015
2Q 2015 F
Vacancy
Absorption
Construction
Rental Value
Capital Value
Rental Values
MICRO MARKETS
RENTAL
VALUE*
% CHANGE
QoQ
YoY
CBD**
200 - 230
5%
-7%
Worli/Prabhadevi
185 - 225
0%
2%
Lower Parel
145 - 190
0%
4%
BKC
225 - 320
0%
0%
Kalina
150 - 200
0%
-9%
Goregaon / JVLR
100 - 110
0%
10%
Andheri East
80 - 130
0%
-3%
Malad
80 - 100
0%
5%
Powai
120 - 130
4%
13%
Navi Mumbai
60 - 100
0%
22%
Thane / LBS
60 - 110
0%
13%
*Indicative Grade A rents in INR per SF per month
**Nariman Point, Ballard Estate & Fort
Research & Forecast Report | April 2015 | Colliers International
2.50
2.00
1.50
1.00
1Q 2015
4Q 2014
3Q 2014
2Q 2014
1Q 2014
Average Rental And Capital Value Trend
30,000
Forecast
250
25,000
200
20,000
150
15,000
100
10,000
50
5,000
1Q 2017F
1Q 2016F
1Q 2015
1Q 2014
1Q 2013
1Q 2012
1Q 2011
1Q 2010
0
1Q 2008
Top 5 Transactions of the Quarter
CLIENT
BUILDING NAME
E-clerx
Mindspace SEZ
Housing.com
AREA (SF)
LOCATION
LEASE / SALE
200,000
Navi Mumbai
Lease
Nomura
130,000
Powai
Lease
Edelweiss
Kohinoor City
100,000
Kurla
Sale
L&T infotech
Mindspace SEZ
90,000
Navi Mumbai
Lease
Capegemini
Gigaplex
85,000
Navi Mumbai
Lease
AREA (SF)
LOCATION
POSSESSION
Key Under Construction Projects
BUILDING NAME
DEVELOPER
Seawood Grand Central Tower
I & II
L & T Infrastructure
1,350,000
Navi Mumbai
2015
Godrej BKC
Godrej Group
1,200,000
BKC
2015
Kohinoor Square
Kohinoor Group
800,000
Dadar
2015
Notes:
1. Office Market: The major business locations in Mumbai are the CBD (Nariman Point, Fort and Ballard Estate), Central Mumbai (Worli, Lower Parel and Parel), Bandra Kurla
Complex (BKC) and Andheri Kurla stretch. Powai, Malad and Vashi are the preferred IT/ ITES destinations, while Airoli at Navi Mumbai and Lal Bahadur Shastri Marg are
emerging as new office and IT/ITES submakets.
2. Rents/Capital Value: Market average of indicative asking price for Grade A office space.
3. Available Supply: Total Grade A office space being marketed for sale or lease in surveyed quarter.
4. City Barometer: Represents increase, decrease or stable scenario; as compared to previous quarter.
5. All the figures in the report is based on market information as on 25th March 2015.
Research & Forecast Report | April 2015 | Colliers International
Captial Values INR Per SF
300
Rental Values INR Per SF Per Month
For the last 4 consecutive quarters, there has been an
increase in the absorption of office real estate. This is likely
to continue on the back of an improving economy and
demand from IT/ITeS and BFSI sectors. The markets are
also witnessing a clear price segmentation with tenants
being less price sensitive in prime markets like CBD and
BKC. Developers are however averse to adding new stock
on speculative basis. These factors in the long run will result
in an upward pressure on rentals due to diminishing gap
between supply and demand.
4Q 2013
Colliers View
3Q 2013
1Q 2013
0.00
2Q 2013
0.50
1Q 2009
The New Development Plan of Mumbai 2014-34 was
unveiled by the MCGM (The Municipal Corporation of
Greater Mumbai). Development Plan 2034, which will
remain in place for 20 years, has suggested taking an areawise view on FSI, which may range from a minimum 2.5
to as much as 8 for areas closer to transport hubs (railway,
metro stations, etc.) or business districts.
Quarter Wise Absorption
Million Sq.ft
Despite a rise in demand, rental values remained
unchanged in most of the micro markets, except in CBD
and Powai where rents rose by 4% to 5% QoQ. Capital values
remained stable in all of the micro markets.
Primary Authors:
502
67 countries on
6 continents
United States: 140
Canada: 31
Latin America: 24
199
EMEA: 108
Surabhi Arora
Associate Director | Research
+91 124 456 7500
surabhi.arora@colliers.com
Sachin Sharma
Manager | Research
Amit Oberoi I National Director
Valuation & Advisory Services & Research
For Oce Services:
Mumbai: George Mckay I South Asia Director
george.mckay@colliers.com
Delhi / NCR: Vikas Kalia | National Director
vikas.kalia@colliers.com
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billion in
annual revenue
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billion square feet
under management
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professionals
About Colliers International
colliers.com
2015
Bengaluru: Goutam Chakraborty I Director
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