Mumbai the financial and commercial capital of India spearhead the economic growth bandwagon of India and so does its real estate markets.

The city has always been the first option for foreign investors who want to invest in India. Most of the corporate addresses of Indian as well as multinational companies are in Mumbai. This most populous metropolitan of India has always fared ahead of other cities in infrastructural facilities and availability of workforce.

Mumbai Property Rental Market - A Perspective

Due to the growing investments in the city, mostly in the IT, ITES, BPO sectors; coupled with revolutionary business expansions in the retail market, Mumbai is booming with activity. As more and more companies choose to set offices in Mumbai, there is a growing demand for commercial office space rentals. Most of the office spaces in Mumbai and also financial institutions and banks are taken by the companies on lease. This has created a larger base for commercial rental properties in Mumbai.

All this evident from the statistics which say that the rental values in Mumbai has increased sharply between 10 and 25 per cent and between 5 and 10 per cent in the last few years. Overall, South Mumbai saw a rise of 25 per cent in rental prices while the suburbs (from Bandra to Versova) saw an astounding rise of up to 50 per cent..

Subsequently, with rise in the number of companies operating from Mumbai, there has been a steady increase in the workforce, many of whom have shifted base to the city on job grounds. This in turns has created the demand for residential rentals in Mumbai.

With capital values in the city at an all time high, the values of residential rentals in Mumbai of are also on the rise. Moreover, the continued growth of the office market in Mumbai has resulted in high demand for corporate housing in the prime and secondary residential districts.

Mumbai, also known as the fashion capital of India, is a centre for retail activity. However, the present times has seen resurgence in the sector with the relaxation of FDI. This has not only opened the doors for creating a competitive market with the foray of international brands, but has also changes the concept of shopping.

Shopping in retail shops is now gradually been replaced by the Mall culture. Mall constructions are now considered the most lucrative form of investments by the developers as they lease them out at convincingly high rates. Rental and capital values in the prime high-street locations are expected to increase marginally in the medium term due to strong absorption from retailers.

The Mumbai commercial market which comprises the central business district (CBD) of Nariman Point in south and the suburban business districts (SBD) of Bandra-Kurla Complex (BKC), Andheri-Kurla Complex, Powai and Malad in the north has now been decked with sprawling malls and trendy office buildings. The rental rates in the western suburbs of Bandra, Khar, Santa Cruz, Juhu and Andheri which is considered the most preferred locations, have increased between 30 and 40 per cent.

In spite of all odds, the most preferred areas for rentals now are Andheri, Goregaon and Kandivali even they can be considered of high value. While, areas like Vasai and Virar are hotspots for budget rentals.