Commercial Real Estate Market in Mumbai: Andheri Takes Centre Stage

Commercial Real Estate Market in Mumbai: Andheri Takes Centre Stage
  • Office leasing in Q2 2023 in Mumbai stood at 1.3 mn. sq. ft
  • Monthly rentals in Andheri East at an average of INR 125/sqft are steadily growing at 2.9% YoY

In the bustling heart of India’s financial capital, Mumbai, the real estate market is experiencing an unprecedented surge. Mumbai’s real estate sector has long been hailed as one of India’s most vibrant, driven by a complex interplay of factors that have fuelled its growth over the years. The city’s commercial real estate landscape is poised for yet another remarkable chapter, characterized by escalating demands and innovative developments. According to the latest office report ‘CBRE India Office Figures Q2 2023’, office leasing in Apr-June ’23 in Mumbai stood at 1.3 mn. sq. ft. Key sectors that drove absorption included BFSI (31%), technology (28%), and engineering & manufacturing (13%) in April-June’23. The report further highlighted that Mumbai office space absorption was driven by medium-sized (10,000 – 50,000 sq. ft.) deals. Also, non-IT developments led the supply and absorption with 100% and 50% share respectively.

Government initiatives aimed at infrastructural development are further propelling commercial growth, creating a favourable environment for investors and businesses alike. The Mumbai Metropolitan Region Development Authority (MMRDA) has been instrumental in enhancing the city’s connectivity, weaving a web of new highways, metro lines, and transport links. This enhanced connectivity not only eases daily commutes but also opens up new areas for development, setting the stage for unprecedented real estate expansion. In a city where major micro markets such as Bandra-Kurla Complex, Nariman Point, Lower Parel, Worli, Thane, Airoli, Vikhroli and Goregaon are already witnessing a commercial growth; Andheri leads the pack for commercial investment due to its strategic location and infrastructural upgrades.

Mr. Aakash Patel, Director of Atul Projects, encapsulates the essence of Andheri’s allure as a commercial destination, stating, “Within the dynamic realm of commercial real estate in Mumbai, Andheri stands out as a hub of innovation and opportunity. It stands tall as one of the best places to invest in business spaces, where every square foot echoes the promise of profitable tomorrows due to its rising market and advantageous location. The monthly rentals in the area at an average of INR 125/sqft are steadily growing at 2.9% YoY.”

We have constructed some of the most elegant and iconic workspaces and our recent addition being Atul Second Avenue at Andheri East which is receiving a stupendous response from the investors alike.”

What sets Andheri apart is its exceptional connectivity, positioning it as a prime location for real estate investment. The recent introduction of the Mumbai Metro Lines 2A & 7 offers seamless connectivity and has revolutionized daily commutes, reducing travel times significantly. Proximity to the Chhatrapati Shivaji Maharaj International Airport has turned Andheri into a magnet for corporates seeking a strategic location, both for domestic operations and international business interactions.

Andheri’s seamless connectivity extends beyond metro lines, encompassing the Eastern and Western Express Highways. Strategic roads like the Andheri-Kurla Link Road and the Jogeshwari-Vikhroli Link Road (JVLR) ensure swift access to the western and central suburbs, making it an ideal choice for businesses and individuals alike. This accessibility factor has not only lured corporates but also made Andheri a favoured choice for those seeking convenient living options in the heart of the city.

In a city where real estate opportunities are as dynamic as the city itself, Andheri represents more than just a location; it embodies Mumbai’s spirit of advancement and innovation. As the commercial real estate market continues its upward trajectory, Andheri stands as a testament to Mumbai’s unwavering commitment to progress. In its bustling streets and towering buildings, it promises a future where every business venture finds its space to thrive, making it a shining beacon in Mumbai’s ever-evolving skyline.

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