Seven Real Estate Questions Explore The Big Picture
MUMBAI, April 28, 2014: International property consultancy JLL India has released its latest research report ‘Offices 2020 – Mapping The Future Of The Mumbai Office Market’. Anticipating the changing trends of commercial real estate in India’s financial capital, Mumbai Offices 2020 provides ‘foresight with purpose’ into where Mumbai’s office market is headed.
A dynamic metropolis that is always growing, Mumbai alone contributes around 5% of India’s total GDP. This report provides insights on how the city of Mumbai is adapting itself to the increasingly competitive office real estate landscape in the country. In this incisive report, JLL India answers critical questions that existing and aspiring corporate real estate occupiers in Mumbai are asking today:
- What risk factors could potentially hold Mumbai back?
- How will the birth of new multiple CBDs affect Mumbai’s business environment?
- With office buildings in Mumbai’s traditional business districts ageing rapidly, what aspects should companies consider while contemplating relocation?
- What will be the effect of the changing workforce profile and technological advancements on Mumbai’s office landscape?
- Are tenure generalisations fading as the office market enters a stage of flux?
- Will the sustainability bandwagon effect apply to the entire industry?
- Will Maximum City be able to harvest the emerging growth opportunities by 2020?
Ramesh Nair, COO – Business, JLL India says, “”With this report, we reaffirm that Mumbai will continue to be acknowledged as the financial capital of India. We have established that high quality, iconic and well-positioned workspaces are going to be a key attraction, and that the sustainability agenda will not render Mumbai’s office stock entirely obsolescent just yet. We have also underscored the inevitable fact that limited infrastructure and high commuting times will lead to a number of mini-CBDs in Mumbai.”
Commenting on some of the leading concerns of commercial space stakeholders in Mumbai, Nair adds, “In the future, commercial space landlords will look at higher-quality partnerships, based around longer and fairer rental contracts. Also, corporates’ relocation decisions will majorly be based on CAPEX calculations.”
“Today’s mantra is definitely ‘collaborative space’. Campuses, in particular, are stressing the need for better environments to produce better outputs. Of course, good salaries are still the employees’ main motivation. However, progressive companies realise that it is innovative rather than functional office spaces that can help them in the war for talent. This is becoming a distinct trend in Mumbai”, he adds.
Cities such as Delhi and Chennai are increasingly competing with Mumbai. Infrastructure investment and other upgrade programs have resulted in some operations moving away from Mumbai. Delhi has declared its 10-year plan and is clearly making progress, while Bangalore is also emerging as a strong contender. Mumbai is also losing shipping and back-end financial jobs to Chennai.
Fortunately, Mumbai’s gravitational pull will remain strong over the next seven years, although the city will be increasingly challenged. It becomes imperative to proactively fulfil the needs of its stakeholders. However, will Mumbai remain the gateway to corporate India?
REPORT HIGHLIGHTS:
- A whopping 15,000 acres of land will be available for redevelopment, increasing the potential availability of quality new supply
- Grade A office supply will increase by a mammoth 33% over just 3 years
- Grade A office space in Mumbai will rise from current levels of 92 million sq. ft to 120 million sq. ft by 2017
- MMR (Mumbai Metropolitan Region) population will increase to 26.7 million people, thus providing a larger workforce pool
- The BFSI & IT Industries will continue to drive absorption and are expected to contribute over 60% to office space absorption in the city
- Space Density per person has fallen from 110 sq. ft to 85 sq. ft per person; this trend is expected to continue.
About JLL India
JLL is India’s premier and largest professional services firm specializing in real estate. With an extensive geographic footprint across 11 cities (Ahmedabad, Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of over 6800, the firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services including research, analytics, consultancy, transactions, project and development services, integrated facility management, property and asset management, sustainability, industrial, capital markets, residential, hotels, health care, senior living, education and retail advisory.
The firm was named the Best Property Consultancy in India (5 Star Winner) at the International Property Awards – Asia Pacific for 2012-13.
For further information, please visit www.joneslanglasalle.co.in