From the first quarter of 2015, absorption of office spaces Mumbai have increased significantly. Let’s take a look at the reasons for the boom in renting commercial official space in the city:
- According to a report by JLL, in 2013, the net absorption of commercial spaces in Mumbai increased by 4.4% year-on-year to about 7 million square feet compared to 6.7 million in 2012
- In the first half of 2011, Mumbai was the topmost cities in terms of rate of office space absorption. This surge was primarily due to the availability of office spaces in the city. In case you are looking for office space on rent in Mumbai, then get in touch with us at https://www.smartworksoffice.com/
Till the end of 2013, companies mostly favoured suburban locations in Mumbai for leasing office spaces compared to the commercial business district. This shift was primarily driven by the high prices of commercial spaces in the prime business locations in the city. Moreover, the suburban landscape of the city was also supportive to the diverse preferences and demands of the organisations. Earlier, the largest office constituents in Mumbai comprised mainly of the financial, banking, and insurance sectors. However, now, with the increased presence of IT-ITES companies in the city, the low-cost office space destinations are high on demand.
- This transition in the commercial space landscape of the city and the improvement in infrastructure have attracted organisations from sectors that were under-represented in the business map of the city. Sub-Urban areas such as Navi Mumbai, Thane, and other areas of Eastern Mumbai such as Vikroli, Powai, and Kanjur Marg have witnessed an increased stock of commercial space for rent.
- In 2013, the office space vacancy in Mumbai dropped to 22.9%. During that year, the city witnessed a significant drop in office space vacancy in areas such as the Western Suburbs, SBD-Central, Navi Mumbai, Thane, and so on. On the other hand, during the same year, vacancy in Eastern Suburban areas and CBD rose. This was due to the availability of high-quality office spaces in these areas.
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