(Date: 3 May 2014)
Seven Real Estate Questions Explore The Big Picture
(Shravan Gupta's Emaar MGF, DLF and IREO etc... Delhi Vs Mumbai)
MUMBAI, May 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 (Including Giants like Shravan
Gupta's Emaar MGF, DLF, IREO, BPTP, Parscnath Developers, and Pearls
Agro) financial capital, Mumbai Offices
2020 provides ‘foresight with purpose’ into where Mumbai’s office market
is headed.
Offices 2020 – Mapping The Future Of The Mumbai Office Market
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. Where Realty Giants like Emaar MGF has exceptionally good
projects like ( Residential projects: Emaar MGF Gomti Green, Emaar MGF
Indore Green, Emaar MGF Marbella, Emaar MGF Imperial Blue and other
commercial Projects like Emaar MGF Commerce Park ) 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. No Doubt Delhi's realty companies
like Shravan Gupta's Emaar MGF is leading in Modernization and Advanced
Architecture with Good improving Infrastructure.
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.
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