A
novel idea to change the cityscape
Mumbai
has remained the financial capital of India and is known for its
industries and financial institutions. There have been a setback to
the textile industry due to trade unions, which existed a decade ago,
but then the life in Mumbai has moved on and many of these textile
premises have now become residential and commercial complexes
bringing a change to the cityscape of Mumbai. In spite of all these
developments the burgeoning population of Mumbai and the rapid
industrialization needs a lot more attention. The core city has been
suffering from influx of people coming for jobs from neighboring
states and the infrastructure, which was then created, is becoming
problematic and not sufficient.
The
idea of creating a new business complex in Mumbai was to ease the
congestion and the expansion of South Mumbai where a spurt in
establishment of commercial activities and business were witnessed.
Thus, the MMRDA gave shape to a distinct micro market. The Bandra
Kurla complex with the expectation to ensure that further development
of business will take place in this segment. Though the economy world
over has not been that encouraging this year affecting the real
estate sector, the commercial
properties in BKC
has been showing positive results. Many organizations from the
financial sector including the main offices of commercial and
nationalized banks to the national stock exchange have made it their
hub.
Property
demand in BKC
There
is an increase in the demand for space in this complex which was seen
in the last two quarters compared to the previous year. However, it
has been observed that the demand is more for large commercial spaces
than for the smaller ones. Though some of the properties in this
complex are owned by corporate which have made substantial profits
out of their operations, many are leased by corporate which have
begun to realize that this is going to be the most preferred
destination for commercial activities in Mumbai in the near future.
Work is in progress in some of the upcoming projects in BKC which
only substantiate that the commercial
properties in BKC hold
a lot of promises for the future.
Positives
in BKC
It
is believed that there is a consolidation going to happen wherein
with value options becoming harder, lesser priced choices in the
nearby vicinity may be the option for some tenants. If there are any
forward movements in the economy, then the hesitantly waiting small
tenants may move to the commercial
properties in BKC,
which is to be seen. As such, the rentals in these complexes have
begun to stabilize and it is likely that the recent decisions in
parliament on the implementation of FDI in retail and proposals for
FDI in real estate, the policy of which is still to be seen may
infuse more funds to the market triggering an increase in commercial
activity.
Future
progress
Many
commercial
properties in BKC
are in the progressive stage like the headquarters of some of the
corporate houses, luxury hotels, malls and many more which are likely
to be completed in 2013 and 2014. This will add to the prominence of
BKC leading to further growth. The MMRDA has planned solutions to
some major issues like how to tackle the increased traffic and
public. The complex which already has a large constructed office
space area and additional square feet to be completed in the first
quarter 2013, may show more promise in accommodating the additional
space.
Multinational
companies, banks and large corporate houses have already set up their
offices in BKC. Besides the new Foreign Direct Investment (FDI) and
large homegrown conglomerates of India, which have come up in the la
decade, even most of the older big businesses are shifting their
attention from South Mumbai to BKC. With the coming up of diamond
traders into the scene
at BKC,
its fate has been sealed and it is set to become one of the biggest
commercial districts in the Asia Pacific region.
Authors
Note:
Bill
is involved in selling and leasing commercial properties in BKC. He
often suggests most of his clients about renting or purchasing
commercial
properties in BKC.
The geographical location of the complex and the facilities provided
attracted most of his clients to this complex.
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