Monthly Real Estate Monitor May 2012 – Mumbai By JLL India

A monthly (May 2012) Snapshot of what is happening in the Indian real estate market of  seven major cities By Jones Lang LaSalle India (JLL India)

The major cities are..!
1. Chennai
2. Mumbai
3. Hyderabad
4. Bangalore
5. Kolkata
6. Delhi
7 .Pune
.
Mumbai City..!

Office Markets..!

May witnessed moderate leasing activity on the back of stable demand for office space in Mumbai. Tower 3 of Indiabulls Finance Center, located in the SBD
Central sub-market, commenced operations in May, 2012  with about 30 to 40% occupancy. Vacancy levels recorded a marginal increase during the month. German Remedies and UBM leased space in Times Square and Mot McDonalds leased space in Skyline Icon, both at Andheri (East).

Office
Rents
Capital Value
Key Precincts
INR per sq ft per month
INR per sq ft
Lower Parel
150-180
19,000 -23,000
BKC
250 - 350
25,000 -35,000
Andheri
100 - 150
9,000 – 15,000
Goregaon-Malad
80 - 100
8,000 -10,000
Wagle Estate
45 - 60
5,000 – 6,000
Thane-Belapur Road
40 - 55
5,000 – 6,000

Rents remained stable during the month on the back of cautious sentiment prevailing amongst office occupiers. Capital values also remained stable during the month, mirroring the rental value trend and thereby retaining yield at
previous month's levels.

Retail Market..!

Leasing activity was moderate during the month but was more directed towards good quality malls. With marginal leasing activity and limited fresh supply of
malls, vacancy levels declined marginally in May, 2012.

Retail
Rents
Capital Value
Key Precincts
INR per sq ft per month
INR per sq ft
Lower Parel
250 - 350
22,000 – 32,000
Malad
160 - 250
12,000 – 20,000
Ghatkopar
140 - 220
10,000 - 18,000
Mulund
120 - 200
10,000 – 16,000
Thane
100 - 160
8,000 – 14,000
Navi Mumbai
70 - 150
7,000 – 12,000

There was no new completion in the month. Rents in the malls remained stable at the previous month’s level due to moderate demand from retailers.

Capital values also remained stable at the previous month’s level due to the uncertain business climate &modest investor sentiment.

Residential Market..!

Sales of residential units in Mumbai remained constrained during the month. Indiabulls Blu, located at Worli, and the new tower in the Runwal Greens project located at Mulund, were launched in May, 2012
.
With a sustained increase in capital values keeping most potential buyers at bay, rents continued to record a marginal rise during the May month.

Residential
Rents
Capital Value
Key Precincts
INR per month for a 1,000 sq ft 2BHK apartment
INR per sq ft
Lower Parel
75,000 - 90,000
23,000 – 30,000
Wadala
40,000 - 55,000
14,500 – 16,000
Andheri
35,000 – 50,000
10,000 – 16,000
Ghatkopar
35,000 – 45,000
9,500 – 11,000
Ghodbunder Road
12,000-25,000
5,500 – 7,000
Kharghar
10,000-15,000
4,500 – 6,000

Capital values in Mumbai have witnessed a sustained rising trend on the back of new amendments to the Development Control Regulation Act.


INFRASTRUCTURE ONGOING ..!

* Santacruz – Chembur Link Road (SCLR): This arterial road (6.45 km) will connect the Western Express Highway & Eastern Express Highway. The project is expected to be
completed by end-2012.

  • Mumbai Metro Rail: The 12 Km stretch of Phase 1 from Versova to Ghatkopar is expected to become operational by  early 2013, improving east-west connectivity and providing impetus to Andheri.

About Jones Lang LaSalle..!

Jones Lang LaSalle (JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of above USD 360 crore, JLL serves clients in 70 countries from above 1,000 locations worldwide, including 200 corporate offices.

The firm is an industry leader in property & corporate facility management services, with a portfolio of approximately 180 crore square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest & most diverse in real estate with USD 4,790 crore of assets under management.

JLL has over 50 years of experience in Asia Pacific, with over 20,800 employees operating in about 80 offices in 13 countries across the region.

For further information, please visit  www.ap.joneslanglasalle.com


About JLL India..!
Jones Lang LaSalle is India’s (JLL India) premier &  largest professional services firm specializing in real estate. With an extensive geographic footprint across eleven cities (Ahmedabad, Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of over 4800, the company provides investors, developers, local corporate & MNCs (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.

For further information, please visit  www.joneslanglasalle.co.in

For more information about our research

Mr. Ashutosh Limaye
Head, Research and REIS
ashutosh.limaye@ap.jll.com
+91 98211 07054

Mr. Trivita Roy
Manager, Research
trivita.roy@ap.jll.com
+91 40 4040 9100

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