Monthly Real Estate Monitor to Mumbai - December 2012

By JLL India

Office..!

In November, 2012 the leasing volumes increased marginally. As some newly operational buildings had low occupancy, there was an overall increase in vacancy. The buildings that became operational in November included Pinnacle Business Bay in Andheri East (SBD North), Neelkanth Business Park in Vidyavihar (eastern suburbs), Building 3 of Nesco IT Park in Goregaon (western suburbs) and Star Hub A & B in Andheri East (western suburbs).

Nesco IT Park was the only operational project with good occupancy levels. The key transactions during the month included JM Financial leasing space in Cnergy in Prabhadevi, Volkswagen leasing space in Silver Utopia in Andheri East and Tata Projects leasing space in Hiranandani Knowledge Park in Powai.

Rents and capital values remained stable in every submarket. Investors in yield-based office space assets continued to focus on completed properties or those that were ready for fit-out.

Retail..!

The retail demand witnessed marginal recovery despite the relaxation in FDI (Foriegn Direct Investment) norms in multibrand retail. High streets and select quality malls continued to see improved leasing activity in November, 2012.

Vacancy declined slightly due moderate absorption in certain precincts of the city over the month. The key leases in November included AND leasing space in Oberoi Mall in Goregaon, Fila leasing space in Infiniti II Mall in Malad and Kenneth Cole leasing space in Market City Mall.

Rents remained stable in malls whilst the high streets recorded a marginal increase in rents during the month. In addition, the capital values of malls and high streets remained stable.

Residential..!

Residential sales remained moderate in November, 2012. However, good demand was seen for certain projects in a few of Mumbai’s submarkets during the month.

There were a good number of residential projects launched. The new launches in November included the Levels project in Malad East by Kanakia Spaces, Meridia in Kurla by Omkar Realtors & Developers, Lalani Grandeur in Goregaon East by Lalani Group and a new project in Oshiwara by Ahuja Constructions. Rents remained largely unaltered, except in a few places, such as Ghodbunder Road in Thane and emerging locations in Navi Mumbai.

Capital values remained mostly stable but increased marginally in a few precincts. Most developers offered discounts for a limited period during the festive season, keeping pressure on the growth of capital values.

 INFRASTRUCTURE ONGOING..!

**  The Church Gate Virar Elevated Rail corridor project has been approved.

** Maharashtra’s state government raised the FSI (Floor Space Index) limits for township development during the month to encourage the growth of new economic hubs.

Office	Rents	Capital Value
Key  Areas	Rs. per sq ft per month	Rs. per sq ft
Lower Parel	150 to180	19,000 to 23,000
BKC	250 to 350	25,000 to 35,000
Andheri	100 to150	9,000 to15,000
Goregaon toMalad	80 to 100	8,000 to10,000
Wagle Estate	45 to 60	5,000 to 6,000
Thane toBelapur Road	40 to 55	5,000 to 6,000
Retail	Rents	Capital Value
Key Areas	Rs. per sq ft per month	Rs. per sq ft
Lower Parel	250 to 350	22,000 to 32,000
Malad	160 to 250	12,000 to 20,000
Ghatkopar	140 to 220	10,000 to18,000
Mulund	120 to 200	10,000 to16,000
Thane	100 to160	8,000 to 14,000
Navi Mumbai	70 to150	7,000 to 12,000
Residential	Rents	Capital Value
Key Areas	Rs. per month for a 1,000 sq ft 2 BHK Flats	Rs. per sq ft
Lower Parel	70,000 to 95,000	23,000 to 32,000
Wadala	40,000 to 55,000	14,500 to17,000
Andheri	35,000 to 50,000	11,000 to 20,000
Ghatkopar	35,000 to 45,000	9,500 to12,000
Ghodbunder Road	12,000 to 20,000	5,500 to 8,500
Kharghar	12,000 to 20,000	4,800 to 7,000

For more information about JLL India research

Ashutosh Limaye

Head, Research and REIS

ashutosh.limaye@ap.jll.com

+91 98211 07054

Trivita Roy

Assistant Vice President, Research

trivita.roy@ap.jll.com

+91 40 4040 9100

 Web sites: www.ap.joneslanglasalle.com , www.joneslanglasalle.co.in

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