Among all of Mumbai’s office
sub-markets, Navi Mumbai enjoys the largest IT and ITeS-occupier footprint
By Mr. Ramesh Nair, JLL India
The common perception about Mumbai
is that though it is India’s financial capital, it has no major Information
Technology (IT) presence.
Although that is true for the Island City, the Navi
Mumbai sub-market more than makes up for Mumbai’s lack of a strong IT footprint.
In fact, IT companies are the largest occupiers in low-cost markets like Navi
Mumbai - as much as 76% of commercial space in Navi Mumbai is occupied by IT/
ITeS players.
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Mr. Ramesh Nair, JLL India
Area leased by different sectors in
Navi Mumbai
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Occupiers’ sector
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Share
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BFSI
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8%
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Consultancy Business
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1%
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IT & ITES
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76%
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Manufacturing / Industrial
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8%
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Miscellaneous
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3%
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Moreover, banks’ back offices / data
processing centres that fall under the BFSI classification prefer Navi Mumbai,
and many operate out of IT buildings.
A variety of reasons like this region’s
better infrastructure, lower office rentals, connectivity to Mumbai and other
areas in Mumbai metropolitan region (MMR) as also a high density of
professional and higher education institutes lead to this preference for Navi
Mumbai.
In the IT, ITes value chain,
business process outsourcing (BPO) call centres are most sensitive to costs, as
they operate on a $1 real estate cost strategy (i.e. the real estate rent of 1
square feet should not exceed the USD exchange value of Rs. 65). BPOs are followed by
knowledge process outsourcing (KPO) firms and software design firms, which
operate on slightly better margins.
In Navi Mumbai, software technology
parks of India (STPIs) and IT-special economic zones (SEZs) prove to be very
attractive for such IT/ ITeS players due to the inherent benefits in operating
out of these. That is the reason behind 95% occupiers being based out of STPIs
and IT-SEZs from the total office stock in Navi Mumbai.
The satellite city proves to be the
best possible rental sub-market for this sector. In the future too, this
sub-market will continue to have a strong IT footprint even if the rentals were
to rise.
Rental values (Grade A buildings) in
Mumbai’s top five micro-markets
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Location:
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Rentals (Rs. /sq ft/
month)
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CBD
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150 – 280
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SBD Central
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115 – 250
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SDB BKC
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85 – 320*
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SBD North
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70 – 150
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Western suburbs
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65 – 140
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Eastern suburbs
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60 – 140
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Thane and Navi Mumbai
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35 – 115
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About the author
Mr. Ramesh Nair is COO (Business &
International Director) at JLL India
For Media contact
Mr.
Arun Chitnis
Head
– Corporate Communications & Media Relations
JLL
India
Pune
411001.
Tel:
(020) 30930441 Fax: (020) 40196101
Mob:
+91 9657129999
Twitter: @JLLIndia
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