Mumbai prime office rentals down 4% : The Times of India

Mumbai:

TIMES NEWS NETWORK



Now, BKC Is City's De Facto Central Business District: Global Survey

With average prime district office rentals falling by 4% in the first quarter of 2015, Mumbai has performed better than just two cities in a global Jones Lang LaSalle survey , which was released on Thursday.

Only Sao Paulo and Moscow, with 5% and 24% depreciation, respectively , fared worse in the comparison between central business districts of leading cities across the world.

Mumbai figures among those global financial centres that saw a fall in prices. Moscow and Sao Paulo, which are also financial centres of these emerging economies, are in the red. Among the mature economies, only Brussels and Paris figure in the red and Frankfurt sits on the borderline. Most other cities such as Sydney , New York, Tokyo and London remain in the black.

“As demand for residential properties moves towards Mumbai's suburbs and farther away from the city centre, so does demand for office spaces.As part of that trend, BandraKurla Complex is now the de facto CBD of Mumbai,“ the report said. Brussels and Paris saw 4% and 3% depreciation, respectively. Frankfurt was the only city to see no change.London was the top performer with 12% rise in rents followed by Tokyo at 7%, Shanghai, Hong Kong and New York, all at 4%, Dubai 3% and Sydney 1%.

“The fall in Mumbai CBD's rentals could be due to a short term influence. The contrast in Mumbai's office market is that the city has 17% vacancy , whi ch is not healthy , but at the sa me time, a gentle appreciation is seen in rentals owing to de mand revival. That said, there is a shortage in availability of the right product offering (sup erior quality supply) at the right location,'' said Ashutosh Limaye, national director, re search, JLL India.