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Rents in Nariman Point Leave Manhattan Behind
Indian firms are being bullish on to buy or rent office space in Mumbai, a factor which has fuelled the prices of commercial property in the city. Another factor pushing the average rentals in the commercial business district (CBD) areas is a sharp increase in value of rupee. The rentals are believed to be more than those in New York.
The average per sq ft cost in Nariman Point and Bandra Kurla Complex (BKC) stands at 1.5 times higher than Manhattan. According to the market trend, the rentals in BKC will rise higher than the existing rates.
Rentals in Mumbai are going through the roof. Knight Frank finds it cheaper to lease 1 lakh sq ft of commercial space for $55 per sq ft per annum than to pay $90 for the same in Mumbai.
Close on the heels of BKC, Nariman Point is also fetching rentals which are around 1.5 times higher than Manhattan, says Pranay Vakil, Chairman, Knight Frank India.
The weighted average rental in Manhattan hovers around $60, according to the latest survey. It all started a year ago when Lehman Brothers leased a property in BKC for Rs 300- 400 per sq ft per month, adds Mr. Vakil.
The cost per sq ft per annum in Mumbai’s CBD was never heard to exceed $30. As compared to it, it has been three times higher in the past 18 months.
The overall average rental in Manhattan was $53.43 sq ft, says Cushman & Wakefield. The amount was the highest ever recorded.
Rents for class A offices in Manhattan are now $64.54 per square foot. Shortage of Grade ‘A’ supply and increase in demand has caused a sharp increase in Mumbai by 20-30% over the last quarter.
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