Mumbai: The Time Is Right For Commercial Real Estate Investment

By Author: indiahomes marketing
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Fuelled by Mumbai real estate bubble, commercial properties to buy in Mumbai continue to remain in the upswing mode despite the escalating prices. Real estate companies and developers testify that investing in commercial properties to buy in Mumbai shall give guaranteed returns as high as 15 to 20 per cent over a period of time. It is not only the commercial properties for sale in Mumbai which is high in demand but the commercial spaces for rentals and lease are also incurring sharp demand jump. As a result, commercial spaces for rentals including in high street regions has hiked to nearly 25 per cent in the last couple of months. The same trend has been observed across high street markets of New Delhi, NCR, Bengaluru, Kolkata and Chennai.

The rise in demand for commercial properties for sale in Mumbai and other tier I markets all across India is strengthened by the current market conditions and strong economic growth. Office and commercial property in Navi Mumbai, and property in Thane has also witnessed huge absorption wherein most of the commercial rental properties in Mumbai Thane have been sold and the rest been ...
... rented and leased out at higher price bands. The lease and rental prices have increased marginally in the midst of most important supply phase around the western suburbs regions including property in Navi Mumbai, and property in Thane.

In the earlier months of 2012 there have been speculations that due to high vacancy rate and shortage of liquidity, Mumbai commercial and office space market shall not be able to yield any sort of positive sentiment from the investors and companies. On the contrary, as we observe in the December 2012, the results have been more than satisfactory for the investors. Though the yield levels seem to be stabilized at nearly 12 per cent, investors are not condemning their decisions and there has been a comparatively positive sentiment spread across the markets. The core reason behind the rise in commercial property and real estate values is that the capital value returns stood ahead of the rental and lease properties and thus the investment activity was stronger in favor of Mumbai properties for sale and thence a positive sentiment prevailed across the market. This sentiment was further supported by major other developments wherein only limited number of distress sales entered the market.

As the trend suggests that the present commercial real estate scenario in Mumbai and its suburbs supports new buyers and investors, it is mostly the corporates and business houses that seem to be taking maximum advantage from the current scenario. In a latest report generated by a famous investment firm, Mumbai commercial and office real estate prices shall reach its all-time high price range in the period of 2010 to 2014. As a result more and more firms would like to freeze their lease prices within their price limits as earliest as possible. According to another report, there are speculations that commercial rental prices in Mumbai shall increase by at least 2 per cent in the first half the coming year.

Author Bio :

Nitin Sabharwal is an enthusiastic marketing explorer who redefines prospective subjects for his works in digital advertising & marketing, e-commerce, and content development. With a commanding work experience of 16 years, Nitin’s participation in digital enabled services with a special emphasis on the Internet has earned him several respectable positions in India’s premier companies. Positioned as VP-Marketing of IndiaHomes, Nitin is maneuvering the company’s branding, Performance, CRM, Contact Centre, Event Marketing and Digital Marketing. Academically, he holds an MBA degree from IMT Ghaziabad. Mumbai real estate, properties for sale in Mumbai, properties in Mumbai