New Office Hubs Emerge in Navi Mumbai
Mumbai's satellite city, Navi Mumbai, is witnessing a surge in large-scale office developments, driven by improved connectivity and significant arbitrage in rentals. The area, which includes Kharghar, Panvel, and regions near the Navi Mumbai International Airport, is emerging as a new destination for large enterprises.
Significant Office Rentals and Affordable Housing Drive Growth
- Office rentals in Navi Mumbai average at Rs 75-Rs 80 per square foot per month, significantly lower than the rest of Mumbai.
- Cheaper housing (20-30 percent lower home prices) is expected to drive more offices closer to employees, enhancing productivity for enterprises.
"Areas such as Kharghar and Panvel have one of the cheapest office rentals among the satellite cities of India, even lower than markets such as Greater Noida in the National Capital Region (NCR). The airport is a major driver of the development of new offices, and enterprises of all sorts -- from banks to consultancies to logistics firms -- will look to move into the area, especially those which want to have rentals under the Rs 100 per square foot per month-range," said Abhishek Kiran Gupta, co-founder and CEO of CRE Matrix.
Tender for International Financial Hub
The area's planning authority, the City and Industrial Development Corporation (CIDCO), has released a tender for the development of an international financial hub, similar to that of Mumbai's Bandra-Kurla Complex, on a 120-acre plot in Kharghar.
The facility, which is expected to be developed over 20 years, is likely to see interest from both local and national level developers, as well as large fund sources, property experts said.
Infrastructure Development and Connectivity Improvements
- Under-construction and planned extensions to both the Navi Mumbai Metro and the Mumbai Metro may alleviate some of the mass transit issues in the area.
- The Indian Railways is adding capacity on the Panvel to Karjat and Panvel-Diva-Vasai corridors to make them suitable for frequent suburban trains.
Major Players Join the Bandwagon
- The Adani Group is developing an integrated city akin to its Shantigram development in Ahmedabad, covering around 1,000 acres at the Navi Mumbai Airport Influence Notified Area (NAINA).
- Godrej Properties has launched its Nexspace office platform in Navi Mumbai, with a focus on providing affordable office spaces to businesses.
"A large share of the enquiries are from businesses exploring spaces to set up their own offices, particularly those looking to establish an early presence in a region that is witnessing strong infrastructure-led growth, while some investors are also evaluating it as an investment opportunity," said Amitesh Shah, CEO-Mumbai zone, Godrej Properties.