Experts predict good times ahead for commercial real estate in Navi Mumbai
Navi Mumbai is emerging as one of the best destinations for commercial real estate and industrial parks due to various factors. Proximity to the major cities like Pune and Mumbai, and the well-planned infrastructure are the major reasons.
According to a report, around 8 million square feet of commercial real estate is expected to be developed in Navi Mumbai over the next 4-5 years, which will be spread across both non-IT and IT parks. Leading realtors like K Raheja, led by Chandru Raheja will be looking to make an impact during this phase. Reliance Realty and India Bulls will also be looking to increase their portfolio.
Apart from this, the report also suggests that CIDCO (City and Industrial Development Corporation of Maharashtra) will be coming up with a 120 hectare corporate park at Kharghar, paving the way for other realty developers.
At this juncture, Navi Mumbai has around 18 million square feet of operational office space. Absorption of office space in the city has reportedly increased from 3,00,000 square feet to 1-1.5 million square feet in the last 5 years. Real estate consultants believe that the demand for office space will continue to increase with the construction of Navi Mumbai International airport and an improved rail and road connectivity.
The commercial real estate market of Navi Mumbai received a major boost recently, as the Singapore-based Ascendas Singbridge bought two under-construction office buildings for Rs 930 crore from real estate firm Aurum Venture. Companies like reliance have also shown interest in expanding their portfolio in the region. Reliance Realty, which owns and operates the 133-acre Dhirubhai Ambani Knowledge City (DAKC) in Navi Mumbai, will develop it to create commercial space of 30 million sq. ft. The valuation of the development projectis estimated to be over ₹25,000 crore
On the other hand, K Raheja Corp, one of India’s largest developers of commercial parks led by Chandru Raheja, has decided to invest Rs 2,000 crore to set up two IT parks over 5 million square feet in Navi Mumbai.
The business parks will be constructed on 55 acres in Juinagar, and 100 acres in Ghansoli by K Raheja Corp, going with the brand name Mindspace. The largest commercial real estate developers in the city already operates three IT parks in Navi Mumbai, under the Mindspace and Gigaplex brands.
As per the report of Union Housing and Urban Affairs Ministry, Navi Mumbai is the second most livable city in India after Pune. A number of working professionals are moving to the city with the incorporation of various firms in a short span of time. There are more than 70 reputed IT and financial companies in the region. Apart from the companies in Mumbai, various Bengaluru and Pune-based firms have been looking for office spaces in Navi Mumbai to set up IT and industrial parks.
Experts at K Raheja Corp have credited reasonable leasing rates, coupled with top quality services and the best infrastructure, for the increasing demand of commercial spaces in the micro-market.