Research &

Forecast Report
Mumbai | Office
April 2015

Increasing demand
trend led by IT/
ITeS occupiers
Office absorption in Mumbai increased by 9% QoQ, from
1.22 million sq ft in 4Q 2014 to 1.33 million sq ft in 1Q 2015.
The IT/ITeS sector dominated the citys office absorption
with over 57% (0.75 million sq ft) of the total absorption,
followed by BFSI with 0.38 million sq ft (28%) and pharma
with 0.07 million sq ft (5%). The maximum number of office
transactions were concluded in the western suburbs (0.54
million sq ft) including BKC, Andheri, Malad and Goregaon,
followed byNavi Mumbai (0.39 million sq ft), and the central
suburbs (0.25 million sq ft) including Vikhroli, Powai and
Kanjurmarg. This rise in demand is largely attributed to an
increase in the confidence of occupiers regarding overall
business growth in India and abroad.
In major office transactions during the quarter, E-clerx
took about 0.2 million sq ft in Mindspace SEZ by K Raheja
Corp located in Navi Mumbai. Other major deals included,
Housing.com and Edelweiss, took up 0.13 and 0.10 million
sq.ft. at Nomura by Hiranandani at Powai and Kohinoor City
by Kohinoor Group at Kurla, respectively.
1Q 2015 witnessed new supply of 0.6 million sq ft. The
projects accounting for this new supply were 0.2 million sq
ft of Lodha Supremus (located in I-Think Campus) by Lodha
Group; and 0.4 million sq ft of Century Greenspan (located
in Worli) developed by Century, an Aditya Birla Group
company. No new project was launched during the quarter
as developers were focusing to complete their existing
ventures, about 7.7 million sq ft of Grade A office supply is
available for fitout in Mumbai, among which majority of the
supply is located in the western suburbs (47%) including
BKC, Andheri (E), Malad and Goregaon/JVLR, followed by
Central Mumbai (16%) including Worli, Prabhadevi and
Lower Parel.

City Office Barometer

INDICATORS

1Q 2015

2Q 2015 F

Vacancy
Absorption
Construction
Rental Value
Capital Value

Rental Values
MICRO MARKETS

RENTAL
VALUE*

% CHANGE
QoQ
YoY

CBD**

200 - 230

5%

-7%

Worli/Prabhadevi

185 - 225

0%

2%

Lower Parel

145 - 190

0%

4%

BKC

225 - 320

0%

0%

Kalina

150 - 200

0%

-9%

Goregaon / JVLR

100 - 110

0%

10%

Andheri East

80 - 130

0%

-3%

Malad

80 - 100

0%

5%

Powai

120 - 130

4%

13%

Navi Mumbai

60 - 100

0%

22%

Thane / LBS

60 - 110

0%

13%

*Indicative Grade A rents in INR per SF per month

**Nariman Point, Ballard Estate & Fort

Research & Forecast Report | April 2015 | Colliers International

2.50
2.00
1.50
1.00

1Q 2015

4Q 2014

3Q 2014

2Q 2014

1Q 2014

Average Rental And Capital Value Trend

30,000

Forecast

250

25,000

200

20,000

150

15,000

100

10,000

50

5,000

1Q 2017F

1Q 2016F

1Q 2015

1Q 2014

1Q 2013

1Q 2012

1Q 2011

1Q 2010

0
1Q 2008

Top 5 Transactions of the Quarter

CLIENT

BUILDING NAME

E-clerx

Mindspace SEZ

Housing.com

AREA (SF)

LOCATION

LEASE / SALE

200,000

Navi Mumbai

Lease

Nomura

130,000

Powai

Lease

Edelweiss

Kohinoor City

100,000

Kurla

Sale

L&T infotech

Mindspace SEZ

90,000

Navi Mumbai

Lease

Capegemini

Gigaplex

85,000

Navi Mumbai

Lease

AREA (SF)

LOCATION

POSSESSION

Key Under Construction Projects

BUILDING NAME

DEVELOPER

Seawood Grand Central Tower

I & II

L & T Infrastructure

1,350,000

Navi Mumbai

2015

Godrej BKC

Godrej Group

1,200,000

BKC

2015

Kohinoor Square

Kohinoor Group

800,000

Dadar

2015

Notes:
1. Office Market: The major business locations in Mumbai are the CBD (Nariman Point, Fort and Ballard Estate), Central Mumbai (Worli, Lower Parel and Parel), Bandra Kurla
Complex (BKC) and Andheri Kurla stretch. Powai, Malad and Vashi are the preferred IT/ ITES destinations, while Airoli at Navi Mumbai and Lal Bahadur Shastri Marg are
emerging as new office and IT/ITES submakets.
2. Rents/Capital Value: Market average of indicative asking price for Grade A office space.
3. Available Supply: Total Grade A office space being marketed for sale or lease in surveyed quarter.
4. City Barometer: Represents increase, decrease or stable scenario; as compared to previous quarter.
5. All the figures in the report is based on market information as on 25th March 2015.

Research & Forecast Report | April 2015 | Colliers International

Captial Values INR Per SF

300
Rental Values INR Per SF Per Month

For the last 4 consecutive quarters, there has been an

increase in the absorption of office real estate. This is likely
to continue on the back of an improving economy and
demand from IT/ITeS and BFSI sectors. The markets are
also witnessing a clear price segmentation with tenants
being less price sensitive in prime markets like CBD and
BKC. Developers are however averse to adding new stock
on speculative basis. These factors in the long run will result
in an upward pressure on rentals due to diminishing gap
between supply and demand.

4Q 2013

Colliers View

3Q 2013

1Q 2013

0.00

2Q 2013

0.50

1Q 2009

The New Development Plan of Mumbai 2014-34 was

unveiled by the MCGM (The Municipal Corporation of
Greater Mumbai). Development Plan 2034, which will
remain in place for 20 years, has suggested taking an areawise view on FSI, which may range from a minimum 2.5
to as much as 8 for areas closer to transport hubs (railway,
metro stations, etc.) or business districts.

Quarter Wise Absorption

Million Sq.ft

Despite a rise in demand, rental values remained

unchanged in most of the micro markets, except in CBD
and Powai where rents rose by 4% to 5% QoQ. Capital values
remained stable in all of the micro markets.

Primary Authors:

502
67 countries on
6 continents
United States: 140
Canada: 31
Latin America: 24
199
EMEA: 108

Surabhi Arora
Associate Director | Research
+91 124 456 7500
surabhi.arora@colliers.com
Sachin Sharma
Manager | Research
Amit Oberoi I National Director
Valuation & Advisory Services & Research
For Oce Services:
Mumbai: George Mckay I South Asia Director
george.mckay@colliers.com
Delhi / NCR: Vikas Kalia | National Director
vikas.kalia@colliers.com

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billion in
annual revenue

1.7

billion square feet

under management

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professionals

About Colliers International

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