The new emerging office hotspot in Mumbai- Thane-Belapur
Due to cheaper leasing rates, the availability of Grade A floor plates, and its closeness to the projected Navi Mumbai International Airport, the Thane-Belapur belt has emerged as a new business destination in Mumbai. Many commercial investors have shifted their emphasis from the famed business areas of Bandra-Kurla Complex (BKC) and Nariman Point to the Thane-Belapur Region as a result of these considerations.
The Thane-Belapur belt, which was formerly a famous industrial zone, is now rapidly rising as Mumbai’s new office space destination. The 21-kilometer route, which runs through Rabale, Ghansoli, Koperkhairane, Vashi, Sanpada, Jui Nagar, and Nerul, connects Airoli with Belapur Maharashtra Industrial Development Corporation (MIDC) and has piqued the interest of several commercial investors in recent years. Lower leasing rates and an abundance of Grade A space have been important development drivers, but the impending Navi Mumbai International Airport has also proven to be a game-changer.
Aside from that, the micro-cost-effectiveness market has helped it get more attention from the investing community. In the Thane-Belapur region, average lease prices for Grade A+ floor plates range from Rs 100 to Rs 180 per sq ft. The typical leasing costs in BKC and South Mumbai, on the other hand, range between Rs 250 and Rs 380 per sq ft. The Maharashtra State Road Development Corporation Limited (MSRDC) leased 15,000 sq ft of space at Shelton Sapphire in Belapur last year, and Morning Star and Brookfield pre-committed to 3.5 lakh sq ft and 3,000 sq ft of Grade A space in L&T Towers, Seawoods, respectively. GVK has also pre-leased a 10,000-square-foot floor plate at Belapur’s Lakhani Ceneterium. These properties’ average lease rates ranged from Rs 65 per sq ft to Rs 100 per sq ft.
The rapid rise of commercial real estate in the surrounding micro-markets, notably Kharghar, Belapur, Seawoods, and Nerul, has prepared the way for residential development. While sales have remained modest, the rental industry has made significant progress. Average rents in these locations have increased by 6-10% in the previous year. With the continuous business boom and the opening of the international airport, the increase might grow much more.
The newly Kharghar-Turbhe connection project, which includes an elevated road and a tunnel, would cut travel time between the two areas by 40-45 minutes. Furthermore, the region’s developing metro network, which runs from Belapur to Khandeshwar, bodes well for commercial and residential development. It would act as the backbone for the whole BKC II, allowing nearby enterprises to seek a higher price.
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