BKC
or Bandra Kurla Complex is an emerging and planned commercial
district and is the first in a series of growth centers in the
suburbs of Mumbai, India. It is built on the northern side of the
Mahim Creek and flanked by Kurla to the east and Bandra to the west.
The place is considered to free the southern Mumbai from congestions
and give rise to new areas for the planned commercial growth of real
estate in the Mumbai metropolitan region. The office spaces in BKC
are home to headquarters of numerous Fortune 500 companies. Complex
have elegantly designed interiors with offices of many famous and
leading international banks, financial institutions, electronics
conglomerates and IT leaders as the highlights. Its growing
popularity has called for making new buildings and retail units.
Growing
Rental Economy
Contrary
to many residential markets, which continue to face depressing times,
this commercial office segment is witnessing some of the biggest
rental deals. Bandra Kurla Complex (BKC) micro market in the state
of Maharashtra, India, now commands a place among the highest rentals
in Asia Pacific regions owing to the fact that the place is one of
the most preferred locations for big corporate houses looking for
large office spaces.
Many
factors have put this micro market in the bracket of cities offering
most premium offices, which include Hong Kong, Tokyo and Singapore,
in that order. BKC is included in the growth plans as the
international finance and business centre and is relied upon by some
of the biggest names in the banking sector. Even National Stock
Exchange and financial institutions have their offices located in
BKC. It would not be very long that other big names will pick up the
place in their expansion plans. Several consulates have followed the
trend of shifting their base to BKC. The office space is witnessing a
rental increase on a quarter to quarter basis. Mumbai’s rent
office in BKC
is followed by Shanghai and Beijing, where rentals are comparatively
lower.
Office
space dynamics
Leasing
and buying activity at Bandra Kurla Complex continues to accelerate
at a rapid rate. The overall conditions of the area seem stable in
the long run as well. The tenant favoring condition will start to
transit into landlord favoring in the upcoming years. Tenants that
make commitments only for a short-term are continuing to have their
leverage, but the aim for securing attractive rental rates for
long-terms and of course, for the quality space will begin by the
fresh opening of the next year. As it will come harder to find value
options in BKC, some tenants might move to lower-priced markets.
Larger users will take advantage of favorable market conditions to
consolidate operations. The small firms, however, seems to hesitate
in making any such moves unless and until the economic conditions
will improve.
The
future of BKC
With
many international companies to start their operations at BKC, the
employment will soon increase dramatically. There are a number of
upcoming large scale project which the area is yet to witness. Once
these projects are sanctioned the resultant will have a significant
boost in terms of infrastructure and other economical
growth for the Bandra Kurla Complex. To what extent this micro
market will take the Indian economy and be responsible for its
inclusions in some of the biggest market segments in area is yet to
be seen and will be interesting to watch out.
Authors
Note:
Johnson
is working in a famous real estate company in Mumbai. He has been
credited as best employer as he has helped in meeting many of the
client’s expectation for rent
office in BKC.
He advises all the investors that this is the ripe time to invest in
properties like BKC to have good returns in the future.
No comments:
Post a Comment