Navi Mumbai to Emerge as New Office Destination

Key Statistics:

• 12.3 million square feet of office space under development in Navi Mumbai
• Office rentals in Navi Mumbai: Rs 75-Rs 80 per square foot per month
• Cheaper housing: 20-30% lower home prices in Navi Mumbai compared to the rest of Mumbai

Market Analysis:

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Navi Mumbai, particularly areas such as Kharghar and Panvel, is emerging as a new destination for large-scale offices in Mumbai. Improved connectivity and significant arbitrage in rentals make the area an attractive proposition for tenants, especially large enterprises. The area has 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).

International Financial Hub:

The City and Industrial Development Corporation (CIDCO) has released a tender for the development of an international financial hub on a 120-acre plot in Kharghar. The facility is expected to be developed over 20 years and is likely to see interest from both local and national level developers, as well as large fund sources.

Infrastructure Development:

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Major infrastructure developers and planners have taken the cue, with the CIDCO ramping up planning for the hub since the development of major pieces of infrastructure, such as the new airport and the Navi Mumbai Metro, have started to reach scale. The Indian Railways is also adding capacity on the Panvel to Karjat and Panvel-Diva-Vasai corridors to make them up to speed for frequent suburban trains.

Developer Activity:

Larger builders, such as the Adani Group, are making a significant play for the area. The Adani Group is slated to come up with an integrated city akin to its Shantigram development in Ahmedabad, that will include homes, as well as offices, retail, and convention centre facilities. Listed developers, such as Godrej Properties, are also testing out their new office platforms starting with Navi Mumbai's outskirts.

Enquiry Trends:

The demand for office space in Navi Mumbai is driven by 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. Enquiries are coming from a diverse set of sectors, including healthcare companies, fintech firms, logistics players, infrastructure developers, legal consultants, brokerage and consultancy companies, as well as real estate advisory firms.