Do you know which city is going to be the next big IT Hub of India after Gurgaon, Pune and Bangalore? The name of this city is Navi Mumbai. With competitive rates of real estate and the work of international airport in pipeline, the city stands a good chance at becoming an IT hub. The rents of premium office spaces in the growing pockets of Navi Mumbai are much affordable as compared to Pune where the average rate is Rs 70 per sq ft and Bengaluru where it is around Rs 60-70 per sq ft. In Gurgaon, the rates are even higher. Home seekers say that dream home is still affordable in Navi Mumbai and now commercial tenants are of the same opinion.
There are a number of factors that point towards the future of Navi Mumbai as an IT hub. Let us talk about some of these in detail-
From connectivity point of view, Navi Mumbai is undeniably the best location for commercial development. It is well connected to the business locations of Mumbai like Nariman Point and Chembur via the Eastern Freeway. This has significantly reduced the travel time between South Mumbai and Panvel; the 50 km can now be covered in an hour or so. It will be further reduced if the much anticipated Trans Harbor Link actually comes true. Apart from road connectivity, Mumbai suburban railway has also started reaching out to Panvel from Andheri in Mumbai. Mumbai Metro will also be extended to the area.
Increase in Supply of Office Spaces
Surprisingly, even the established commercial markets will not be able to match the anticipated supply of commercial spaces in Navi Mumbai. Over 8.5 million sq ft of office spaces are set to hit the market by 2018. Navi Mumbai uses up about a third of the spaces created in Mumbai. Currently, the Vashi-Thane-Belapur-Panvel belt accounts for 20% of the total availability of Grade-A office spaces in the Mumbai Metropolitan Region (MMR). Of this, IT SEZs make up 90%. About 1.6 million sq ft of office spaces are currently rented out in Navi Mumbai.
Affordable Rent and Other Charges
As mentioned above, the rentals for Grade A office spaces in Navi Mumbai are quite affordable as compared to other popular IT Hubs. With greater supply, newer companies will be attracted towards this affordable market. Another cost that bothers commercial tenants is the common area maintenance cost (CAM). This is also much affordable in the city. While in NCR, the average CAM is Rs 10 per sq ft and in Bengaluru Rs 6-9 per sq ft, Navi Mumbai records a CAM of Rs 5-7 per sq ft.
Apart from the above reasons, the coming of an international airport works big in favor of Navi Mumbai commercial real estate market. Capgemini, Syntel, TCS and Wipro are among the many names that already have their rented spaces in the city. Since land is under joint development in Bengaluru it cannot be sold, in Hyderabad the prices are 22-25 crore per acre. On the other hand, land costs in Navi Mumbai ranges between 6-8 crore per acre.
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