Mumbai, November, 16, 2018 – Mumbai recorded gross absorption of 1.9 million sq ft in Q3 2018, a QoQ increase of 11%. This take-up was concentrated in micromarkets including Andheri East (25%), Navi Mumbai (18%), LBS/Eastern Suburbs (15%), and Goregaon/JVLR (12%).
Flexible workspace operators continued to drive leasing activity, accounting for nearly 36% of gross absorption in Q3 2018, followed by BFSI occupiers representing 28% and consulting occupiers accounting for 15%. The remaining proportion was contributed by occupiers across varied sectors including IT/ITeS, manufacturing, media and pharmaceuticals. In Q3 2018, three of the top five deals were recorded by flexible workspace operators. These deals were in the micromarkets of Andheri East, Navi Mumbai and Goregaon/JVLR.
“The cost-conscious occupiers considering consolidation and relocation should investigate micromarkets such as Lower Parel and Andheri East for their front-office operations, and Navi Mumbai and Thane for their back-office operations. Multi-National Corporations (MNCs), for which cost is not the first priority, should consider Bandra-Kurla Complex (BKC) as their first choice, for it being the BFSI hub characterized by superior quality developments”, says Varghese Abraham, Director, Office Services (Mumbai) at Colliers International India.
As per Colliers Research, the gross absorption by the BFSI sector through H1 2019 to be robust due to steady enquiries by occupiers looking to consolidate.
Mumbai witnessed no major new completions in Q3 2018. Developments that we expected to be completed were deferred because of delays with regulatory approvals. We expect about 9.0 million sq ft of new supply from Q4 2018 to 2021. Most of the planned supply is concentrated in the Andheri East and Navi Mumbai micromarkets.
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