As a Mumbaikar, you've likely visited or heard of the famous Andheri locality. Situated right in the heart of Mumbai's bustling city, Andheri is a central hub for corporate activities and residential living, making it a sought-after destination for those looking to invest in commercial property in Andheri. When one thinks of Andheri, prominent multinational corporations such as Hindustan Unilever (HUL), Bisleri, Marico, and many other top MNCs come to mind, all of which have established their corporate offices in this vibrant area, further underscoring its significance in the commercial real estate landscape of Mumbai.
Let's delve into some key statistics for the Commercial Real Estate Sector in Mumbai:
Net Absorption: In 2023, there was a remarkable 12% increase in the net absorption of commercial space in Mumbai compared to the previous year. This significant growth underscores the robust demand for commercial properties within the city.
Rental Growth: During 2023, the rental values for commercial spaces in Mumbai exhibited an average increase of 5%. This uptrend in rental rates is a clear indicator of the escalating demand for commercial real estate in the city.
Investment: Investment within Mumbai's commercial real estate market surged by 10% in 2023 compared to 2022. This surge in investment underscores the high level of confidence that investors hold in the sector's potential for growth and returns.
Commercial property in Andheri is presently witnessing significant demand, driven by several key factors, including:
Infrastructure: The presence of modern commercial buildings, skyscrapers, and cutting-edge infrastructure has fueled a surge in demand for commercial property in Andheri. These structures are thoughtfully designed to cater to the diverse needs of businesses across sectors like IT, BFSI, e-commerce, and manufacturing. Notably, these structures offer panoramic views of the city and its surroundings, furnished with contemporary amenities and facilities, rendering them an ideal choice for businesses. Leading commercial developers in Andheri include Raheja Group, Hiranandani Group, Shapoorji Pallonji Group, and L&T Realty.
Trade Benefits: MIDC Andheri is a free trade zone (FTZ), extending multiple advantages to corporate entities. Companies situated in MIDC Andheri enjoy exemptions from customs duties on imported goods (except prohibited items), leading to significant cost savings in import operations. Furthermore, they are exempt from income tax on profits generated from exports for the initial 5 years and receive a 50% exemption for the subsequent 5 years, offering substantial tax benefits. MIDC Andheri streamlines the business setup process through a single-window clearance system, saving valuable time and effort for enterprises. Thus, investing in commercial property in Andheri will benefit enterprises invaluably by saving time and effort.
Proximity to Mumbai Airport and Key Locations: Andheri boasts robust connectivity to various parts of Mumbai via a network of highways and arterial roads, including the Mumbai-Pune Expressway, the Western Express Highway, and the Andheri-Kurla Road. This accessibility facilitates convenient commuting for professionals to and from Andheri, connecting it seamlessly to other parts of the city. Additionally, Andheri benefits from an extensive Mumbai Metro network, with the Versova-Andheri-Ghatkopar Line (Line 1) and the Dahisar-Andheri-Chhatrapati Shivaji Maharaj Terminus Line (Line 7) passing through the area. This metro connectivity further eases the travel experience for office-goers. Notably, Chhatrapati Shivaji Maharaj International Airport, India's busiest airport, is located just a short distance from Andheri, simplifying travel to and from other cities in India and abroad for professionals. Good connectivity is one of the key reasons for the thriving demand for commercial property in Andheri.
In conclusion, we can summarize the key trends shaping the Andheri commercial real estate market as follows:
Overall, the commercial property in Andheri's locality exhibits robust growth and is poised for further expansion in the years ahead.