Navi Mumbai's office rent 21 pc less than avg of tier-I cities, driving demand from GCCs: CRE Matrix

New Delhi, Mar 9 (PTI) Navi Mumbai's office market commands 21 per cent lower rent than the average rentals of major cities, helping the region to attract foreign companies to set up their base and also establish global capability centres (GCCs), according to CRE Matrix.

Real estate data analytics firm CRE Matrix has released a report, 'Navi Mumbai Rising: A Comprehensive Perspective on India's Next Commercial Real Estate Hub'.

The report noted that 21 per cent lower office rentals in Navi Mumbai than the average rentals of Tier-1 city has strengthened its competitiveness for MNCs (multi-national corporations) and GCCs.

The average rent in Navi Mumbai is around Rs 70 per square foot per month.

As per the data, Navi Mumbai currently has 32.7 million square feet of prime office stock hosting 430 occupiers. Of this total stock, 72 per cent area is green-certified.

Another 23.5 million sq ft office supply is expected by 2031.

"Navi Mumbai has evolved from a planned counter-magnet to Mumbai into a structurally significant commercial real estate market within the Mumbai Metropolitan Region (MMR).

"The city's relevance today is driven by the convergence of infrastructure delivery, institutional-grade supply, occupier demand and sustained cost competitiveness," CRE Matrix co-founder and CEO Abhishek Kiran Gupta said.

CRE Matrix pointed out that the average demand of office space in Navi Mumbai during the last two years has been around 3 million sq ft, far exceeding the new supply of 0.8 million square feet.

The prominent locations in Navi Mumbai North are Airoli, Ghansoli, Kopar Khairane, Mahape, and Rabale. In Navi Mumbai (South), Juinagar, Nerul, Seawoods, Vashi, Sanpada, Turbhe, CBD Belapur, Ulwe, Kharghar and Panvel are major destinations.

Major developers present in Navi Mumbai are Tata Realty, Adani Realty, L&T Realty, K Raheja Corp, Mindspace Business Parks REIT and Aurum Ventures, among others.

"Navi Mumbai's ascent is numbers-driven, a 21 per cent office rental advantage attracting GCCs, 23.5 million sq ft of green building development, 628 MW live IT load across 7.5 msf of data centres, and a 3,400+ MW upcoming data-center pipeline-marking its transition into a core commercial and digital infrastructure hub," Gupta said.

He said the rental of Noida and Navi Mumbai would be similar. Kolkata and Ahmedabad office markets are cheaper than Navi Mumbai. PTI MJH DRR