Mumbai Office stock to touch approx. 132 Mn Sft by 2020
The warehousing and logistics sector shows phenomenal growth of approximately 250%
CBRE Mumbai operations see a rapid employee growth of over 20% YoY
Mumbai, May 24, 2018: CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm today announced the strengthening of its operations in Mumbai with the launch of a new office. The new facility was inaugurated by Steve Swerdlow, CEO, CBRE Asia Pacific He was joined by Mr. Anshuman Magazine, Chairman, India & South East Asia CBRE along with other members of the firms India leadership team. With over 8000 professionals CBRE is the current market leader across all segments of real estate consulting including Office, Retail, Project Management and Asset Services. Over the next few years, CBRE plans to further increase its employee strength to provide enhanced services to developers, occupiers, Investors and end-users.
Being the most prominent node of the country, Mumbai has undergone rapid transformation in terms of organized office space, with corporate occupiers driving the demand for high-quality, investment-grade commercial office space. Apart from a robust commercial and industrial landscape, the city’s retail segment has also witnessed enhanced activity off late with organized retail stock to grow by 10% by 2020.
CBRE Mumbai operations have seen a rapid employee growth of over 20% YoY over the past three years and expects it to continue over the coming few years.
Traditionally recognized as a BFSI hub, Mumbai is witnessing renewed interest for Residential, Retail and Industrial & Logistics space in recent years. The warehousing and logistics sector has shown a phenomenal growth of approximately 250% from 2015 – 2017; in H2 2017, primarily driven by e-commerce, FMCG and engineering and manufacturing companies.
Steve Swerdlow, CEO, CBRE Asia Pacific, said, “India has firmly established itself as one of the most attractive commercial real estate markets globally over the past few years. Our ability to better serve our expanding client base from our new world-class workplace in Mumbai, India’s commercial hub, is key to our strategy of growing alongside our clients in this strategic market
Mr. Anshuman Magazine, Chairman, India & South East Asia, CBRE said, “Mumbai is India's financial capital, with Maharashtra being the first state to roll out the historic MahaRERA,, the state government’s proactive policies, growing occupier demand, improved infrastructure, quality educational institutions and the availability of a large talent pool are the prime drivers to the city’s real estate market. Understanding this growing opportunity, we have expanded our presence in the city to provide enhanced services for all our existing and potential clients. With the overall real estate sector witnessing significant growth, a strong track record as well as a robust team of professionals puts us ahead of the curve in terms of effectively addressing the requirements of our clients.”
Mumbai Key Facts
Mumbai witnessed annual GDP growth of 7.7% from 2013-2017 and ranks 9th among cities in the APAC region. Estimated annual GDP growth is expected to increase to 7.8 between 2018-2022 and Mumbai is likely to rank 5th in terms of GDP growth among cities in the APAC region. (Source: Oxford Economics). Major infrastructure developments are planned within Mumbai over the next 5-10 years which will impact the commercial landscape of the city in a big way. Prominent projects include, Navi Mumbai International Airport, Mumbai Trans Harbour Link – MTHL (Sewri to Nhava Sheva) and Mumbai Metro Line 2A - Dahisar to D N Nagar, Line 2B - D N Nagar to Mandale, Line 3 - Colaba to SEEPZ in Andheri, Line 4 - Wadala to Kasarvadavali and Line 7 - Dahisar to Andheri E. The Maharashtra government recently approved the Mumbai Development Plan (DP) 2034 which sanctioned release of more than 3,000 acres of no-development land parcels for building apartments and commercial complexes. As per the new DP, permissible Floor Space Index (FSI) has been increased to 5 for commercial projects. Increased FSI is anticipated to increase the development potential in the city tremendously. The commercial stock in Mumbai increased by around 25-30% from 2013 - 2017 especially in the peripheral micro-markets and is likely to grow by approximately 15% by 2020. Office demand by BFSI, tech, engineering, manufacturing, consulting, research companies strengthened while demand from co-working operators has grown exponentially in the last one year. Maharashtra was the first state to roll out the historic MahaRERA, more than 15,000 projects registered so far, out of which almost one-third are from Mumbai city and the suburban regions.
The new office provides a trendy, highly tech-enabled environment with collaborative areas, Amphitheatre, Work Café spread over close to 30000 sq.ft. of sustainable work space in Mumbai’s Bandra-Kurla Complex.
The new facility is designed with stronger focus on wellness and sustainability, reflecting CBRE’s growing awareness of the importance of health and environmental issues to employee wellbeing putting ‘people first’ approach. The workplace provides an enhanced workplace experience to boost productivity aligned with the future work environment