“Andheri Holds Unprecedented Real Estate Business Potential” – Anuj Puri, Chairman & Country Head, JLL
MUMBAI, August 16, 2011 – Jones Lang LaSalle India today announced the launch of a separate office in Andheri, Mumbai’s burgeoning commercial district. The office will cater to both the commercial and residential real estate sectors of the entire Western Suburbs of the city. According to JLL, Andheri’s office space sector in particular holds extremely high potential.
“We find the launch of a separate office to cater to Andheri’s real estate needs timely and appropriate,” says Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India. “Mumbai has long ceased to be one seamless city. Rather, it has developed into a aggregation of several closely-connected mini-cities. As one of the most prominent of these towns, Andheri is visibly beginning to overtake its neighbouring towns in terms of real estate business potential. This office will especially focus on the high potential for office sales. ”
Advantageously located amidst the bustling business districts of Bandra-Kurla complex, the Western Suburbs, Powai and growing PBD of Borivali, Andheri has convincing answers to the real estate questions raised by the reeling economy. While there is increasing movement of financial institutions from Nariman Point to Bandra Kurla Complex, Nariman Point still retains its identity of as Mumbai’s financial district.
Meanwhile, Bandra Kurla Complex continues its evolution as the city’s definitive central business district of the future, and to attract increasingly larger companies as occupiers. For various strategic and logistic reasons, Thane, Navi Mumbai and the Western Suburbs are still the most preferred locations for IT/ITeS and BPO operations.
“However, Andheri offers what none of these locations do,” states Ramesh Nair, Managing Director – West India, Jones Lang LaSalle India. “It presents a perfect blend of a statement address, affordable rentals, proximity to public transport hubs and affordable residential properties in the vicinity. All this adds up to Andheri’s increasing attractiveness as an office destination. The establishment of our Andheri office will do a lot to link up the opportunities there with buyers, occupiers and investors more seamlessly.”
Andheri features an outstanding blend of ready-to-occupy Grade A and Grade B buildings with all statutory approvals in place. The opportunities for occupiers are unsurpassed, since this market is currently tenant-driven. This creates considerable scope for negotiation to achieve bargain rentals.
Previously an unorganized market dominated primarily by the film industry and shipping companies, the property market in Andheri has been gaining in maturity. Prominent international property consultants in Mumbai are now focusing on Andheri as a market because a lot of organized activity is slated there in the near future.
“While an office at Bandra Kurla Complex continues to be a valuable business card statement, the supply demand dynamics there are more or less balanced,” says Ramesh Nair. “Also, the majority of the buildings in BKC are commercial properties. Companies which can be classified as an IT/ITeS should ideally harness the leasing benefits which IT properties offer, and there is no dearth of prominent IT/ITeS projects in Andheri. Another business area of interest for an IPC is the fact that the many HNIs residing in Andheri have always shown a preference for buying and leasing office space in the same area.”
Traffic congestion continues to be a major concern for the whole of Mumbai, and Andheri is no exception. However, the proximity of most of the projects in Andheri to the Western Express Highway and JVLR, good rail connectivity and nearness to the airport – coupled with the area’s extra parking leeway as compared to other major micro markets – soften the blow. Also, Andheri is an eminently employee-centric location – it has several good residential projects with property rates that are distinctly more affordable than other areas of Mumbai. The decreased commute increases the productivity of employees significantly.
The demand for both office and residential properties in Andheri is increasing. In the current economic flux that has put a damper on many companies’ expansion plans, this area provides an excellent opportunity to cut real estate costs and come closer to clients and consumers.