December 2016 | Back to all Real Estate Articles
According to a research report by JLL India, the gross average rents in Mumbai, Navi Mumbai, and Thane increased by 1.3 percent year-on-year (y-o-y) by the end of the third quarter of 2016. While Mumbai's western suburbs recorded the highest growth in rentals at 2.1 percent, the eastern suburbs' followed with 1.7 percent.
As per the report, the rentals in Bandra Kuria Complex (BKC) grew by 1.5 percent while the Secondary Business District (SBD) Central and SBD North registered growth of 1.4 and 1.2 percent, respectively. As expected, rents in Commercial Business Districts (CBD) continued to decline with a 1.6 percent dip. Outside Mumbai, Thane and Navi Mumbai saw 2.5 and 0.7 percent increment in the gross average rents.
In spite of a lack of relevant supply at ideal locations, some companies are willing to expand in the eastern and western suburbs due to their cost arbitrage, which has been reflected in the y-o-y rental values. The report conferred that the rents in the above mentioned micro-markets may continue to increase due to the major infrastructure projects like the coastal road and few phases of metro rail which are in the pipeline.