Mumbai Post Covid

Avatar By: Jyoti Singh

Before Covid-19 life of a layman was very different, then what it has become now. people who are living in villages and small towns have different lifestyle as compared to metropolitan cities. Majority of population lives in cities, because they have jobs over there.

With the onset of Covid-19, it felt like the financial capital of India had lost its charm as the city of lights. More significantly, the pandemic impacted the traditional commercial office space business. However, as the office spaces slowly opened in Q3 2020, business activities resumed, and India’s office market began witnessing gradual recovery. Project completions grew by 59 percent and net absorption increased by 63 percent compared to the earlier quarter. This strength was sustained through Q4 2020 with a net absorption of 8.24 million square feet, a rise of 52 percent compared to the third quarter.

Trends in Real Estate in Mumbai

However, Q1 of 2021 was sluggish comparatively due to the country's arrival of the second Covid-19 wave. Yet, the world has always been resilient. To tackle this crisis, the government launched its first REIT (Real Estate Investment Trust), followed by the Union Budget 2021 announcing reformist policies for investment by foreign envelope and institutional investors.

According to current media reports, the Indian realty PE investments bounced 16 times on year to $3.24 billion in March 2021. This highlighted the potential of the Indian commercial sector and created some rippling effects of positivity within the economy.

Fig 1 Queen Necklace Mumbai 

The Opportunity in Mumbai

Mumbai presents many possibilities for investment and growth to NRIs, HNIs, and company investors within its economic districts. The MMR market has around 100 million sq. ft of service assets; leading players have developed a severe deal. However, because the city witnessed a linear growth in geographical boundaries, infrastructure, and trade, it continued to draw in an enormous influx of migrating population on the rear of rapid urbanization. This led to the necessity to decentralize and discouraged the commercial hotspots.

fig 2 Mumbai Skyline 

Growing Decentralization in the Mumbai Metropolitan Area

The 'Future of Work' is now expected to be very different from the pre-pandemic era. Trends like "work, live and play" and "walk to work" still gain traction steadily, and Mumbai, as India's commercial capital, must be ready to accommodate that. The mounting success of the town adds to the active working population, skyrocketing property prices, etc., while compromising the freedom of space, aesthetics, and extra luxuries.

Seeing this trend, real estate developers have started to develop commercial real estate outside the traditional business districts in Mumbai. Moreover, to cater to this commercial space, residential spaces are also emerging in these newly developed regions. Among the areas that are experiencing significant growth include Andheri, Malad, Thane, Navi Mumbai, and Panvel.

Fig 3 Mumbai Lifeline (Local Train)

Government’s Push Towards Infrastructure

This trend is complemented by the government's push to enhance connectivity by announcing a slew of infrastructure projects. Today, suburbs like Thane have emerged as a preferred commercial destination thanks to the advantage of parallel connectivity, good commercial offerings, attractive price points, the leisure of enormous spaces for expansion, and favorable social- civic infrastructure to supply value offices. 

Fig 4 Office Area 

The investment opportunity that commercial real estate in Mumbai guarantees unmatched return. However, one needs a trusted partner to find the correct real estate space. We at ImpactR have an un-matched platform that uses advanced analytics to connect people looking for office spaces with property owners.

Before Covid-19 life of a layman was very different, then what it has become now. people who are living in villages and small towns have different lifestyle as compared to metropolitan cities. Majority of population lives in cities, because they have jobs over there.

With the onset of Covid-19, it felt like the financial capital of India had lost its charm as the city of lights. More significantly, the pandemic impacted the traditional commercial office space business. However, as the office spaces slowly opened in Q3 2020, business activities resumed, and India’s office market began witnessing gradual recovery. Project completions grew by 59 percent and net absorption increased by 63 percent compared to the earlier quarter. This strength was sustained through Q4 2020 with a net absorption of 8.24 million square feet, a rise of 52 percent compared to the third quarter.

Trends in Real Estate in Mumbai

However, Q1 of 2021 was sluggish comparatively due to the country's arrival of the second Covid-19 wave. Yet, the world has always been resilient. To tackle this crisis, the government launched its first REIT (Real Estate Investment Trust), followed by the Union Budget 2021 announcing reformist policies for investment by foreign envelope and institutional investors.

According to current media reports, the Indian realty PE investments bounced 16 times on year to $3.24 billion in March 2021. This highlighted the potential of the Indian commercial sector and created some rippling effects of positivity within the economy.

Fig 1 Queen Necklace Mumbai 

The Opportunity in Mumbai

Mumbai presents many possibilities for investment and growth to NRIs, HNIs, and company investors within its economic districts. The MMR market has around 100 million sq. ft of service assets; leading players have developed a severe deal. However, because the city witnessed a linear growth in geographical boundaries, infrastructure, and trade, it continued to draw in an enormous influx of migrating population on the rear of rapid urbanization. This led to the necessity to decentralize and discouraged the commercial hotspots.

fig 2 Mumbai Skyline 

Growing Decentralization in the Mumbai Metropolitan Area

The 'Future of Work' is now expected to be very different from the pre-pandemic era. Trends like "work, live and play" and "walk to work" still gain traction steadily, and Mumbai, as India's commercial capital, must be ready to accommodate that. The mounting success of the town adds to the active working population, skyrocketing property prices, etc., while compromising the freedom of space, aesthetics, and extra luxuries.

Seeing this trend, real estate developers have started to develop commercial real estate outside the traditional business districts in Mumbai. Moreover, to cater to this commercial space, residential spaces are also emerging in these newly developed regions. Among the areas that are experiencing significant growth include Andheri, Malad, Thane, Navi Mumbai, and Panvel.

Fig 3 Mumbai Lifeline (Local Train)

Government’s Push Towards Infrastructure

This trend is complemented by the government's push to enhance connectivity by announcing a slew of infrastructure projects. Today, suburbs like Thane have emerged as a preferred commercial destination thanks to the advantage of parallel connectivity, good commercial offerings, attractive price points, the leisure of enormous spaces for expansion, and favorable social- civic infrastructure to supply value offices. 

Fig 4 Office Area 

The investment opportunity that commercial real estate in Mumbai guarantees unmatched return. However, one needs a trusted partner to find the correct real estate space. We at ImpactR have an un-matched platform that uses advanced analytics to connect people looking for office spaces with property owners.