An analysis of the recent revival of commercial real estate market in Mumbai shows that the Banking, Financial Services and Insurance (BFSI) sector has been primarily responsible for the huge uptake of office space. Absorption by BFSI in Mumbai accounted for 47 per cent of the total absorption by the sector across seven cities in India, said a report by property consultants Cushman and Wakefield.
As compared to the first quarter of the year, the BFSI has registered a 170 per cent growth in absorption of office space in the city in the second quarter (April-June). In this period, the sector lapped up a total 6.70 lakh sq ft in Mumbai, the highest in the country. The NCR (Delhi) which saw the second most uptake by BSFI sector is far behind with only 1.80 lakh sq ft followed by Chennai at 1.30 lakh sq ft.
According to Arvind Nandan, Executive Director, Consultancy Services at Cushman and Wakefield, the rise in uptake of space by BFSI is due to the process of consolidation and expansion whereby many banks are taking larger and contiguous spaces.
“The current rise in the absorption of BFSI space in Mumbai highlights the fact that the city is considered to be the most preferred location for expansions. In fact, in the recent times, growth and consolidations have taken place away from traditional micromarkets of south and central Mumbai to suburban locations like Bandra-Kurla Complex, Andheri, Goregaon and Malad,” he said.
