By Ravi Ahuja
One of the most well-connected suburbs in the Mumbai Metropolitan Region (MMR) with close proximity to the Mumbai International Airport, Andheri East has metamorphosed into a major commercial destination and is the densest micromarket in Mumbai. It is logistically connected to the western express highway facilitating access to other commercial hubs like Bandra Kurla Complex, Lower Parel and eastern suburbs like Ghatkopar, Vikhroli. Also, well known as a prime industrial destination due to the presence of Maharashtra Industrial Development Corporation (MIDC) and Santacruz Electronics Export Processing Zone (SEEPZ), it has been accommodating office spaces, IT and consulting companies.
Andheri rose to prominence due to affordable rentals and contiguity to other major business districts like Bandra Kurla Complex (BKC), Kalina, Malad and Goregaon/JVLR. In addition, apart from being one of the prime residential markets, its proximity to residential catchments like Malad, Jogeshwari, Goregaon, and Santa Cruz has also aided in its rising popularity. The Metro line running through the heart of the Andheri-Kurla road between Versova and Ghatkopar has played a significant role in recent years, leading to an increase in demand for space at nearby locations.
Currently, for a Grade A establishment, asking rent in Andheri East ranges between Rs 90 and Rs 130 per sq ft, which has remained stable despite its strategic location owing to available supply in the micro market. Some of the prime office developments include P&G Plaza, Rustomjee Natraj, 215 Atrium, Kanakia Boomerang, Corporate Avenue, Solitaire Corporate Park, Technopolis Knowledge Park, Times Square, etc. In 2016, western suburbs accounted for 41% of the total office absorption with almost 70% absorption in the Andheri micro market. Office leasing was dominated mostly by the small and mid-sized companies with deal size ranging anywhere between 5,000 – 16,000 sq ft as Andheri remained one of the major affordable markets in Mumbai. A similar leasing trend is likely to overlap in 2017 as well with major upcoming supply infusion of around 1.9 million sq ft in the next two years. Some of the expected Grade A completions in 2017, some in full or in part, include Rustomjee Central Park, Kanakia Wall Street and Times Square.
Andheri is currently on a realty growth track. Taking into consideration the planned infrastructure initiatives like the enhanced metro connectivity and the increasing demand for office properties, one can expect a considerable growth in the area’s real estate market in the near future.
(The author Executive Director, Office Services & Investment Sales, Colliers International India and Colliers Research)