Inflation is one of the most prominent financial risks that the entire world is currently witnessing and India is not untouched by this risk. It’s a difficult task in an inflationary market to get hold of an asset class that has the potential to beat the inflation and generate a sustained as well as higher real rate of return. Opportunely, the inflationary economic situation makes realty investment more attractive for investors. Inflation often leads to a rise in rental income and the value of property tends to appreciate steadily in the long-term curve. If we closely analyse and compare within the realty sector, investment in commercial realty can be more promising in terms of return on investment and growth prospects compared to residential properties, especially in metropolitans like Mumbai which is the realty market’s trendsetter. If we talk about micro markets in Mumbai’s commercial realty, Mulund is poised to lead the race in terms of growth prospects and stability. Before we look at investment prospects in Mulund-West commercial realty market, let’s first briefly analyse the latest trend in Mumbai’s commercial realty market.
How Mumbai’s commercial realty sector has performed in recent months?
Dr. Shrinivas Rao, CEO, Vestian, says, “It has been heartening to note that the key office markets have seen a positive turnaround since the pandemic, Q2 2022 observing increased traction than the previous quarter. While the pandemic continues to make its presence felt, and uncertainties regarding the supply chain hiking construction material prices will continue to be of concern in the short term, the strong fundamentals ruling the market will prove resilient enough.”
According to ‘The Connect Q2 2022’ report by Vestian, the peripheral office markets along the Thane-Navi Mumbai belt have shown increased traction in the first half of the year, its share exceeding that of the pre-pandemic period. New office space completions surged in Q2 2022 with 2.1 million sqft added to the city’s office market – the highest volume witnessed in the past four quarters.
Mumbai realty market witnessed significant growth in the gross leasing activity during the first half of 2022. According to Marketbeat Mumbai- Office- Q2 2022 report by Cushman & Wakefield, the 2022’s first-half value of gross leading volume (GLV) to be 6.39 MSF, 22-50% higher than the first half figures recorded during the same periods over the last three years. Fresh leasing of 1.69 MSF continues to drive quarterly GLV numbers, and about 1.3 MSF of term renewals were recorded. SBD-BKC, Andheri-Kurla, Malad-Goregaon, and Central Suburbs were active submarkets during this quarter with a cumulative share of 60% in total leasing volume. BFSI (27%), Engineering & Manufacturing (20%), and IT-BPM (18%) were active sectors during the quarter.
It’s evident from several research reports that there is a widespread increase in the leasing activities in Mumbai’s commercial realty market and the occupancy rate has consistently gone up, especially in the location around the periphery of Thane. If you are planning to invest in the commercial market, the research report clearly indicates, that projects in Mulund (W) can be a highly attractive option for you in terms of return prospects and growth stability. Conforming to research reports on commercial realty sector, Kalpataru Summit is one of the few projects in the commercial property segment in Mulund which is available at an attractive price point along with plethora of associated benefits.
Investing in Mulund’s commercial property
Great infrastructural support, proximity to a residential location, excellent business opportunities, attractive rental income, good capital appreciation prospects and access to easy transportation are some important points that make Mulund as one of the best location choices for investing in commercial properties.
According to reports, Mulund has the potential to generate a higher rental return compared to the average return offered by most of the other locations in the commercial property segment in Mumbai. The quality of the construction, location of the project, supporting facilities in the project and distance from the residential spots are some of the factors that determine the rental potential of a location and in all these aspects some of the Grade A property projects in Mulund are highly attractive in terms of rental income and capital appreciation. Commercial spaces in Mulund offer a great opportunity for banking, financial services, insurance and other service sectors to set up their offices.
For commercial property investors, Kalpataru Summit will prove to be a milestone in many aspects. In terms of rental income, it is expected to outperform all the benchmarks. Here’s some brief information on the Kalpataru Summit project that shows why it’s going to be the best choice for commercial property investors.
Why Kalpataru Summit Project is highly attractive for commercial property investors?
Kalpataru Summit is located in Mulund (W) which is already a sizzling hotspot for commercial properties. Some of the attractive aspects of the Kalpataru Summit project that makes it the best investment choice in the current market for commercial property investors are:
– Close to Mulund and Nahur Railway station that allows direct connection to all parts of Mumbai
– Easy access to Navi Mumbai using the Airoli bridge
– Upcoming Metros are in close proximity
– Project is within close proximity to other commercial projects in the vicinity such as BKC, Wagle Estate and the property is situated on the LBS Marg stretch making it more premium in terms of location advantage
– Commercial projects have the potential to generate more than 6% rental return consistently in the long term
– This is one of the few Grade A developments which is amidst a ready catchment of premium residence
One of the key aspects of successful commercial projects is the timely delivery to the buyers and Kalpataru’s track record is fantastic here because they have always delivered properties much ahead of their schedule. Kalpataru is a trusted brand with more than 50 years of legacy. Kalpataru Summit will set itself as a benchmark for most of the commercial properties coming up in Mulund in the future.
