Mumbai falls under the list of places with highly expensive markets for real estate worldwide. People often dream of buying residential or commercial properties in Mumbai.

However, there are certain areas in the city that have recently emerged as the best areas for investing and are getting popular for their relative affordability and ROI. In this blog, we’re going to discuss the best places to invest in commercial properties in Mumbai. Let’s get started.

The property market in Mumbai is one of the most active in India. The city is home to a large and growing population, and there is a high demand for both residential and commercial properties.

The current trends in Property Investment in Mumbai are as follows:

Rising prices: Property prices in Mumbai have been rising steadily in recent years. This is due to a number of factors, including the growing economy, the increasing demand for housing, and the limited supply of available properties.

Shift to suburbs: There is a growing trend of people moving to the suburbs of Mumbai. This is due to the rising prices of property in the city center, as well as the availability of more space and amenities in the suburbs.

Demand for affordable housing: There is a growing demand for affordable housing in Mumbai. This is due to the fact that the city is home to a large number of middle-class and lower-income families.

Rise of co-living spaces: Co-living spaces are becoming increasingly popular in Mumbai. These spaces offer shared living arrangements for young professionals and students.

Growing demand for commercial properties: The demand for commercial properties in Mumbai is also growing. This is due to the growth of the city's economy and the increasing number of businesses setting up shop in the city.

The current trends in property investment in Mumbai are positive. The rising prices, the shift to the suburbs, and the demand for affordable housing are all signs of a healthy market. The rise of co-living spaces and the growing demand for commercial properties are also positive trends.

However, it is important to note that the property market in Mumbai is also volatile. The prices of property can fluctuate significantly, and there is always the risk of a market crash. It is important to do your research and consult with a financial advisor before making any investment decisions.

Understanding Commercial Properties

Commercial Real Estate or CRE is a property that is used to undertake business or commercial activities such as company offices, malls, restaurants, hotels, resorts, etc. To put it in simple words, any property that is purchased for non-residential purposes can be categorized as commercial property. The government levies additional taxes on CRE. While owners can use them for multiple purposes, they are often leased to people for business or commercial purposes or for carrying out any income-generating activity.

Here’s more about commercial Properties:

• Real Estate Investment Trusts (REITs) are majorly used as a global platform where investors make Commercial Real Estate investments in publicly listed properties.

• Investments in commercial real estate prove to be beneficial as they help generate income alongside capital appreciation.

• CRE calls for more capital investment compared to residential Real Estate. While the investment is bigger, the profits prove to be bigger as well.

Top Places to Invest in Commercial Properties in Mumbai

In this section, let’s thoroughly discuss the top areas for investing in commercial properties in Mumbai:

• Bandra Kurla Complex (BKC)

Bandra Kurla Complex is a well-planned area in Mumbai that has beautifully and thoughtfully designed commercial buildings. BKC is well-known for being the go-to area for various renowned and international businesses and banks. While the commercial properties available in BKC are priced at a higher end, it is still considered one of the best places to invest in CRE in Mumbai.

The following are a few of the many businesses and companies that have their spaces in the Bandra Kurla Complex:

1. Citibank

2. ICICI Bank

3. NABARD Head Office

4. IDBI Bank

5. Dhirubhai Ambani International School

6. SEBI

Mumbai Cricket Association’s cricket ground is also situated in BKC alongside the United States Consulate. The newly built Bandra-Worli Sea Link has reduced travel time between Worli and Bandra and the Bandra-Kurla skywalk also makes BKC a popular hub for office spaces.

• Andheri East and West

When compared with Bandra Kurla Complex, the cost per square foot for commercial properties in Andheri is low. Andheri East and West is the hub for various types of commercial properties in Mumbai, including office spaces, industrial premises, restaurants, hotels, etc. Andheri is filled with commercial activities and the area is expected to offer high returns on investments in the near future.

Given its location, the area is going to be a hit among top companies for setting up their office spaces in Mumbai.

The following are a few of the many businesses and companies that have their spaces in Andheri:

1. Jet Airways India Limited

2. Syntel

3. Abbott Healthcare Private Limited

4. Mastek Limited

5. Patni Computers

• Nariman Point

Popularly known as Mumbai's 'Manhattan', Nariman Point is India's first planned central business area. Nariman Point is placed on a sea's recovered ground, and the area is considered to offer the highest space for Commercial Real Estate in the world.

Moreover, Point Nariman is close to Central Line, Harbour Line Terminus, and Western Line stations, making it the perfect location for business units and further making it a great place for buying commercial properties.

Additionally, Nariman Point has an incredible skyline with highly-priced residential properties. It is known to be a significant financial area of Mumbai and is a hub for various domestic as well as international brokerage firms and financial services.

The following are a few of the many businesses and companies that have their spaces in Nariman Point:

1. HSBC

2. Tata Consultancy Services

3. India Bulls

4. The Royal Bank of Scotland

5. State Bank of India

6. Accenture Management Consulting

7. JP Morgan

8. Boston Consulting Group

• Lower Parel

  Lower Parel’s transformation from a mill district to a vibrant commercial and retail hub makes it a strong contender for investment. It has modern office complexes and is preferred for media, advertising, and other businesses. Its strategic location and mix of high-end retail and office spaces drive its investment appeal.

Some of the top brands/ businesses operating from Lower Parel location:

1. The Times Group

2. Vodafone Idea

3. Disney Star

4. RBL Bank

• Powai

Powai has evolved into a key commercial real estate hub. Thanks to its strategic location and planned infrastructure. Home to Hiranandani Gardens and several major tech firms, it offers a variety of office spaces and business parks. The area's mix of commercial and residential developments and connectivity make it a prime destination for commercial real estate investment.

Following are a few companies based in Powai:

1. Nomura

2. CRISIL

3. Credit Suisse

4. Marsh McLennan

• Wagle Estate, Thane

Well-known for its IT Parks and popular developers who are doing their best to develop it at a fast pace, Wagle Estate, Thane, is a great upcoming area for investing in CRE in Mumbai. Wagle Estate is located between Mulund and Thane and is also accessible from LBS road. On top of that, Wagle estate also has much bigger floor plates and plenty of newly built commercial properties.

The following are a few of the many businesses and companies that have their spaces in Wagle Estate, Thane:

1. Insignia

2. Oriana Business Park

3. Amfotech IT Park

• Worli

Once upon a time, Worli was known to be a textile mill site in Mumbai. Today, it is well-known as one of India’s top places for investing in commercial properties in Mumbai. When various micro markets were unsteady in the city, Worli was an area that showed adaptability.

Worli has managed to maintain its premium status of being a prominent business area while also maintaining a consistent cost per square foot. Worli is a well-known area as it is close to both Bandra Kurla Complex and Nariman Point while also being close to the airport.

Moreover, the newly-built sea link has also enhanced the credibility of this area. Abundant parking, green buildings, grade buildings, and various other factors have also added up to Worli's popularity.

The following are a few of the many businesses and companies that have their spaces in Worli:

1. TATA

2. Yes Bank

3. GSK Pharma

4. HDFC Bank

5. Siemens

6. Novartis

• Navi Mumbai Navi Mumbai is a burgeoning commercial real estate destination, with Vashi, Belapur CBD, and Turbhe key highlights. Vashi is a well-established commercial center, featuring IT parks, retail centers, and excellent connectivity to Mumbai. Belapur CBD is rapidly evolving as a vital commercial hub, accommodating corporate offices, government buildings, and financial institutions. The area is poised for further growth with ongoing infrastructure projects, including the Navi Mumbai International Airport, enhancing its appeal for commercial real estate.

Some top business parks in Navi Mumbai include:

1. Reliance Corporate Park

2. Akshar Business Park

We hope this blog has helped you understand the best places for investing in commercial properties in Mumbai while also understanding the reasons that make these areas popular. Investing in Commercial Real Estate is easy. You just have to take various factors into consideration to ensure high ROI.

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