Mumbai office property mart shows sign of revival: study

Shows 26% rise on a year-on-year basis and 57% growth compared to preceding quarter

Mumbai's commercial property market is showing signs of revival with 1.30 million square feet of space being transacted in fourth quarter of FY13, which was 26% higher on a year-on-year basis and 57% higher compared to preceding quarter, said a new study.

The banking and financial services industry (BFSI) sector accounted for approximately 0.63 million sq ft and its share jumped to 49% in Q4 FY 2013 from 11% in the previous reference period.

Banks and non-banking finance sector companies from the BFSI pack such as Axis Bank, Barclays and Universal Sompo played an active role during this quarter, said global realty consultant Knight Frank in a release.

Transaction activity was largely concentrated in secondary business district locations like Andheri and Goregaon and Airoli in the peripheral business district during Q4 FY2013 as these two business districts accounted for approximately 78% of the total transactions in this quarter.

Rental growth is expected to be subdued in FY 2014 as approximately 7.8 mn sq ft of office space is scheduled for completion during this period, Knight Frank said.