Insurance companies are fast replacing the infotech companies as the new buyers of residential and commercial properties in Mumbai. These companies are generating great demand for quality space. In fact, according to the brokers, the rentals across-the-board have increased by 10 per cent in the last six months mainly due to the interest shown by insurance companies and foreign banks.
Rentals of two and three bedroom flats have picked up and, according to real estate brokers, this is the biggest increase in the rental market in past few years. According to Knight Frank India, the global property consultant, the leave and licence market has been very active as well. Some of the erstwhile industrial premises have also been successfully leasing out space on a regular basis. Kamala Mills, which boasts of tenants such as KPMG and HDFC Bank, has leased out 15,000 sq ft to the insurance company Om Kotak Mahindra.
Areas that are seeing more leave and licence residential deals are increasing in South Mumbai, Cuffe Parade and Bandra. Most property consultants say that there is a dearth of good property and that is why the demand is on the rise.
Sources at Knight Frank India said,
