The ongoing enhancements in transit-related infrastructure are expected to drive the revitalisation of South Mumbai. These infrastructure improvements are set to significantly increase the appeal of the area for both businesses and investors, stated Knight Frank India's latest report, ‘South Mumbai – A Renaissance’, that was released on Thursday.
While the report states that office rentals in Nariman Point, one of the city's most iconic commercial districts, are projected to see a sharp rise, it forecasts that top rentals in the area will increase from the current Rs 569 per sq ft to Rs 1,091 per sq ft by 2030, reflecting strong demand for premium office space in the area.
In the early 2000, Nariman Point was Mumbai’s premier business hub with rental rising steadily from Rs 200 per sq ft in 2003 to Rs 550 per sq ft in 2007. However, the global financial crisis and the increasing appeal of Bandra Kurla Complex (BKC) led to a downward trajectory in office rental to Rs 402 per sq ft in 2012. The area’s rental price further witnessed a downfall to Rs 375 per sq ft by 2018, significantly lower than BKC’s office rental at Rs 833 per sq ft.
However, with the commencement of various infrastructure projects such as Mumbai Trans Harbour Line (MTHL), Coastal Road etc. the top rental prices appreciated to Rs 569 per sq ft by the first half of 2024. Between 2018 till H1 of 2024, top rental rates in Nariman Point have surged by 52%, significantly outpacing rental growth of BKC, where rents have grown by 20%. This rebound is driven by both, an increase in demand for premium office spaces in traditional business districts and upcoming infrastructure projects that are enhancing Nariman Point's connectivity and appeal.
Shishir Baijal, Chairman & Managing Director, Knight Frank India, said, “South Mumbai is witnessing a resurgence, spurred by the transformation of strategic infrastructure across the city. This renewed interest in premium office spaces is already reflected in rising property prices. The convergence of enhanced infrastructure and a strong residential market strengthens the area’s standing as a premier commercial hub, creating promising opportunities for investors and businesses alike. As infrastructure-driven economic growth continues, we expect more companies to be drawn to the area, contributing to its revitalization and long-term commercial sustainability.”
According to the report, South Mumbai's new office supply is also poised for significant growth, with projections of over 4 million to 6 million square feet of fresh mixed-use space added in the next 6 to 8 years which is three times the supply seen in the past decade. This upcoming expansion will be fuelled by the redevelopment of vacant land, including parcels owned by the Mumbai Metro Rail Corporation Ltd (MMRCL), Rail Land Development Authority (RLDA), old mills, and unused industrial sites that are now eligible for conversion into modern office spaces.
While other micro-markets like the Central Suburbs and Navi Mumbai lead in volume, South Mumbai distinguishes itself through high-value transactions driven by their heritage, connectivity, and lifestyle appeal. The growth in South Mumbai’s residential sector reflects not just increased demand for luxury homes, but also a broader transformation that complements Nariman Point’s commercial revival. As businesses re-establish or expand in South Mumbai, the availability of nearby luxury residences adds significant value for both employers and employees.
