Rentals & Value of Offices at BKC, Lower Parel may Rise by up to 20%

Rentals and capital value of prime office buildings at Bandra-Kurla Complex (BKC) and Lower Parel in Mumbai could rise 8-20% over the next year and a half, according to property consultant Jones Lang LaSalle India. Although the office space vacancy level in the city is high at 19% — a sign of a slowdown in the real estate market —rentals in Bandra-Kurla Complex and Lower Parel areas continue to rise for want of good property in prime locations, a press release issued by the property consultant said. 

According to the consultancy, corporate tenants, who need to relocate, expand, consolidate or downsize, are still scouting for good-quality offices in Mumbai's central and secondary business district areas. 
Property owners in other areas and those with lower quality buildings are using incentives such as rent-free periods, lower deposits and investment in property improvement as tools to retain buyer interest, the consultancy added.
"Landlords are extremely keen to protect their base headline rents, and freebies allow them to sustain tenant demand and to prevent vacuums within their portfolios even if the effective rentals are down," said Ramesh Nair, managing director, west, Jones Lang LaSalle India