Andheri, Mumbai: A prime residential and commercial destination

Since Mumbai is the commercial and financial capital of India, almost all major Indian companies, as well as leading public sector units and multinational companies (MNCs), have their offices in the city. Traditionally, Nariman Point in South Mumbai (the traditional Central Business  District) was the preferred location for high-grade office occupiers and commercial office space investors. However, Bandra-Kurla Complex (BKC) as an alternative location to the traditional CBD has become more acceptable to MNCs, as it offers a better environment. 

The Suburban Business District (SBD) in the North Mumbai is also a major commercial office market. Geographically, this micro market contains all areas in Andheri, Jogeshwari and Juhu. However, a lot of the Grade-A office buildings are to be found in the Andheri East area. Earlier, Andheri was known as a ‘suburban district’ absorbed by Mumbai city as Greater Bombay. It emerged as one of the prime residential and commercial real estate destinations. Andheri East is a mixed land use precinct, with some of the most prominent hospitality and industrial developments in its vicinity. The core reason is its close proximity to Mumbai’s international airport. Demand for commercial spaces is also generated by good connectivity to the eastern part of the city through the Andheri-Kurla Road and JVLR (Jogeshwari Vikhroli Link Road). The Andheri train station is one of the busiest in the city.

The demand for office space in this location is driven primarily by media houses, the information technology/information technology enabled services (IT/ITeS) sector and pharmaceutical companies. The major occupiers in this micro-market are concentrated on the Andheri-Kurla Road. There is a significant difference in neighbourhood profiles, development scenario and user perception of the established commercial areas at Andheri-Kurla Road vis-a-vis the immediate site vicinity. This translates into a significant difference in capital values and rentals in office buildings across the various locations here.

Andheri, the largest suburb of Mumbai, is also home to a large number of recreational zones, and benefits from the abundance of leisure and lifestyle options. It also boasts of reputed educational institutes and hospitals, apart from commercial spaces, which make residential property investment in this area quite attractive. 

As you turn off from the Western Expressway, the Andheri-Kurla Road is dotted with corporate office space developments providing standard facilities like security and common area power back-up. Apart from the multi-occupier buildings, there are a substantial number of built-to-suit office blocks. The capital values for SBD North (Andheri) are Rs 12,008 per sq ft and the rental values for SBD North (Andheri) are Rs 113 per sq ft.
 

Andheri East is driving the market and has witnessed massive transformation, with rapid infrastructural development and amenities to support convenience in living and working there. Altogether, it is an attractive destination from an investment perspective.

The writer is head–strategic consulting (west), JLL India