Industrial rents: Mumbai logs highest growth
Here's some bad news for corporates wanting to set up base in Mumbai. The financial capital of the country recorded the biggest increase in industrial property rents — at 94 per cent over a single year — across the world in 2007, says a new study by global real estate consultancy, Cushman and Wakefield.
The rise in rentals has propelled Mumbai to take a leap of 11 places to become the 26th most expensive industrial location in the world.
According to the study Industrial Spaces Across the World 2008, Mumbai commanded a rental value of $10.88 per sq. ft. per month (approximately Rs 428.78 per sq. ft. per month) in December 2007 as against $ 5.6 per sq. ft. per month (Rs 221.02 per sq. ft. per month) in January 2007.
Mumbai is followed by Istanbul with a rise of 60 per cent, while IMT Manesar near New Delhi came at fifth position vis-à-vis rise in global industrial rents with a nearly 30 per cent increase, the study found.
Globally, the area around London's Heathrow airport retained its position as the world's most expensive industrial location with a monthly rental of $ 28.91 per sq ft. No Indian location has made it to the list of top 10 most expensive locales.
Said Sanjay Dutt, Joint Managing Director, Cushman & Wakefield India, "High levels of owner occupancy in Mumbai have led to a shortage of product at a time when demand is being stimulated by India's strong economic growth. This in turn has increased rents. With a shortage of space in the city, many occupiers are locating in industrial parks in the outskirts, in particular as the infrastructure improves and with the introduction of state incentives.”