South Mumbai

A Renaissance
Contents
Navigating the Office Landscape of Mumbai
Page
04
Nariman Point: From Reclamation to Revitalization
– A Brief History
Page
10
Key Factors that Impacted
South Mumbai
Page
12
Upcoming Infrastructure in South Mumbai:
Enhancing Connectivity and Accessibility
Page
15
Rising Residential Market of South Mumbai:
Complementing Nariman Point’s Commercial Revival
Page
26
South Mumbai's Supply:
From Stagnation to Anticipated Revival
Page
35
Visualizing Mumbai's Travel Time Zones:
Current and Future Infrastructure
Page
48
Performance of Nariman Point
Compared to Global Office Markets
Page
52

Conclusion
Page
54
Foreword

Shishir Baijal
Chairman and Managing Director

South Mumbai, once the pinnacle of India's business

landscape, continues to evolve. South Mumbai, home to
the country's leading business conglomerates and iconic
institutions like the Bombay Stock Exchange and the
Reserve Bank of India, once reigned as India's most
prestigious office market. However, as demand for more
modern office spaces grew, the area's limited land and
aging infrastructure led to a decline in interest.

Yet, South Mumbai remains a coveted destination. Its

legendary status, iconic seaside location, and excellent
connectivity to the suburbs keep it desirable. Recent
infrastructure developments, such as the Metro rail and
Coastal Road projects, are fuelling renewed interest in the
area. With more than 4 mn sq ft of developable space
opening up, and older residential buildings being
redeveloped into modern homes, the area is on the verge
of a renaissance.

Office rents in South Mumbai have already risen by over

50% in top buildings over the last five years, reflecting
increasing demand. This trend mirrors the revival seen in
global cities like New York's Lower Manhattan and
London's Battersea Power Plant, where iconic old
business districts have regained prominence through
infrastructure improvements and modern real estate
development.

This report explores the imminent renaissance of South

Mumbai, analysing the factors that are driving this
resurgence, the expected real estate growth, and the
opportunities this area holds for investors and end-users
alike. We hope you find this report insightful and
informative as we delve into the future potential of South
Mumbai's real estate market.
4 | South Mumbai - A Renaissance

In the global commercial real estate market, Mumbai

stands out as a symbol of India's economic strength. As
the financial capital of the country, it has been at the
forefront of commercial activity, drawing both domestic
and international investors. Its strategic location, resilient
Navigating the economy, and vibrant business environment have made it
a top choice for premium office spaces.

Office Landscape of Despite evolving trends over the past decade, Mumbai
has maintained its prominence in the commercial real

Mumbai estate landscape of the country. The city's role as a

financial hub has kept demand for high-quality office
spaces strong, ensuring its rental rates remain notably
higher than those of other major Indian cities. This
consistent premium highlight Mumbai's leadership in the
nation's commercial property market.
 South Mumbai - A Renaissance | 5

Evolving Dynamics of Mumbai's CBDs:

Nariman Point and BKC in Comparison with Leading Markets in
Bengaluru and NCR
Diving deeper into the micro-market performance of Mumbai's key commercial districts, this analysis compares the
maximum rental commanded in Nariman Point and Bandra-Kurla Complex (BKC) with the maximum rents commanded by
those of prominent buildings in the Central Business Districts (CBDs) of Bengaluru and the National Capital Region (NCR).

The Bengaluru market includes office spaces from MG Road, Residency Road, Cunningham Road, Lavelle Road, Richmond
Road, and Infantry Road, while the NCR market covers Delhi's Connaught Place, Barakhamba Road, Kasturba Gandhi Marg,
and Minto Road, as well as Gurugram's DLF CyberCity, Sohna Road, Udyog Vihar, Gwal Pahari, and Noida's Sectors 16 and 18.
This comparison provides critical insights into the evolution of these markets, focusing on rental growth and market
resilience over the past several years.

Top Rental Growth in last five years: Nariman Point and BKC, compared to Bengaluru and NCR
Top Rents in Nariman Point surged 52% Since 2018
60%
52%

50%

40%

30%

20%
20%

10%

Bengaluru NCR
0%
Nariman Point BKC
-4%
-10% -7%
Rental Growth (2018 - H1 2024)

Source: Knight Frank Research

Note: Highest rentals from top-tier buildings for the respective year have been considered.

Rent Nariman Nariman Point has demonstrated impressive growth,

(INR sq ft) Point BKC Bengaluru NCR solidifying its position as a key player in Mumbai's
commercial real estate market. Since 2018, rental rates in
2018 375 833 367 460 Nariman Point have surged by 52%, significantly
H1 2024 569 1000 353 429 outpacing BKC, where rents have grown by only 20%. In
contrast, Bengaluru and NCR have experienced a decline
Source: Knight Frank in rents, dropping by 4% and 7%, respectively, during the
Note: Highest rentals from top-tier buildings for the respective year same period. This surge in rental growth reaffirms
have been considered. Nariman Point's dominance in Mumbai's commercial
landscape, distinguishing itself as a premium business
destination.
6 | South Mumbai - A Renaissance

Comparative Analysis of Weighted Average Office Rentals in Mumbai, NCR, and Bengaluru
Mumbai's premium status has remained largely unchallenged over the years

140.0

121.0 122.7
118.5
Weignted Average Rent INR/sq ft

115.0 117.4 115.7 115.5

120.0 114.0
107.0 110.0
104.0

100.0
88.7
84.0 86.0 83.7 86.4
82.2 82.1
80.0 73.2 75.0 86.8
85.2
80.0 80.0 81.0
64.0
57.5 74.0 73.0
60.0
63.1
57.8
51.5
40.0 48.5

20.0

-
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1
2024
Mumbai NCR Bengaluru

Source: Knight Frank Research

The chart above compares weighted average office rentals in Mumbai, NCR, and Bengaluru from 2014 to the first half of
2024. Throughout this period, Mumbai has consistently commanded higher rental rates, reaffirming its leading position in
India's commercial real estate.

While NCR and Bengaluru have experienced steady rental growth, Mumbai's premium status remains unrivalled. Factors
such as its strategic location, advanced economic infrastructure, and strong corporate presence contribute to its sustained
appeal. Mumbai's reputation as a financial hub continues to attract high-profile tenants, supporting demand for premium
office spaces and higher rental rates.

Nariman Point Office Rental Trends (2003 - H1 2024): Shifts and Resurgence
Nariman Point: Rental Rates Over Time
600 569
550 522
500 500 491 490 501 509 501
Rent INR/sq ft

429 453 422 499

400 438 452 460
402 403
375
300
286
200 244
200
100

0
2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

H1 2024

Nariman Point

Source: Knight Frank Research

Note: Highest rentals from top-tier buildings for the respective year have been considered.
 South Mumbai - A Renaissance | 7

Nariman Point's rental dynamics have undergone notable shifts over the past two decades. In the early 2000s, Nariman
Point was Mumbai's premier business hub, with rentals rising steadily from INR 200 per sq ft in 2003 to INR 550 per sq ft in
2007. However, the global financial crisis and the increasing appeal of BKC, with its modern infrastructure and larger office
spaces, led to a significant shift in demand. As a result, Nariman Point saw rentals decline to INR 402 per sq ft in 2012.

The mid-2010s continued to be challenging for Nariman Point, as companies favoured newer business districts. By 2018,
rentals had dropped to INR 375 per sq ft, reflecting this competitive pressure. However, in recent years, there has been a
notable recovery in Nariman Point's rental market, with rates reaching INR 569 per sq ft in H1 2024. 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.

Top Rental Comparison: Nariman Point and BKC, Mumbai compared to Bengaluru and NCR
Nariman Points Observes Remarkable Progress

1200
Rent INR/sq ft

1026 1000
1000
833 867
792 768 385

607
569
509 499
460 452 767
500 429
460 501 460 442
375 320
367 399 362 364 353
298 268

0
2018 2019 2020 2021 2022 2023 H1 2024

Nariman Point BKC Bengaluru NCR

Source: Knight Frank Research

Note: Highest rentals from top-tier buildings for the respective year have been considered.

In 2018, Nariman Point's highest rental stood at INR 375 per sq ft, significantly lower than BKC's INR 833 per sq ft and NCR's
INR 460 per sq f; however, by the first half of 2024, Nariman Point's rental rates surged to INR 569 per sq ft, surpassing
leading CBDs of both Bengaluru (INR 353 per sq ft) and NCR (INR 429 per sq ft). This consistent rise demonstrates Nariman
Point's growing appeal as a premium office destination, driven by renewed demand and its strategic location.

While BKC continues to lead, receiving highest rentals across CBDs in India, Nariman Point's recovery from 2020–2021 and
its subsequent growth highlight its resilience and ability to attract premium office tenants.

The comparative analysis of Nariman Point and BKC underscores the evolving dynamics of Mumbai's commercial real
estate market. Nariman Point's steady growth positions it as a formidable player in the CBD landscape, complementing
BKC's status as a prime office hub. This upward trend in rental rates signifies increasing demand for premium office spaces
in Nariman Point, reinforcing Mumbai's stature as a global business destination.

As Mumbai continues to enhance its infrastructure and business ecosystem, both Nariman Point and BKC are well-
positioned to maintain their prominence in India's commercial real estate sector, ensuring sustained growth and attracting
new investment in the years to come.

Moving forward, we will examine the dynamics of Nariman Point, discussing its past challenges and the potential for it to
overcome these obstacles and become a prime commercial location.
8 | South Mumbai - A Renaissance
 South Mumbai - A Renaissance | 9

Deepak Parekh South Mumbai's commercial landscape

Chairman is rapidly transforming, driven by
HDFC AMC & HDFC Capital infrastructure projects that have
boosted connectivity and reduced
travel times. With premium office
spaces attracting global interest, the
area is set to reclaim its glory as a
premier business hub. Renowned for its
ultra-luxury residences and lifestyle,
this revitalization further cements
South Mumbai’s position as a vibrant
center for work and upscale living,
ready to rival the world's top financial
hubs.
10 | South Mumbai - A Renaissance

Nariman Point: Nariman Point, once part of the Arabian Sea, began its
transformation in the 1940s as part of a larger plan to
expand Mumbai's financial district. Spearheaded in 1946

From Reclamation to by the then municipal commissioner Sir Cowasji Jehangir,

the reclamation project was named after Khursheed
Framji Nariman, the municipal corporator who

Revitalization championed the initiative. By the 1950s, Nariman Point

was emerging as a planned commercial district, attracting
businesses and government offices.
– A Brief History The 1960s marked a period of rapid development, with
significant construction activity and the rise of several
high-rise buildings. This established Nariman Point as a
symbol of corporate power and wealth in Mumbai. By the
1970s, it had solidified its status as the city's premier
business district, home to major banks, financial
institutions, and multinational corporations. Real estate
prices soared, making it one of the most expensive
commercial areas globally.

Nariman Point reached its zenith in the 1980s, with a high

demand for office space. Iconic buildings like the Air India
Building, Express Towers, and Oberoi Towers shaped the
skyline, and companies vied for a presence in the area.

Sir Cowasji Jehangir leads the project;

the Arabian Sea into Nariman Point

named after Khursheed Nariman

Reclamation begins, transforming

1940s 1946

Nariman Point Timeline

 South Mumbai - A Renaissance | 11

However, by the 1990s, while Nariman Point maintained its newer business districts like Lower Parel and Andheri. The
position as Mumbai's prime commercial hub, its 2016 fire in the Indian Express building further highlighted
infrastructure, developed decades earlier, began showing the area's aging infrastructure and the need for modern
signs of strain. Issues such as a lack of parking, safety measures.
congested roads, and aging buildings became more
From 2020 to 2022, Nariman Point remained a significant
apparent.
location, though no longer the epicentre of Mumbai's
The early 2000s saw the beginning of Nariman Point's commercial activity. Redevelopment efforts were limited,
decline, as the Bandra-Kurla Complex emerged as a new with the focus shifting to preserving its historical
commercial hub offering modern infrastructure, better significance. It now serves as a niche commercial district,
connectivity, and larger office spaces at more competitive hosting law firms, consulates, and a few financial
rates. The Maharashtra government's incentives for BKC, institutions.
including tax rebates and infrastructure support,
Looking ahead, infrastructure projects such as the
accelerated the shift of businesses from Nariman Point to
Mumbai Coastal Road, Sea Link, and the expansion of the
this new location. By 2005–2006, major corporations had
Mumbai Metro network, along with the development of the
relocated to BKC, attracted by its modern amenities and
Navi Mumbai Airport, are set to significantly boost
easier access for suburban employees.
Nariman Point's connectivity and accessibility. These
By the 2010s, Nariman Point had lost its status as developments are expected to reduce travel time, ease
Mumbai's commercial capital, overtaken by BKC in terms congestion, and enhance the area's attractiveness to both
of office space absorption and rentals. The aging businesses and residents. Consequently, property values
buildings, many over 30 years old, required costly and office rentals in Nariman Point are likely to benefit,
renovations, which posed logistical challenges. further solidifying its role as a prime commercial hub in
Commercial vacancy rates rose as businesses moved to Mumbai's evolving landscape.
Becomes Mumbai’s top business district

Bandra-Kurla Complex emerges, shifting

business focus away from Nariman Point
Peak demand: Iconic buildings like

Infrastructure shows signs of strain;

issues with congestion and aging
Air India and Oberoi Towers rise
High-rise buildings establish it as a

Loses status as commercial capital;

Nariman Point starts developing as

New infrastructure projects enhance

with soaring real estate prices
symbol of corporate power

connectivity and future appeal

a commercial district

businesses relocate

1970s 1980s 1990s Early

1950s 1960s 2010s 2020
2000s
-Now
12 | South Mumbai - A Renaissance

Key Factors that

Impacted South Mumbai
Infrastructure and Connectivity Limitations
South Mumbai has faced challenges related to its infrastructure, with road
and public transport links that have not kept pace with the demands of a
growing business district. This has affected the area's accessibility and
appeal as a business hub.

Shortage of High-Quality Office and Residential

Spaces
With constrained land availability, South Mumbai observed fewer new
developments in terms of premium office and residential spaces. This
restricted the area's ability to fully cater to the demand for modern
commercial and living environments.

Aging Buildings with Outdated Facilities

Many of South Mumbai’s older commercial structures have seen limited
upgrades, resulting in facilities that may not meet the expectations of
modern businesses. The lack of contemporary amenities has also reduced
its attractiveness.

South Mumbai is now witnessing a transformation, as efforts are underway to

revamp its infrastructure, improve connectivity, and develop new, high-quality
office and residential assets. These changes are positioning it for a strong
revival as a business destination.
South Mumbai - A Renaissance | 13
14 | South Mumbai - A Renaissance
 South Mumbai - A Renaissance | 15

Upcoming Infrastructure
in South Mumbai:
Enhancing Connectivity
and Accessibility
South Mumbai, located at the southernmost tip of Mumbai, suffered a decline
as a business district primarily due to inadequate connectivity. The area's
accessibility was constrained to limited public transport options. Long
commutes by car, exacerbated by severe traffic congestion and scarce parking
availability, further contributed to its diminishing appeal. For many professionals
commuting from the northern and central parts of Mumbai, these logistical
hurdles became significant deterrents, steering businesses, and talent toward
more accessible locations.

In an effort to tackle these challenges, several upcoming infrastructure projects

are poised to reverse this trend, enhancing South Mumbai's connectivity and
making it a more viable office hub once again. With a renewed focus on urban
development and transportation improvements, South Mumbai is set to reclaim
its stature as a premium commercial destination. The introduction of efficient
transport networks, along with other strategic urban initiatives, promises to
address the long-standing accessibility issues.

Following are some of the key infrastructure developments that are expected to
drive this revival:

1. Navi Mumbai International Airport

2. Mumbai Coastal Road Project (MCRP)

3. Mumbai Metro Line 3 (Colaba-Bandra-SEEPZ)

4. Mumbai Metro Line 11 (Wadala – Eastern Waterfront)

5. Eastern Freeway Extension

6. Mumbai Trans Harbour Link (MTHL)

7. Mumbai-Panvel Rail Corridor Upgradation

8. Worli-Sewri Elevated Connector

9. Nariman Point-Cuffe Parade Sea-Link

10. Orange Gate-Marine Drive Tunnel

11. Backbay Reclamation Plan

12. Other projects

16 | South Mumbai - A Renaissance

1 2

Navi Mumbai International Airport Mumbai Coastal Road Project

The new Navi Mumbai International Airport will provide (MCRP)
another major access point to South Mumbai. Its
The Mumbai Coastal Road Project is an ambitious plan to
connectivity via new infrastructure projects like the MTHL
enhance Mumbai's western coastal connectivity,
and upgraded rail corridors will indirectly boost office
stretching across 29.2 km from Marine Drive to Kandivali.
space demand by making the area more accessible to
It is divided into two segments: a 9.98 km southern
international businesses.
section and a 19.22 km northern section. Once completed,
this eight-lane, grade-separated expressway will
Project Details significantly cut down travel times, slashing it from over
two hours to just 40 minutes. The project also includes
Start Year 2018 features like a Bus Rapid Transit System (BRTS), green
public spaces, and a coastal wall to mitigate erosion. The
End Year 2026
project promises to relieve congestion on existing roads
Cost (` crores) 19,600 and make commuting from the suburbs to South Mumbai
far more efficient.

Impact Currently, the 10-kilometre stretch connecting the

Princess Street Flyover at Marine Lines to the Worli
The increased international connectivity through this terminus of the Bandra-Worli Sea Link (BWSL) is
airport will make South Mumbai more appealing to operational.
multinational corporations and businesses requiring quick
airport access. This could drive further investment in
Project Details
office spaces and related amenities.

Start Year 2018

End Year 2025

Cost (` crores) 13,950

Current Travel Time 2 Hrs

Expected Time 40 Mins

Impact
This project is expected to reinvigorate access to South
Mumbai, providing quicker routes from the northern
suburbs. The dedicated lanes for buses and emergency
services will also improve public transport and safety
measures, making South Mumbai a more attractive
commercial hub.
 South Mumbai - A Renaissance | 17

3 4

Mumbai Metro Line 3 Mumbai Metro Line 11

(Colaba-Bandra-SEEPZ) (Wadala – Eastern Waterfront)
The Mumbai Metro Line 3 is a 33.5 km underground metro Mumbai Metro 11 is an underground corridor that connects
line that will link the Colaba, Bandra, and SEEPZ regions. Wadala to the Eastern waterfront in Mumbai. The route will
This project aims to provide seamless north-south pass through Byculla, Bhendi Bazar, and Crawford Market,
connectivity, making it easier for officegoers in areas like and end at S P Mukherjee Chowk (Regal Cinema Circle).
Nariman Point to commute. With 27 stations along the The metro will cross major railway lines, including the
route, this metro line will not only reduce road traffic but Harbour and Central Railway lines.
also provide a faster alternative to Mumbai's
overburdened local trains.
Project Details
Project Details Start Year 2024

End Year 2030

Start Year 2017
Cost (` crores) 16,000
End Year 2024
Current Travel Time 30 Mins
Cost (` crores) 37,275
Expected Time 15 Mins
Current Travel Time 1.5 Hrs

Expected Time 35 Mins

Impact
Impact Mumbai Metro Line 11 will facilitate smoother travel. The
metro line's elevated design minimizes the impact on
Metro Line 3 will drastically reduce reliance on road ground-level traffic and construction activities, making it a
transport for workers commuting to Nariman Point. Its more efficient travel option. Moreover, its strategic
underground design will also limit disruption during placement of stations will enhance last-mile connectivity,
operations, and the stations at Colaba and other key allowing easier access to key business locations in South
locations will provide excellent last-mile connectivity. Mumbai. This line will also contribute to reducing the
overall carbon footprint by promoting the use of public
transport over personal vehicles.
18 | South Mumbai - A Renaissance

Eastern Freeway Extension

6
The Eastern Freeway Extension in Mumbai is an ambitious
project aimed at improving connectivity between South
Mumbai and Thane. The extension will add approximately Mumbai Trans Harbour Link (MTHL)
14 km to the existing 16.4 km Eastern Freeway, making the
total length over 31 km. There will be four entry-exit ramps The MTHL is a 22 km sea bridge that links South Mumbai
at Mulund Octroi Naka, Airoli Bridge, Kanjur Marg, and to Navi Mumbai, bypassing congested areas and
Chheda Nagar. Once completed, the extension will allow providing a direct route. It is expected to carry over 70,000
uninterrupted travel from Thane to Yellow Gate in South vehicles daily, significantly reducing travel time for people
Mumbai without encountering any signals, significantly commuting from the fast-growing Navi Mumbai area to
reducing travel time and easing traffic congestion in the South Mumbai.
region.
Project Details
Project Details
Start Year 2017
Start Year 2022
End Year Completed
End Year 2025
Cost (` crores) 17,843
Cost (` crores) 3,310
Earlier Travel Time 2 Hrs
Current Travel Time 1 Hr
Current Travel Time 20 Mins
Expected Time 30 Mins

Impact
Impact
The MTHL will transform access between Navi Mumbai
The extension will allow faster access to South Mumbai and South Mumbai, boosting real estate and commercial
from the city's eastern corridors, decongesting the arterial activity in both regions. South Mumbai’s office market is
roads and making travel times shorter and more expected to benefit from increased footfall as the
predictable. commuting time drastically reduces.
South Mumbai - A Renaissance | 19
20 | South Mumbai - A Renaissance

Mumbai-Panvel Rail Corridor

Upgradation
The Mumbai–Panvel Rail Corridor is a critical project under
the Mumbai Urban Transport Project (MUTP-3). The
upgrade aims to enhance connectivity between Mumbai
and the satellite town of Panvel, eventually extending
towards Karjat. The new 30 km double-line corridor will
drastically improve commuting efficiency for daily
passengers, especially for those residing in the Navi
Mumbai region. It includes the construction of five new
stations—Panvel, Mahape, Chikle, Chowk, and Karjat—and
several tunnels, including Waverley Tunnel, which will be
the longest on Mumbai's suburban network. This corridor
is designed to reduce congestion on the existing
Thane–Kalyan section and provide an alternate route for
long-distance trains. Upon completion, this rail corridor 8
will play a significant role in reducing travel time and
congestion while improving regional connectivity.
Worli-Sewri Elevated Connector
Project Details This project is part of the larger Mumbai Eastern
Waterfront development plan. The Worli–Sewri Elevated
Start Year 2016 Connector will link key areas in South and Central Mumbai.
Stretching over 4.5 km, this connector will directly link the
End Year 2025 (Est) Mumbai Trans Harbour Link (MTHL) to the Worli Sea Link,
Cost (` crores) 2,800 creating a seamless traffic flow between the two. This
elevated road is expected to substantially cut down travel
Current Travel Time 1.5-2 Hrs time, particularly for those commuting between Mumbai's
Expected Time 30-40 Mins eastern suburbs and the business districts of Worli and
Lower Parel.

Impact Project Details

The upgradation of this corridor will not only reduce travel
time but also ease the pressure on existing railway Start Year 2020
networks, making Mumbai's suburban transport more End Year 2025 (Est)
efficient. It will facilitate growth in rapidly developing areas
Cost (` crores) 1,052
like Panvel and Karjat, stimulating further economic
development. Current Travel Time 30 Mins

Expected Time 10 Mins

Impact
The project will serve as a crucial link in Mumbai's overall
road network, streamlining the connection between the
eastern and western parts of the city. By diverting traffic
from heavily congested routes, it will contribute to a
significant reduction in travel times for commercial traffic
and improve road safety.
 South Mumbai - A Renaissance | 21

9 10

Nariman Point-Cuffe Parade Orange Gate-Marine Drive Tunnel

Sea-Link The Orange Gate–Marine Drive Tunnel is part of the
broader effort to decongest Mumbai's roadways. This
The Nariman Point–Cuffe Parade Sea-Link is envisioned
tunnel will connect the Eastern Freeway to Marine Drive,
as an extension of the Coastal Road project, designed to
bypassing several traffic bottlenecks in South Mumbai.
ease traffic flow in Mumbai's southernmost business hubs.
Stretching 3 km, the tunnel will cut through the heart of
The sea link will provide a direct connection between two
Mumbai's old business district, significantly improving
of Mumbai's busiest areas, reducing travel time and
access to Nariman Point and nearby areas. By diverting
offering a scenic route along the coastline. This 2 km
heavy vehicular traffic underground, it will make the roads
stretch will play an instrumental role in alleviating the
in these areas more pedestrian-friendly while also
traffic congestion that currently plagues Nariman Point,
reducing noise and air pollution.
ensuring smoother travel to other parts of the city.

Project Details
Project Details
Start Year 2024 (Est)
Start Year 2024 (Est)
End Year 2027 (Est)
End Year 2028 (Est)
Cost (` crores) 7,765
Cost (` crores) 315
Current Travel Time 1-1.5 Hrs
Current Travel Time 30 Mins
Expected Time 10 Mins
Expected Time 10 Mins

Impact
Impact
This project is expected to drastically reduce travel time
Once completed, this sea link will help in reducing traffic
for commuters between South Mumbai and the eastern
congestion at Nariman Point, making it a more accessible
suburbs. It will also enhance the aesthetic appeal of
commercial hub. It will also improve the overall quality of
Marine Drive by minimizing road congestion and pollution.
life for daily commuters by providing faster, more reliable
routes between southern Mumbai and the rest of the city.
22 | South Mumbai - A Renaissance

SUPPORTING INFRASTRUCTURE PROJECTS

11 12

Backbay Reclamation Plan Other projects

The Backbay Reclamation Plan is a significant urban These include upgrades to the Marine Drive promenade,
development initiative aimed at creating additional land in road infrastructure, and underground parking facilities.
South Mumbai, extending from Marine Drive to Cuffe While not as high-profile as the above mega-projects,
Parade. While primarily designed to increase residential these developments will significantly enhance the quality
and commercial land availability, its proximity to Nariman of life and accessibility in South Mumbai. For example,
Point is expected to enhance the area's commercial underground parking facilities will ease the persistent
prospects by expanding the city's CBD and improving issue of parking scarcity in the area, while the Marine Drive
infrastructure. Promenade upgrade will create an enhanced urban
environment that attracts both businesses and visitors.

Project Details
Project Details
Start Year 1970*
Start Year 2021
End Year Ongoing
End Year 2025
Cost (` crores) NA
Cost (` crores) 450
* Reclamation efforts began in the 1970s, with multiple phases
continuing to shape the region's development.

Impact
Impact
These smaller-scale projects collectively ensure that
The expansion of land through the Backbay Reclamation South Mumbai becomes not just well-connected but also
will create new opportunities for office development near more pleasant and functional as an office destination.
Nariman Point, reinforcing its position as a key business South Mumbai, once hampered by limited connectivity
hub in Mumbai. By extending the available commercial and long travel times, is now poised to become one of the
space, this project is likely to attract new corporate prime beneficiaries of Mumbai's extensive infrastructure
tenants and further boost investment in the area's office development. Numerous projects, including the Mumbai
market. It will also allow for enhanced infrastructure Coastal Road, Metro Line 3, and the Mumbai Trans
development, contributing to Nariman Point's appeal to Harbour Link, are set to dramatically enhance the area's
both domestic and international businesses. accessibility. The addition of new transport routes, tunnels,
and parking facilities will address long-standing issues
such as traffic congestion and inadequate public
transport, making Nariman Point a more attractive and
competitive business hub. Positioned at the epicentre of
these developments, Nariman Point is well-placed to
reclaim its former status as Mumbai's premier commercial
destination.
South Mumbai - A Renaissance | 23
24 | South Mumbai - A Renaissance

This reduced travel time and enhanced

accessibility to key commercial hubs,
including the CBD, is poised to be a
gamechanger for Mumbai. It will not
only inject fresh vitality into the city's
Ashwini Bhide economic landscape but also breathe
Managing Director new life into the currently dormant
Mumbai Metro Rail Corporation Nariman Point area. With improved
(MMRCL) connectivity and the ease of Metro
travel, Nariman Point will reclaim its
stature as a premier destination for
businesses and commercial activity,
driving significant market growth and
stimulating investment.

For the Mumbai Metro Rail

The recent launch of Metro Line 3 is set Corporation Limited (MMRCL) the
to transform connectivity across CBD holds paramount importance as it
Mumbai. This new line links the city's houses the state's legislative and
expansive suburban areas directly to judicial powers. Recognising this, we
Nariman Point, the heart of Mumbai's are committed to further elevating
Central Business District (CBD). Most Nariman Point's strategic significance
notably, it creates a seamless by providing prime commercial spaces
connection between the International that will enhance its allure as Mumbai's
Airport and the CBD, significantly financial nucleus. MMRCL has
reducing transit times and offering strategically earmarked 4.2 acres of
unprecedented convenience for land with 1.6 mn sq ft of development
commuters, businesses, and residents. potential for state-of-the art
 South Mumbai - A Renaissance | 25

commercial development. This new

development will not only catalyse further
growth but also solidify Nariman Point's
position as the city's pre-eminent business
hub.

The launch of Metro Line 3 marks the dawn

of a new era for Mumbai. It is not merely a
transport upgrade; it is a powerful catalyst
for the city's future economic expansion and
revitalization. We are confident that this
visionary infrastructure project will fuel the
resurgence of South Mumbai, securing its
place at the forefront of global business and
commerce.
26 | South Mumbai - A Renaissance

Rising Residential Market of

South Mumbai: Complementing
Nariman Point's Commercial Revival
Rising Demand for Premium
Properties in India Post-COVID
In the aftermath of the COVID-19 pandemic, India's real homes with superior amenities, while investors viewed real
estate market experienced a noticeable surge in demand estate as a reliable and appreciating asset. This shift was
for premium residential properties. This trend was fuelled especially evident in metropolitan areas, offering proximity
by a combination of lifestyle changes and a growing to business hubs and luxurious amenities.
preference for homeownership. Buyers sought larger
 South Mumbai - A Renaissance | 27

Shift in Demand: Share of Properties worth INR 10 Mn and Above rise

Share of Premium Properties in India

45%
38%

40%
34%

35%

33%
29%

30%

26%
26%
23%
23%
23%

23%
25%

23%
23%

22%

21%
21%

20%
20%
18%

18%
18%

17%
16%
16%

15%
15%
14%

14%

15%
13%

12%
12%
12%
12%

10%

10%
10%
10%

10%
8%

5%

5%
5%
4%

4%

5%
3%

0%
2018 2019 2020 2021 2022 2023 H1 2024

<2.5 mn 2.5-5 mn 5-7.5 mn 7.5-10 mn 10-20 mn >20 mn

Source: Knight Frank Research

In the years following 2018, India's real estate market has premium and luxury homes, especially after the pandemic,
seen a noticeable shift toward higher-value residential as homebuyers have prioritized space, amenities, and
properties, with a growing preference for homes priced long-term investments. Meanwhile, the share of properties
above INR 10 million. Between 2018 and 2023, the share priced below INR 2.5 million has steadily declined,
of homes priced above INR 20 million increased from 4% signalling a shift toward more affluent segments across
to 21%, while those in the INR 10–20 million range rose major cities.
from 10% to 26%. This reflects the rising demand for
 20 | South Mumbai - A Renaissance
28

Mumbai's Position in India's

Residential Market
Among India's cities, Mumbai stands among the leaders in importance and its limited land supply. Moreover, the
terms of premium property sale. The city's residential premium market segment caters to a growing class of
market is unique, as demand for premium properties high-net-worth individuals and investors seeking real
remains consistently high due to Mumbai's financial estate assets in prime locations.

Shift in Demand: Share of Properties worth INR 10 Mn and Above rise

Mumbai’s Position in India’s Premium Residential Market (INR 10 mn and above)

45,000

40,000

35,000
Residential Sales (Units) INR 10 mn and above

30,000

25,000

21,167
20,394
20,000

15,087 15,642
15,000 13,944

11,078

10,000

5,000

-
2018 2019 2020 2021 2022 2023

Residential Unit Sales INR 10 mn and above

Mumbai NCR Bengaluru Pune

Chennai Hyderabad Kolkata Ahmedabad

Source: Knight Frank Research

While NCR has witnessed a significant rise in sale of improvement, Mumbai's premium pricing in this segment
premium properties post-COVID, Mumbai has witnessed a remains unmatched. The city's high demand for luxury
consistent rise over the years and now holds second spot properties and its limited land supply contribute
in terms of most properties sold in the INR 10 mn and significantly to its top position in India's residential real
above category. While other metropolitan areas such as estate landscape.
Bengaluru, and Hyderabad have also witnessed
 South Mumbai - A Renaissance | 29
19

Mumbai Share of Properties worth INR 10 Mn and Above rise

Share of Premium Properties in India

40%

30%

20%
18%

20%

17%
16%

16%
15%
16%

11%
8%
8%

10%

8%
7%

7%

6%
0%

2018 2019 2020 2021 2022 2023 H1 2024

<2.5 mn 2.5-5 mn 5-7.5 mn 7.5-10 mn 10-20 mn >20 mn

Source: Knight Frank Research

While Mumbai has historically catered to a diverse range above. This trend indicates a growing preference for high-
of buyers, a significant shift has occurred in its residential end living spaces, as the share of affordable housing has
market. Previously, affordable housing dominated the gradually declined. Despite this shift, Mumbai's ability to
scene, accounting for over 50% of sales. However, in accommodate both ends of the market demonstrates its
recent years, there's been a notable increase in demand adaptability and resilience.
for premium properties, priced at INR 10 million and

Rising Share of South Mumbai in Mumbai's Total Sales

1,00,000 5.0%

90,000 85,169 86,871

80,000 4.0%
Residential Sales (Units)

67,715
70,000 63,893
62,581 60,374 62,256 60,943 62,989
60,000 3.0%
48,688 47,259
50,000

40,000 2.0%
1.4%
30,000 1.2%
0.9%
20,000 0.7% 0.7% 1.0%
0.6% 0.6% 0.6%
0.5% 0.5% 0.5%
10,000

- 0.0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1
2024

Mumbai Sales (Units) South Mumbai

30 | South Mumbai - A Renaissance

South Mumbai's residential market has witnessed a steady uptick in absorption rates, reflecting its growing appeal as a
premium residential destination. Despite its relatively small share of the overall Mumbai market, South Mumbai's real estate
is characterized by high-end developments and luxury properties.

Since 2016, residential absorption in South Mumbai has increased significantly, reaching over 1,000 units by 2023. This
growth is particularly notable considering the challenging macroeconomic environment. The region's share of the total
residential market has steadily risen, reaching approximately 1.4% in the first half of 2024.

While other micro-markets like the Central Suburbs and Navi Mumbai dominate in terms of volume, South Mumbai's market
stands out for its high-value sales transactions. Despite accounting for a smaller percentage of the total market share,
South Mumbai's residential properties command premium prices due to their heritage, connectivity, and lifestyle appeal.

The surge in South Mumbai's residential market is not just about growing demand for luxury homes; it's also indicative of a
broader transformation that complements Nariman Point's commercial revival. As businesses re-establish or expand their
presence in Nariman Point, the availability of nearby luxury residential options adds significant value for both employers and
employees. This interplay between residential and commercial growth is crucial for sustaining Nariman Point's resurgence
as one of Mumbai's premier business districts.
South Mumbai - A Renaissance | 31
32 | South Mumbai - A Renaissance

political, and judicial power. Second, its

unique scenic value, owing to its
proximity to the Arabian Sea. Global
corporations, including those in India,
are increasingly seeking office spaces
that go beyond functionality—places
that foster a sense of belonging, pride,
and convenience for their teams.
Nariman Point, in particular, embodies
these qualities. It offers corporations the
Sanjay Dutt opportunity to establish iconic
MD & CEO addresses while ensuring unparalleled
Tata Realty & Infrastructure Ltd. accessibility through suburban rail, the
Mumbai upcoming Metro Line 3, the Western
Sea-Link, and the Atal Setu and
Eastern Freeway on the
east—connecting all the way to the new
international airport.
The only limitation currently is the
South Mumbai has long been the cradle constrained supply of new office spaces.
of the Tata Group’s legacy, with However, with the steady rise of
Bombay House serving as the global residential developments along the
headquarters. This area has been the coastline, we anticipate the release of
epicenter of the Group’s global prime land in South Mumbai, paving
endeavors, shaping both the location the way for state-of-the-art office
and its future. It is no wonder that spaces. This will undoubtedly attract
South Mumbai holds a special place in more global corporations to anchor
the hearts of our network. their presence in the city.
Today, South Mumbai presents
tremendous potential, driven by two
key factors. First, its unrivaled heritage
as the center of India’s social, economic,
South Mumbai - A Renaissance | 33
34 | South Mumbai - A Renaissance
 South Mumbai - A Renaissance | 35

South Mumbai Anticipating Fresh

Supply: From Stagnation to Revival
Office Supply
Over the past decade, Mumbai's office market has market saw lower supply from 2020 to 2022, which was
evolved, witnessing fluctuations in supply across the likely influenced by the global pandemic. As we progressed
years. The overall supply of office space in Mumbai has into 2023 and H1 2024, there was a resurgence, with over
remained consistent, with some years experiencing 4 mn sq feet being delivered in the first half of 2024 alone.
peaks, such as 2014 and 2017, when over 9.2 and 10.4 mn The cumulative supply over this period (2014–H1 2024)
sq ft of office space was added, respectively. However, the stands at approximately 62.9 mn sq ft.

Mumbai Office Supply in the Past Decade

12
10.4

10 9.2

8
6.5
5.8 5.9
6 5.4 5.3
5
4.3

4 3.1

2
2

0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 2024

Mumbai Office Supply (Mn sq ft)

Source: Knight Frank Research

36 | South Mumbai - A Renaissance

South Mumbai: Lagging in Supply

12 25%
10.4

10 9.2 20%
20%

8
6.5 15%
5.8 5.9
6 5.4 5.3
5
4.3 10%
4 7%
3.1
6%
5%
2
2% 2
4%

0 0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 2024

Mumbai Office Supply (Mn sq ft) Share of South Mumbai in Total Mumbai

Source: Knight Frank Research

While Mumbai has continued to solidify its position as a key office market, South Mumbai has faced challenges in
expanding its office space supply. From 2014 to the first half of 2024, South Mumbai added 1.6 million square feet of office
space, accounting for 3% of the total office supply in Mumbai during this period.

This modest supply can be attributed to several factors. The high cost of land, coupled with limited availability in this prime
area, has made large-scale commercial developments more complex. At the same time, the existing office stock,
supported by renovations and refurbishments, has been able to meet the demand for office space over the past decade.

However, recent infrastructure improvements, particularly in transportation and connectivity, along with increased interest
from developers, have revitalized the South Mumbai office market. Since 2021, the area has seen a total addition of 0.9
million square feet of office space, surpassing the supply seen between 2014 and 2020. The region's contribution to
Mumbai's overall office supply also saw a significant rise, with 2023 being a standout year, accounting for 20% of the city's
total new office supply. This shift highlights South Mumbai's evolving potential as a growing office destination.

Residential
Over the past decade, the Mumbai residential market experienced significant fluctuations in supply from 2014 to H1 2024.
The initial decline from 62,345 units in 2014 to 23,253 units in 2017 can be attributed to regulatory changes and market
corrections. However, a sharp rise to 74,363 units in 2018 and 79,810 units in 2019 was driven by increased developer
confidence and new project launches. The dip to 50,303 units in 2020 reflects the impact of the COVID-19 pandemic.
Recovery began in 2021 with 70,023 units, peaking at 93,051 units in 2023 due to pent-up demand and economic recovery.
The supply in H1 2024 stood at 46,985 units, indicating a potential market stabilization.
 South Mumbai - A Renaissance | 37

Share of South Mumbai in Total Supply Rise Post Covid

93,051
1,00,000 4.5%

90,434
90,000 4.0%

79,810
4.0%

74,363
80,000

70,023
3.5%
62,345

70,000
3.0%

60,000

50,303

46,985
2.5%

50,000
39,663

2.0%
34,190

40,000
1.8%
1.5%
1.5%
23,253

30,000
1.1%
1.0%
0.9% 1.2% 1.0%
20,000
0.6%

10,000 0.5%
0.4%
0.2%
- 0.0% 0.0%

H1 2024
2015
2014

2016

2017

2018

2019

2020

2021

2022

2023

Mumbai Residential Supply (Units) Share of South Mumbai in Total Mumbai

Source: Knight Frank Research

The share of residential supply in South Mumbai has shown a notable rise in recent years. From a low of 0.2% in 2016, South
Mumbai's share grew steadily, reaching 1.5% in 2020. The peak was observed in 2022, with a significant 4.0% share, largely
driven by increased demand for premium housing post-COVID, infrastructure developments, and the revival of the city's
commercial core. The share continued to remain high in as it remained higher compared to its decadal average of 1.2%.

Tripling Supply in the Next Decade

Looking ahead, South Mumbai's residential and commercial supply is set for substantial growth. Apart from the tremendous
redevelopment potential, over the next six to eight years, the area is projected to see the addition of 4–6 mn sq ft of fresh
space. This upcoming expansion will be driven by the redevelopment of vacant land, including land available with the
Mumbai Metro Rail Corporation Ltd (MMRCL), Rail Land Development Authority (RLDA), old mills, and unused industrial
properties, which are now eligible for conversion into state-of-the-art office spaces.

This anticipated growth in South Mumbai's office market, combined with major infrastructure enhancements, could help
restore the area's stature as a prime office destination. The availability of underutilized land in prime locations presents a
unique opportunity for the development of premium office space, which could attract high-profile corporate clients to the
region. This office market revival is expected to align with the ongoing trends in residential growth, reinforcing South
Mumbai's appeal as a key commercial and residential hub.
CASE STUDIES:
INFRASTRUCTURE
AS A CATALYST FOR
CBD SUCCESS

REINVENTING LONDON'S RETAIL SPACE

- BATTERSEA POWER STATION
Battersea Power Station (BPS) presented a fresh approach to retail development
by blending arts, culture, and commerce into a cohesive space. Throughout its
long history, BPS faced numerous unfeasible proposals, primarily due to
challenges like access and urban isolation. However, the final masterplan,
developed by the Battersea Power Station Development Company (BPSDC),
introduced an innovative strategy that emphasized not only physical design but
also the softer aspects of identity and user experience. This made BPS a highly
desirable destination for visitors.

Key elements
• Blended Shopping: BPS integrated neighbourhood convenience with
destination retail, catering to residents, tourists, and workers. This
combination helped keep the space vibrant throughout the day and into
the night.
• Unique Retail Offerings: Instead of relying on generic high street stores,
BPS attracted a mix of well-known and niche brands. Retailers like Nike
tailored their stores to reflect local preferences, while newer, innovative
brands like Petit Pli added an element of curiosity and originality.
• Diverse Store Configurations: BPS offered varied retail spaces, from
flagship stores to smaller kiosks, allowing retailers to experiment with new
concepts or showcase their products in distinctive ways.
• Retail Theatre: To meet the growing demand for in-person shopping
experiences, BPS incorporated retail theatre into its design, creating
immersive environments. For example, Sweaty Betty's concept store, 'The
Powerhouse,' used industrial design and music to enhance the overall
shopping experience.
• Events and Engagement: BPS continually attracted visitors by hosting a
year-round programme of events, capitalizing on the 'fear of missing out'
(FOMO) with limited-time experiences.

By reimagining the retail experience, Battersea Power Station successfully

transformed itself from an industrial site into a unique, engaging destination that
blended history, culture, and commerce.
South Mumbai - A Renaissance | 39
40 | South Mumbai - A Renaissance
 South Mumbai - A Renaissance | 41

LOWER MANHATTAN, NEW YORK

Lower Manhattan, once dominated by financial institutions, reimagined itself
after the 9/11 attacks. The area's redevelopment focused on diversifying its use,
blending residential, cultural, and retail spaces with its historical financial roots.
The rebuilding efforts emphasized community integration, making it not only a
financial centre but also a lively urban neighbourhood.

Key elements
• Rebuilt Skyline: The redevelopment of the World Trade Centre site
created iconic buildings such as ]One World Trade Centre'.
• Cultural Integration: Incorporating memorials, museums, and cultural
institutions to honour the past while embracing the future.
• Residential Growth: Conversion of office buildings into luxury residential
units transformed Lower Manhattan into a 24/7 neighbourhood.
• Connectivity: Significant investment in transport infrastructure, including
the Fulton Street Transit Centre and the PATH station, ensured ease of
access.

Lower Manhattan successfully transitioned from being a pure financial hub to a

vibrant, mixed-use neighbourhood, integrating history, culture, and modern
development.
42 | South Mumbai - A Renaissance

MARUNOUCHI, TOKYO
Marunouchi, Tokyo's premier business district located between Tokyo Station
and the Imperial Palace, underwent a significant transformation over the past few
decades. Originally a financial stronghold dominated by corporate headquarters,
the district embraced modern urban planning principles to diversify its appeal,
introducing high-end retail, hotels, and public spaces to complement its
commercial essence.

Key elements
• Commercial and Corporate Centre: Marunouchi remained the corporate
heart of Japan, home to many of the country's largest businesses.
• Modernization: Redevelopment initiatives focused on skyscrapers that
provided modern office spaces along with retail and cultural facilities.
• Green Spaces: The addition of parks and walkable streets enhanced the
area's aesthetics and made it more liveable.
• Cultural Integration: The integration of art installations, galleries, and
theatres turned the district into a cultural hub, attracting visitors beyond
the corporate crowd.

Marunouchi's revitalization balanced its identity as a corporate hub while

integrating modern urban conveniences, attracting both business professionals
and tourists alike.
South Mumbai - A Renaissance | 43
44 | South Mumbai - A Renaissance

LA DÉFENSE, PARIS
La Défense, located just outside of central Paris, became Europe's largest
purpose-built business district. Originally developed in the 1960s to ease the
overcrowding of Paris's central business district, La Défense saw several waves
of development that integrated office towers with cultural, residential, and retail
spaces. It was designed as a futuristic, high-rise district and now serves as the
headquarters for many French and multinational companies.

Key elements
• Architectural Innovation: Featuring iconic modernist and postmodernist
towers, La Défense's skyline became a symbol of France's economic
power.
• Public Art and Open Spaces: Large public squares and promenades
dotted with sculptures and art installations enhanced the district's appeal.
• Transport Connectivity: Well-served by the Paris Metro, RER, and tram
networks, La Défense ensured seamless connectivity to the rest of the
city.
• Retail and Leisure: La Défense incorporated major shopping centres and
entertainment spaces, ensuring that it was active beyond working hours.

La Défense successfully combined business, art, and leisure, evolving into a

global business hub while maintaining an accessible and vibrant atmosphere.
South Mumbai - A Renaissance | 45
46 | South Mumbai - A Renaissance

Sathyajit Radhakrishnan
Chief Executive Officer International
Brands
Aditya Birla Fashion & Retail Ltd.

South Mumbai is on the brink of a remarkable transformation. As the home of Indian

couture and iconic luxury brands like Hermes and Christian Louboutin, this area is
already rich in heritage and culture. With the upcoming opening of Galeries
Lafayette, we are confident this precinct will be revitalised as the luxury high street
of India, rivalling global hubs like Champs-Élysées and Bond Street. Fort, with its
blend of heritage, art, and modernity, perfectly aligns with our brand's DNA and
caters to a discerning clientele. The new infrastructure projects have drastically
improved connectivity, making it easier than ever for luxury consumers across the
city to reach this vibrant destination. However, to truly make South Mumbai a global
destination, we must also focus on enhancing local conveniences, preserving the
area's historic charm, and creating pedestrian-friendly spaces to elevate the overall
experience.
South Mumbai - A Renaissance | 47
48 | South Mumbai - A Renaissance

Visualizing Mumbai's Travel Time Zones:

Current and Future Infrastructure
In order to better understand the impact of upcoming infrastructure projects on travel times in Mumbai, we have utilized
isochrone maps. An isochrone map visually represents areas that can be reached from a specific point within a certain time
frame, given the current transportation network. These maps are commonly used in urban planning to analyse travel
accessibility and how it evolves with changes in infrastructure. By comparing the present and future travel time zones, the
isochrone maps in this study offer insights into how the proposed developments could reshape mobility, reduce travel times,
and enhance connectivity across Mumbai.

The maps visually represent travel time zones in Mumbai, India. The first map focuses on the current infrastructure,
highlighting major roads, railways, and existing travel time zones. In contrast, the second and third illustrates proposed
infrastructure projects, while also depicting the anticipated impact of these projects on travel times in 2030 and 2035
respectively.

This comparison emphasizes the potential effects of these upcoming developments on accessibility and travel times
throughout the city. The second map suggests that these planned infrastructure improvements could significantly reduce
travel times and enhance connectivity across various regions of Mumbai.
 South Mumbai - A Renaissance | 49

Current Travel Time (TT) Zones and Infrastructure in Mumbai

Proposed Projects and Travel Time in 2024
50 | South Mumbai - A Renaissance

Proposed Road Projects and Projected Travel Time (TT)

Improvements in 2030
 South Mumbai - A Renaissance | 51

Proposed Road Projects and Projected Travel Time (TT)

Improvements in 2035
52 | South Mumbai - A Renaissance

Performance of Nariman Point

Compared to Global Office Markets
Nariman Point Rent Forecast

3,000 2,555
Rentals INR/sq ft/Month

2,500

2,000 1,728

1,500 1,170 1,091

1,000
569
500

0
London Manhattan Sydney Nariman Point Nariman Point
2030

London Manhattan Sydney Nariman Point Nariman Point 2030

Source: Knight Frank

Note: Highest rentals from top-tier buildings for the respective year have been considered.

When examining rental rates across global office markets, Sydney: Sydney's rental rates are also significant, at INR
we can observe significant variations in pricing. Cities like 1,170 per sq ft per month. As Australia's leading business
London, Manhattan, and Sydney command some of the hub, it has a thriving financial sector and a strong
highest office rental rates globally, reflecting their status presence of multinational companies, driving demand for
as premier financial and business hubs. Nariman Point, premium office space.
once the heart of Mumbai's commercial district, pales in
Nariman Point: In comparison, Nariman Point currently
comparison, but there is significant potential for growth as
has rental rates of INR 569 per sq ft per month. While
the market revives.
considerably lower than its global counterparts, Nariman
London: With rental rates soaring at INR 2,555 per sq ft Point is in the midst of a revival. Nariman Point's location
per month, London is at the pinnacle of global office within South Mumbai and the upcoming infrastructure
markets. Its status as a leading financial centre, coupled developments, including the Mumbai Coastal Road
with high demand for premium office space, drives these Project and Metro Line 3, are expected to increase
prices. London's highly developed infrastructure, skilled connectivity and accessibility. With these factors
workforce, and global connectivity further cement its contributing to the area's resurgence, there is
position at the top. considerable optimism about Nariman Point's potential to
attract new business demand and drive-up rental rates.
Manhattan: Manhattan's office market stands at INR 1,728
per sq ft per month, solidifying its place as one of the most
expensive office markets in the world. The area benefits
from being the financial and corporate centre of the
United States, hosting global institutions, multinational
corporations, and investment banks.
 South Mumbai - A Renaissance | 53

Nariman Point's Potential Growth

Rentals in Nariman Point to Surge Above 1,000/sq ft by 2030

1200
1,091

1000
Rentals INR/sq ft/Month

800

569

600 509
501 499
452 460
375
400

200

0
2018 2019 2020 2021 2022 2023 2024 2030 P

2018 2019 2020 2021

2022 2023 2024 2030 P

Source: Knight Frank

Note: Highest rentals from top-tier buildings for the respective year have been considered.

In the coming years, as global rents continue to rise, With sustained demand, improved infrastructure, and
Nariman Point is expected to experience a more rapid potential new office supply, Nariman Point could regain its
increase, driven by substantial infrastructure stature as a premier business destination. Given the rising
improvements and strong demand for premium demand for premium properties and businesses looking to
properties. By 2030, while cities like London, Manhattan, expand their presence in South Mumbai, it seems likely
and Sydney are projected to see further rental growth, that Nariman Point's rental growth will align with global
even if Nariman Point achieves just 60% of the average trends, helping the market to reach new heights in the
rental rates in these cities, its rents could surpass INR coming years.
1,000 per sq ft per month, potentially reaching INR 1,091
per sq ft by 2030. This projection highlights the significant
growth potential for Nariman Point as Mumbai's office
market evolves and revitalizes.
54 | South Mumbai - A Renaissance

Conclusion
South Mumbai is poised for a remarkable
transformation. With improving infrastructure, an
influx of new supply, and support from the
strengthening residential market, Nariman Point is
navigating various catalysts effectively, solidifying
its status as one of the best commercial office
markets in India. Looking ahead, we anticipate that
with the continued development of infrastructure,
Nariman Point will surpass INR 1,000 per square
foot in office rental rates by 2030.
Author
Naresh Sharma
Assistant Vice President – Research
[email protected]

Design & Graphics

Nitin More
Assistant Vice President – Design and Graphics
Corporate - Marketing & Public Relations
[email protected]
We like questions, if you’ve got one about our research, or would like some property advice,
we would love to hear from you.

RESEARCH CORPORATE - MARKETING & PUBLIC RELATIONS

Vivek Rathi Piyali Dasgupta
National Director - Research National Director - Corporate Marketing &
[email protected] Public Relations
[email protected]

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