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'mncs Scouting For Realty Are Pushing Prices Higher'
By property vertical
'mncs Scouting For Realty Are Pushing Prices Higher' By property vertical Realty rates have climbed by 100% over the past year. "Mumbai continues to attract business despite all odds," said a state government official. There is a shortage of commercial space in the city though the housing segment is growing, he added. "Many MNCs or business houses are scouting for space in Mumbai, further boosting demand," an official from the industry department said. Lehman Brothers is among the major foreign players to have bought land in Mumbai. The US-based financial giant is understood to have signed a deal for a property at Worli for a price much above the prevailing rates, sources say. Another South India-based leading finance company has also booked office space at Nariman Point for a hefty price. Says Sunil Mantri, vice president, Maharashtra Chamber of Housing Industry (MCHI): "There is a huge backlog for commercial space. With the economy booming, the demand has been phenomenal. It's time the government considers raising office commercial space index," he said. In New York, the FSI
ratio for office space is 1:20 (a space of 20 sq ft can be developed on a piece of land measuring 1 sq ft) while in Mumbai it is 1:1.33. The MCHI has taken up the issue with the government. An urban development ministry official credited a "resurgent Maharashtra" for the rising realty rates. He cited a "lot of activity that has been taking place in the state" to attract major investments. "We recently had Fiat-Tata Motors and General Motors, the largest car maker in the world, announcing their plans to set up units near Pune. This was followed by Mahindra and Mahindra's expansion plans. Bajaj Auto and Bharat Forge also chose Maharashtra over other states. All this makes the state attractive," he said. The state has undertaken an ambitious plan to sell its Pune-Nashik belt to the manufacturing sector. The area is already home to several companies ranging from auto giant Mercedes to white goods major LG. The area has bagged all recent major projects. "With Expressway connectivity, it makes sense for companies to have units in Pune or Nashik and offices in Mumbai. It's a win-win situation for both, Mumbai and Pune," a industry department official reasoned for Mumbai's soaring real estate prices. | Sign In |
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