Mumbai's Bandra Kurla Complex attracting home buyers
01 Mar 2016
Bandra-Kurla Complex (BKC) a major business hub in Mumbai is emerging as a top commercial destination. BKC was created by the Mumbai Metropolitan Region Development Authority (MMRDA) to provide commercial set-ups in South Mumbai.
BKC is known as an important business district of Mumbai and a base for financial services firms in India, backed by robust infrastructure development in the region. According to CBRE's semi-annual Global Prime Office Occupancy Costs survey, Mumbai's BKC ranked 15th in the ‘top 50 rankings for global prime office properties’. It is a prime commercial hub for corporate firms from the financial sector. In the last 10 years, commercial office stock has grown by more than 300 per cent.
Due to commercial development, there was residential augmentation too. Various factors have increased the popularity of BKC not only among end-users and investors but also among consulates coming here for work. In fact, people from other parts of the country chose to migrate to the city for better job opportunities and growth.
Why is BKC considered an investment hot-spot?
The area has well-developed infrastructure and regulated traffic conditions. The airport is just at 4-km distance from BKC. In fact, the residential areas also have the presence of two important schools such as Dhirubhai Ambani International School and the American School of Bombay. Both these schools are located in the high-end residential colony - Bandra.
The locality has an established social infrastructure comprising of bus stops, shopping malls, hospitals, metro stations and restaurants including others - all within a 3-km radius. According to Magicbricks locality rating, public transport is rated high - 4 out of 5 stars. This makes the place easy for commuting.
Price factor
While prices in BKC are in the range of Rs 40,000-50,000 per sq ft when it comes to a reputed developer, prices in Bandra East, the new micro-market, ranges between Rs 25,000-35,000 per sq ft. Prices vary depending upon the exact location of the house, brand of the developer and the amenities provided to end-users. The average capital values of housing units in BKC range from Rs 45,000-55,000 per sq ft. BKC is a sought-after locality by the ultra-high net worth individuals, most of whom call Mumbai their home.
Kurla is in proximity to the established business district of BKC. Kurla has also witnessed increased activity with many large residential and commercial projects being developed in these markets. The average capital values range from Rs 20,000-40,000 per sq ft.
Dhanraj Suvarna, manager-residential, JLL India, says, “The real benefit would be to areas outside BKC and not just around it. When buyers plan on investing in BKC or Bandra, they are definitely not talking about affordability. There are takers even for flats priced in the range of Rs 70,000-75,000 per sq ft in Mumbai; so at existing rates, BKC’s pricing is not crippling when it comes to actual buyers.”
BKC’s proximity to workspaces is the most obvious reason why residential units, catering to high networth individuals (HNIs), are coming up here.
Smart facility
There is a need for further development in this area. As the government is focusing on Smart City development, there should be Smart facilities available as well. Some of the expected Smart features that can be implemented in BKC are free hi-speed internet, Smart parking lots with electric cars, street lights with motion sensors and advanced CCTV networks. You can also count on friendly mobile app to help citizens use these facilities.
A Smart business district means the vicinity and real estate projects would be the ultimate beneficiaries. The government is proposing to allocate funds for development of civic amenities. “If these funds are rightly allocated, the residential sector would be positively impacted and the area would become cleaner,” says Rahees Rijwi, realtor at Confirm Deal.
We hope that with the implementation of right technology, BKC can further attract home buyers and build a Smart locality within Mumbai.