Bandra Kurla Complex: An Evolving Commercial Hub
The MMRDA developed the Bandra Kurla Complex (BKC) as an alternative central business district (CBD) to Mumbai, aiming to curb the expansion of offices and commercial endeavors in South Mumbai. BKC currently boasts a substantial 8 million square feet of office space, with an anticipated addition of 2.5 million square feet in 2012 upon completion of prominent projects such as The Capital, FIFC, and TCG Finance Centres. Within this distinctive micro-market, BKC's G Block has emerged as a prime location in recent years. The current vacancy rate at Bandra Kurla Complex stands at 16%.
Leasing and Buying Activity on the Rise
Leasing and purchasing activity within Bandra Kurla Complex has accelerated over the past two quarters. The rent correction seems to have run its course, with most existing buildings and new projects experiencing stagnant rates or slight increases compared to the previous quarter. This overall market stability suggests that it has reached its lowest point.
Infrastructure Challenges and Opportunities
The impending operation of the Diamond Bourse, occupying 2 million square feet, is projected to significantly increase the flow of people within BKC. The MMRDA's approach to managing this anticipated surge in traffic remains to be seen. Other concerns include the persistent shortage of food and beverage establishments and inadequate public transportation options. The Metro project, announced in 2008, holds the potential to be transformative; however, it has faced considerable delays. Additionally, the now-abandoned monorail project could have substantially enhanced BKC's infrastructure.
Competition and Residential Impact
Various infrastructure projects, including the Santacruz-Chembur Link Road, are poised to facilitate the development of adjacent locales surrounding BKC, such as LBS Road, Sion, Kurla, Kalina, and Mahim. This progress is likely to create competition for BKC. It is also anticipated that a notable number of senior executives employed in BKC might relocate to Bandra, potentially driving residential property values upward in the area.