Experts say iconic properties in Mumbai in demand

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Mumbai's Prime Properties Retain Value Despite Rental Decline

Despite the recent downward trend in rental prices, prime properties located in Mumbai continue to command substantial value, as evidenced by the recent transactions involving landmark buildings in the city. This activity suggests a robust market for high-value commercial real estate.

Landmark Transactions Reshape Mumbai's Skyline

The iconic Cadbury House, situated in the affluent south Mumbai area, has already been acquired by a new owner. Another significant property, the former headquarters of Citigroup India at the Bandra-Kurla Complex (BKC), is also reportedly on the market. Sources indicate that the eight-story Citi Centre is currently up for sale, attracting considerable interest from potential buyers.

In another major development, private equity giant Blackstone and Pune-based Panchshil Realty are reportedly engaged in discussions to acquire a controlling stake in the renowned Express Towers, a prominent feature of the Mumbai skyline. This potential transaction represents a significant investment in the city's commercial real estate sector.

Redevelopment Drives Land Parcel Transactions

Several ongoing deals involve land parcels, primarily intended for redevelopment initiatives. In the case of the Cadbury House acquisition, the buyer envisions a mixed-use development incorporating two residential towers. Numerous other similar projects are in the planning stages, indicating a strong demand for redevelopment opportunities in prime locations.

Air India Towers Seeks Tenants Amidst Market Shifts

Meanwhile, Air India Towers is actively seeking tenants for a substantial portion of its 22 floors. Currently, TCS, SBI, and Mahila Bank are the sole occupants of this iconic building.

Shifting Rental Landscape in Mumbai

Rental rates in Nariman Point have experienced a consistent decline as newer central business districts (CBDs) like BKC and Lower Parel emerge, offering more competitive rental options. Over the past two years, rental values in Nariman Point have decreased by 20 percent, reflecting this shift in market dynamics.

Cadbury House Acquired by Diamond Merchant

A diamond merchant outbid prominent developers to secure the Cadbury House, a property encompassing over 36,000 square feet of office space. For more than 50 years, it had served as the company's headquarters in Mumbai.

Investor Focus on Leased, Iconic Properties

Current investor interest gravitates towards properties with existing lease agreements and established track records, particularly those with iconic status. These assets are seen as providing both stable income streams and long-term value appreciation.

Suburban Markets Witness Similar Trends

This trend extends beyond South Mumbai to suburban areas such as Powai and Thane, where property owners are increasingly looking to divest non-core assets, capitalizing on the demand for well-located commercial spaces. This activity underscores the broader trend of investors seeking opportunities in both established and emerging commercial hubs within the Mumbai metropolitan region.