Outside of the Central Business Districts of South Mumbai and BKC, the leading hubs for offices in Mumbai today are Powai, Andheri, and Goregaon. The growth story of these locations is similar in a lot of ways and gives us clues to how office locations in Mumbai will continue to evolve, and why Mulund is likely to be the next commercial hotspot in Mumbai.
Powai Business District
Growth fuelled by premium residential development
All these suburbs witnessed a spurt of large-scale residential development in the last couple of decades. In Andheri, Powai, and Goregaon, leading branded developers built and delivered thousands of premium homes. The premium residential development attracted affluent audiences, with working professionals and business owners moving to these suburbs in droves. Once that happened it was inevitable that demand for office spaces would shoot up, given that most business owners and professionals prefer to work close to their residence. For businesses and employers, moving their offices to these locations then became a no-brainer – they could not just easily attract talent that lived nearby, but they also significantly reduce rental and operational costs in a new commercial market.
Mulund is now following a similar trajectory, with hundreds of homes by branded developers set to be delivered in the next few years. Tier A developers including Marathon, Oberoi, L&T, Piramal, Kalpataru, Wadhwa, Runwal, and more have ongoing projects in Mulund. A report by real estate consultants.
Liases Fores states that the next 4 years will see around 16,000 premium apartments being delivered in Mulund alone. More than 1200 apartments with an average cost of approx Rs. 2 Cr have been sold directly by builders in the last FY in Mulund alone.
Large scale residential development is underway in Mulund
Mulund has traditionally always been an affluent suburb with a large presence of business communities. With turbo-charged premium residential development now underway, the next natural step for Mulund real estate is into commercial spaces.
If you’re looking for upcoming commercial spaces in Mulund, check out Marathon Millennium – metro adjacent premium offices on LBS Marg with spaces starting 350 sqft onwards.
What attracted these developments to these suburbs in the first place was good connectivity to other parts of the city by road and rail. Good connectivity means that businesses can attract and retain talent from all across the city. Andheri and Goregaon are well-connected via the Western Railway and the Western Express Highway. Mulund enjoys similarly excellent connectivity via the Central Railway and Eastern Express Highway and also enjoys connectivity to Navi Mumbai via the Airoli bridge. In fact, Powai has poor connectivity compared to the other locations, since the Railway line is not nearby and even the main highways are a fair distance away, but Powai still overcame this challenge by virtue of its central location in the city.
Commercial properties located within 500m of a station command a premium of about 16% over similar properties outside this zone.
– The Journal of Real Estate Finance and Economics
Metro construction underway in Mulund
Mulund will also enjoy an additional benefit during its transition to a commercial hub – the metro. The Mumbai metro will transform how people travel to their workplaces and having good metro connectivity will be key to attracting talent. In Mulund, the metro line 4 connecting Thane to Wadala runs along the arterial LBS Marg.
Marathon Millennium, a premium commercial tower on LBS, will have a significant advantage in this regard because of its location adjacent to the upcoming Mulund metro station. Learn more
Changes in commercial real estate trends
COVID will induce a lot of changes in commercial real estate in Mumbai. Instead of having expensive, large head offices in the CBD’s, companies may choose to have cheaper, satellite offices closer to the residential areas like Mulund. This will not just save significant costs for the company, but also allow for a flexible growth model. Demand for smaller spaces at traditionally residential locations is likely to increase.
What’s also interesting is that a few commercial developments in these suburbs seeded exponential demand for such spaces resulting in large-scale commercial development with dozens of commercial projects then coming up in the space of a few years, and prices rising steeply.
Marathon Monte Plaza, Mulund saw immense demand for commercial and retail spaces
Mulund is at the stage now where the seeds are being sown for the future growth of commercial real estate. As a developer that has a keen eye on emerging trends in real estate, Marathon is betting big on the future of commercial spaces in Mulund and is aiming to be an early mover. Marathon Monte Plaza was launched and sold out in a couple of months in 2020 and already boasts of several operational businesses, clinics, restaurants, shops, and more. Other leading developers are also planning commercial real estate launches in Mulund.
With Marathon Millennium, Marathon aims to provide a large supply of premium, metro-adjacent offices in Mulund with flexible sixes from 350 sqft to entire floors of over 10,000 sqft. Construction is already underway with the first phase set to be delivered in 2023.
Marathon Millennium, upcoming commercial project on LBS Marg in Mulund
If you’re looking to invest in the future of Mulund, you should consider Marathon Millennium.
About Marathon Group –
Marathon Group is a 50-year-old Mumbai based real estate development company that has completed over 80 projects in the city. The group is proud to have provided homes for more than 5,000 families, retail space for 400 retailers and offices for 350 businesses.
Marathon is currently building several townships in the fastest growing neighbourhoods, affordable housing projects, ultra-luxury skyscrapers, standalone towers, small offices and large business centers, with projects spread across the Mumbai Metropolitan Region (MMR), with over 18mn sqft of land currently under development, and a plan to deliver more than 15000 homes in the next 5 years.