An office space in Mafatlal Centre in Mumbai’s commercial heartland Nariman Point measuring 12,000 sq ft in built-up area is for sale, with the seller expecting a price of around Rs 43,000 a square foot, sources said. The move signals enough supply of small to medium office space in the area, which could keep prices stable in the commercial district.
Built-up area, also referred to as chargeable or saleable area, is the space that includes the area covered by the walls. Sources did not disclose the identity of the seller for confidentiality reasons.
The deal on the expected rate will work out to Rs 52 crore. The private office space, owned by an individual, is on the twelfth floor of the building. HDFC Realty has been given the exclusive mandate to sell the property on behalf of the person, according to a print advertisement dated December 18.
The last outright sales deal in Nariman Point is understood to have happened in Tulsiani Chambers (considered B Grade building), when early this year, Bank of America sold an 11,000 square feet space to jewellery chain Tribhovandas Bhimji Zhaveri (TBZ) for about R25,000 per sq ft.
Mafatlal Centre, however, is considered a Grade A building. Grade A refers to the most prized category of office space. The term is generally used to describe office buildings found in centrally-located, prime, well-maintained buildings.
Industry consultants who have been working and advising on deals in Nariman Point say that the price expected could be on the higher side. A sub R40,000 rate could be more achievable.
With smaller office spaces of between 3,000 square feet and 5,000 square feet and very few Grade A buildings in the location, the prices in the traditional commercial district of Mumbai are under pressure, say consultants.
Though the overall vacancy in the location remains high with a majority of the buildings being old, a few buildings which have been upgraded and have modern facilities continue to attract tenants and buyers. Response from investors looking to buy assets in south Mumbai remains good. “There are Grade A type of offices being sold and continuing to see interest from high net worth individuals and business conglomerates,” says a real estate consultant.
