BKC rentals hit roof, reach for the sky

Almost ten months after commercial plots at the Bandra-Kurla Complex (BKC) were sold at three times the then prevailing rate (of Rs4,200 per sq ft), there is no let up in the demand for office space.

In fact, so high is the demand that prospective buyers are willing to pay 50 per cent more as rent now, than previously. Office rentals at BKC have touched Rs250 psf from Rs150-175 psf, and could go up to Rs 275-300 psf soon.

There are several reasons for this, according to Sanjay Dutt of global real estate consultants, Cushman and Wakefied.

“Development of textile mill lands was initially blocked. Secondly, there is no new development at Nariman Point. Bandra had limited development till MMRDA sold the plots some months back. All this has increased pressure for space at Bandra — one of the three preferred destinations for investment bankers to set up offices,’’ said Dutt, while not ruling out a further hike in rentals.