Nariman Point, one of Mumbai’s most iconic business districts, is set to see office rents nearly double by 2030, according to a new report from Knight Frank. The report, titled ‘South Mumbai – A Renaissance’, attributes this expected surge to ongoing infrastructure upgrades and increasing demand for premium office space in the area. Current rents at Nariman Point stand at Rs 569 per square foot but are projected to rise to Rs 1,091 per square foot by the decade’s end, marking its return to prominence as a key commercial hub after years of waning interest.

The report highlights that Nariman Point has already experienced significant growth, with rental rates increasing by 52% between 2018 and the first half of 2024. In comparison, other prominent Mumbai business districts, such as Bandra Kurla Complex (BKC), saw a more modest rental growth of 20% over the same period. Meanwhile, Bengaluru and the National Capital Region (NCR) recorded declines of 4% and 7%, respectively. Nariman Point’s current rental rates have also surpassed those of Bengaluru (Rs 353 per sq ft) and NCR (Rs 429 per sq ft), solidifying its resurgence.

The report estimates that South Mumbai, which includes Nariman Point, will add 4 to 6 million square feet of mixed-use office space over the next six to eight years. This growth will be further fueled by businesses looking for premium spaces in traditional business districts and the region’s enhanced connectivity due to ongoing infrastructure projects.

Nariman Point was Mumbai’s premier business district in the early 2000s, with office rents rising from Rs 200 per sq ft in 2003 to Rs 550 per sq ft in 2007. However, the global financial crisis and the emergence of newer business districts like BKC caused rents to plummet, reaching Rs 375 per sq ft by 2018. Despite these challenges, the area has made a strong comeback, thanks to its strategic location and infrastructure improvements.

“This rebound is driven by an increase in demand for premium office spaces in traditional business districts and upcoming infrastructure projects that are enhancing Nariman Point’s connectivity and appeal,” the report noted. These factors and the area’s solid residential market have made Nariman Point an increasingly attractive option for businesses and investors.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, emphasised the significance of this revival: “The renewed interest in premium office spaces is already reflected in rising property prices. The convergence of enhanced infrastructure and a strong residential market strengthens Nariman Point’s standing as a premier commercial hub, creating promising opportunities for investors and businesses. As infrastructure-driven economic growth continues, we expect more companies to be drawn to the area, contributing to its revitalisation and long-term commercial sustainability.”

Nariman Point’s continued recovery is poised to bolster Mumbai’s status as a significant commercial hub. As infrastructure developments unfold, it will likely attract more businesses looking for premium office space in a dynamic and well-connected location.