The present industry situation has led shoppers to revisit their investment portfolios and enhanced traction towards asset creation. Coupled with the very same, the lowest-ever interest prices and the reduction in stamp duty by the Maharashtra government have additional offered impetus to the genuine estate industry in Mumbai. Within the industrial segment, the asset class that is witnessing an upsurge in demand in the city are tiny, boutique offices.
Compared to other metro cities in India, the MMR area has a exclusive aspect with maximum tiny and medium enterprises (like experienced services) that employ about 5-15 folks. To fulfill the requisites of these enterprises & services, there is a demand for workplace spaces ranging from 400 to 1,000 sq. ft. carpet location that very best suits the requires.
Additionally, company owners and specialists who had been operational from Grade B industrial estates or property offices are now searching for such setups in Grade A workplace buildings, present largely closer to their residences or at a effectively-connected place. From an investment point of view as effectively, tiny & boutique offices are a preferable option. The higher appreciation possible and higher rental yield of about 7-8%, as opposed to other asset classes such as bank fixed deposits make these spaces an appealing choice.
Commenting on the very same, Shaishav Dharia, CEO – Townships and Rental Assets, Lodha Group, stated, “Grade A boutique offices are designed keeping in mind the requirements of professionals and small business owners. Offering centrally-located spaces and connected to the city’s business hubs, these small offices within the ready catchment of prime residences have garnered a lot of interest from customers looking for work-near-home opportunities. Seeing this increasing demand and need for usage, more and more developers will foray towards these offices within residential as well as mixed-use developments.”
Compared to co-working spaces, these Grade A boutique offices provide the prestige of ‘owning an office’ particularly for tiny company owners searching for an workplace space for finish-use. Moreover, these workplace spaces are superiorly developed thinking of vastu compliances, concentrate on security & safety, and offer you higher-finish amenities like committed parking, private toilets, higher-high quality facility management, and so on.
Further commenting on the category, Anuj Puri, Chairman, Anarock Property Consultants, stated, “In the post-Covid scenario, the commercial office space has witnessed many disruptive trends like work moving closer to home. Several professionals and entrepreneurs like doctors, lawyers and CAs are opting for smaller office spaces across Mumbai to meet their business concerns. For such businesses, Grade A boutique offices are emerging as a potential alternate. Developers will now need to customize and create unique office spaces to cater to this niche segment.”
With tiny and medium enterprises progressively resuming operations, there will be a rise in demand for tiny and Grade A boutique offices and the industrial genuine estate is at some point going to see development in the future by way of these setups.