Commercial Property in BKC Continues to be Expensive

1. Commercial Property in BKC Continues to be Expensive BKC (Bandra Kurla Complex) continues to be a sought-after location for property investment. From industrialists to wealthy bankers and movie stars, everyone is buying homes in the BKC. Not just residential units but commercial property is also in high demand in BKC. Bandra Kurla Complex was developed to create a new CBD (Central Business District) in Mumbai. The main aim was to ease the pressure that was on South of Mumbai. Before BKC, Nariman Point was the CBD with large towers and plush corporate offices. It was in 1971 that MMRDA (Mumbai Metropolitan Region Development Authority) planned the Bandra Kurla Complex. BKC flourished for decades as every other major Indian and global banks and companies chose this location as their preferred office destination. It was the residential floor space index within Mumbai due to which BKC flourished. Its growth compelled Nariman Point to give up its status as Mumbai’s CBD. Not just the residential floor index but BKC’s proximity to the Bandra Railway Station also boosted its popularity. This location is merely 10-13 kilometers away from the domestic and international airports in Mumbai. So good connectivity has always been a major factor why the wealthy want to buy a home in BKC. Among global markets, Hong Kong has the highest-priced office market in the world whereas in India, it is Connaught Place in New Delhi and BKC in Mumbai. If you plan on investing in a commercial property in BKC or any other location in Mumbai, Sunteck Centrako is then here are a few useful tips that you can consider: It is very important to do value assessment along with due diligence for a commercial property. This is because compared to residential property investment, the sole aim of commercial property investment is to make money. Therefore, it becomes necessary to study the value of similar properties in the vicinity. You need to do this in order to come up with a value before entering into negotiations with the seller. It helps to gather information on the kind of rental value other properties are attracting. You need to negotiate on the basis of numbers because commercial property sellers are different from residential property sellers. Therefore, to make a good deal, due diligence becomes necessary. You shouldn’t just go by the rent that BKC or any other area is commanding currently. You need to study the growth of rental value for the last few years to understand how it will grow further in the coming years. Another important tip for investing in a commercial property in BKC is to calculate earnings that you will be making once you have paid the taxes. Determine how much you will be earning from the property on an annual basis after you have deducted all the costs. It also helps to study the maintenance cost associated with the property. This cost varies across buildings. Another tip is to study exposure to risks and read all the necessary documents to be sure that you are making a sound investment.