.JPG)
The rising costs of commercial real estate in Mumbai’s corporate hotspots such as Lower Parel and Bandra Kurla Complex, coupled with increasing traffic snarls and high commute costs (time and money) are compelling business owners to consider viable alternatives in other localities. This is where Thane, conveniently located on the fringes of Mumbai, has been rising to the fore as a top destination for commercial office space. In fact, as per a recent report by Property Share, a tech-driven real estate platform, of the nearly 21 million sq. ft of Grade A supply of office space to be added in Mumbai by 2025, Thane will contribute an impressive 3.5 million sq. ft.
The factors contributing to Thane’s growing popularity as a hub for commercial office space is its strategic location that offers excellent connectivity, the area’s recent economic growth spurt, cost effectiveness of commercial real estate, and excellent project options that meet the needs of businesses from diverse sectors and of various sizes.
A happier workforce
A recent study by Kantar TNS states that nearly 50 per cent of professionals seek homes closer to their place of work. Thane’s premium but affordable townships, ample green cover and open spaces, and excellent social infrastructure including reputed schools, hospitals and healthcare, and malls and entertainment zones make it an ideal choice for young families seeking an elevated and balanced lifestyle. Thane’s participation in the Smart Cities Mission has spurred a slew of initiatives that aim to infuse sustainability and cutting-edge technology to improve residents’ quality of life. Organisations that have the foresight to invest in office spaces in Thane have access to a vibrant pool of potential talent. In fact, a conveniently located workplace that is easily accessible to employees may also boost morale and enhance job satisfaction – researchers from the University of the West of England claim that commuting for more than 20 minutes a day reduces job satisfaction, increases strain and worsens mental health for employees.
Better connectivity and improved infrastructure
Thane’s extensive network of roadways and railways ensures seamless connectivity to major business, residential and entertainment centres in Mumbai. Thane’s railway station is a well-established transportation hub, and the proposed railway station that will be situated between the Thane and Mulund railway stations will facilitate an even more seamless commute to the Wagle Estate area. While the Eastern Express Highway offers easy access to key destinations in Mumbai, the upcoming 12.955 km extension of the Eastern Freeway to Thane will enable a signal-free route from Thane to Colaba in South Mumbai.
The upcoming Thane-Borivali Twin Tunnel, which is India’s longest and largest urban tunnel project, will reduce the time taken between these two locations from over an hour to just 12 minutes. Further, Thane’s proximity to the projected Navi Mumbai International Airport has further enhanced Thane’s appeal as bustling business centre. In recent years, Thane has witnessed a tremendous spurt in infrastructure projects, which is projected to further boost the region’s real estate market. These include the expanding Metro network, the Thane-Kalyan Waterway Project and the Eastern Motorway extension from Thane to Kalyan, all of which will reduce the time taken to travel to Thane. All of these further underscore Thane’s rising prominence as a coveted destination for commercial office spaces.
A lucrative investment proposition
Rising rental prices indicate that the average of 8 per cent returns that real estate offers can increase to 15 per cent or more – the promising appreciation value makes investing in commercial estate an especially attractive alternative. Adding to this are the various government initiatives and incentives to promote business growth in Thane city, which include tax benefits, subsidies and more efficient processes to obtain permits and licenses. Put together, these can significantly reduce the cost of doing business in Thane.
