Companies once chose offices based on their proximity to South Mumbai or BKC. Today, access to talent is increasingly influencing these decisions, putting Navi Mumbai in the spotlight. Karan Sabhlok, whose family has been building homes across the city for four decades, is now expanding into commercial real estate.
Talent First, Then Cost
Is Thane–Belapur Road the next big business destination? Sabhlok believes it already is.
“A decade ago, companies chose offices based on how close they were to South Mumbai or BKC and where senior leadership lived. Today, it is entirely about talent access,” he says.
Connectivity has played a key role in this shift. The Atal Setu, Metro lines, the Airoli–Katai link and the Navi Mumbai airport have made the city easier to access from across the region. Many talented professionals already live in Navi Mumbai and commute to Mumbai for work. Companies can now draw talent from South Mumbai, Thane, Kalyan-Dombivli and Navi Mumbai itself, without employees losing hours on the road.
Large corporate occupiers also generate a second layer of employment in retail, hospitality, transport and other services.
The second driver, Sabhlok says, is economics. Rents in business districts such as BKC and Lower Parel range from ₹250 to ₹350 per sq ft, while Grade-A office space along Thane–Belapur Road costs between ₹60 and ₹90 per sq ft. “That is roughly a 70% saving on real estate overheads.”
For Global Capability Centres (GCCs), IT firms and growing businesses, these savings can be redirected towards hiring, technology and expansion.
Navi Mumbai is no longer seen merely as a back-office destination. Corporates are choosing it for primary offices and pre-leasing space 12 to 18 months before completion to lock in current rates. Connectivity draws companies to the corridor, while the cost advantage helps convert interest into commitments.
“Thane–Belapur Road has both,” Sabhlok says.
Opening the Door to Smaller Investors
According to Sabhlok, Grade-A office space was historically beyond the reach of ordinary investors. Owning quality commercial property meant buying entire floors or towers, with investments of Rs. 20 crore to Rs. 50 crore or more. The asset class was largely dominated by private equity funds, family offices and large investment platforms, while individuals typically opted for residential property.
That is beginning to change, he says. Because office space along Thane–Belapur Road costs considerably less than in BKC or Lower Parel, smaller units in Grade-A buildings are becoming more accessible. SEBI's framework for Small and Medium Real Estate Investment Trusts (SM REITs) also allows investors to access a share of specific, income-producing properties, with investments starting at ₹10 lakh. Warm-shell office suites priced below ₹1 crore offer another entry point.
The primary attraction is rental yield. Sabhlok estimates annual returns from office properties at around 6% to 9%, compared with roughly 2% to 3% for a residential flat. Commercial tenants also tend to sign longer leases and invest substantially in their own interiors and fit-outs, which can encourage them to stay longer.
He believes this shift could open commercial real estate to mid-sized business owners, doctors, IT executives, small and medium enterprises (SMEs) and family offices that were previously unable to access the asset class.
Demand, he adds, is already evident. Thane–Belapur Road was Mumbai's most active office corridor in the second quarter, while the city's office leasing reached a record in the first half of the year.
Sabhlok, however, cautions investors against overlooking the risks. Commercial property loans typically carry interest rates of around 9% to 10%, compared with 7% to 8.5% for home loans. A vacant office generates no rental income, and commercial property is more closely tied to economic cycles than residential real estate.
His advice to first-time investors is to assess the developer's track record, the quality of the building and the profile of potential tenants, and to “think in years, not months.”
What Makes a Good Commercial Investment
Over the long term, three factors determine the success of a commercial property, according to Sabhlok: location, building quality and the profile of its tenants.
Location comes first. Access to employment hubs and transport, along with an established corporate presence, matters more than the entry price per sq ft. Offices that are easy to reach are better placed to retain tenants during slower market cycles. This, he says, is why Thane–Belapur Road has consistently remained one of the most active corporate corridors in the Mumbai Metropolitan Region (MMR).
Quality comes next. Efficient glass façades, destination-control lifts, ample parking, flexible column-free floor plates and professional maintenance are among the features that encourage companies to renew their leases rather than relocate.
Unlike residential tenants, who may move out after 11 months, commercial occupiers invest considerably in interiors and technology infrastructure. This can support lease tenures of three to nine years. Over a 10- to 15-year holding period, a building with a healthy mix of established, blue-chip occupiers is also better placed than one dependent on a single company.
Returns require realistic expectations. Sabhlok estimates gross rental yields of 6% to 10% for Grade-A office space along the corridor. However, maintenance costs, property taxes and periods between tenancies can reduce returns by one or two percentage points.
“A net yield of roughly 5% to 8% is the number to plan around,” he says.
Rental growth can provide an additional source of returns. Commercial leases typically include rent increases of 12% to 15% every three years, while Grade-A office rents may rise by 2% to 4% annually, with capital values appreciating over time.
Even so, Sabhlok stresses that commercial property is not risk-free. A vacant office generates no income, and demand remains linked to economic conditions.
His conclusion is that commercial real estate rewards patience. Buying well-located, well-built space from a developer with a reliable delivery record and holding it through a full market cycle can allow rental income and capital appreciation to offer “more dependable income than a residential flat.”
Seventy Years, and the Next Bet
Kamdhenu is 70 years old, and Sabhlok attributes the group's longevity to one defining habit: discipline.
Indian real estate moves through aggressive market cycles, but the family has maintained a conservative balance sheet, minimal debt and a strong focus on execution. It has avoided over-leveraging to pursue speculative land banks and built a reputation for delivering projects six to nine months ahead of committed RERA schedules.
Sabhlok says the group has maintained a zero-litigation and zero-default record across four market cycles. Around a quarter of its current buyers, he adds, are repeat customers or members of second-generation families.
The group's next move does not mean abandoning its residential roots. Residential development in Navi Mumbai remains central to its business, with a township in Upper Kharghar and ongoing developments in Nerul and Sanpada.
The shift is towards a dual-track portfolio, with Grade-A commercial space expanding alongside residential development.
A recent four-acre land acquisition on Thane–Belapur Road anchors the Kamdhenu Business District (KBD) and forms part of a commercial development pipeline of 5.7 million sq ft.
The aim, Sabhlok says, is to serve customers across their life cycle, “from where they live to where they work,” through quality homes and high-yielding, institutional-grade workspaces.
