The demand for office spaces in this location is driven primarily by media houses, the IT/ITeS sector and pharmaceutical companies. The major occupiers in this micro-market are mainly concentrated on the Andheri-Kurla Road. There is a significant difference in neighbourhood profiles, development scenarios and user perceptions of the established commercial areas on Andheri-Kurla Road versus the immediate site vicinity. This translates into a significant difference in capital values as well as rentals in office buildings across the various locations within this single micro-market. The current average rentals for Grade A properties along the Andheri-Kurla Road are in the range of Rs 115-125 per sq ft per month.
The Andheri-Kurla Road is dotted with corporate office space developments. Apart from the multi-occupier buildings, there are a substantial number of built-to-suit office blocks in the area.
Andheri East is an attractive destination from an investment perspective. Currently, the residential property prices in Andheri East range from Rs 16,000-20,000 per sq ft on built-up basis, depending on the exact location, age of the building, amenities available, construction stage (if under construction), and builder’s brand.
The writer is chairman, ANAROCK Property Consultants