The Impact Of Location On Commercial Property Value

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While hunting for commercial properties in Mumbai, you must have noticed that some commercial properties command exorbitant prices whereas others command lower prices. While there could be multiple reasons for a property to be priced differently, location is one of the key factors influencing the price. 

 

Both the micro-location and macro-location can impact the price. Micro-location means the immediate road and neighborhood of the property. Macro-location means the broader area such as the district or region.

 

If you have a commercial property in Chakala, Andheri East, Andheri East would be the macro-location and Chakala would be the micro-location.

 

Let’s understand how price varies differently for properties at different locations.

 

  1. Inner cities

 

If we take the example of Mumbai, places like Worli and Lower Parel are the inner cities that command the highest price. Commercial properties in Worli, Lower Parel, and Juhu will be priced higher than others. These cities are some of the most expensive business locations. They are close to infrastructure, transport links, labour etc which makes them an ideal location for setting up businesses.

 

  1. Suburbs

 

The suburbs of Mumbai include Andheri, Ghatkopar, Vikhroli, Bhandup, Powai, and Chembur among others. Offices in suburban Mumbai will have slightly lower prices compared to the main cities. These cities are close enough to Mumbai and thus command a premium (though lower than Mumbai) due to the easy accessibility and infrastructural developments.

 

  1. Satellite cities

 

Satellite cities will have even lower prices as they are farther away from Mumbai. Thane, Dombivli and Navi Mumbai are the satellite cities of Mumbai. These cities are witnessing rapid development. But office spaces in Thane and Dombivli are comparatively cheaper. Entrepreneurs who don’t wish to spend extravagant amounts of money on office space can go for commercial properties in satellite cities.

Properties in prime locations such as bustling city centres typically command higher prices due to easy accessibility and the higher volume of potential customers or clients. Proximity to major transportation hubs, like highways, airports, and public transit, further enhances a property’s value by facilitating easy access for employees, customers, and suppliers.

The surrounding infrastructure and amenities to play a crucial role. Commercial properties in Mumbai with restaurants, shopping centers, and recreation spots nearby are more attractive to businesses looking to provide convenience to their employees and customers. High-quality infrastructure including advanced communication networks also adds to the property’s desirability.

The safety and reputation of the neighborhood also influence commercial property values. Areas with low crime rates and a positive image tend to attract more businesses, driving up property values. At the same time, properties in less desirable or unsafe locations struggle to retain value.

Browse through the properties listed on our website for offices that suit your budget needs and preferences. 

Article authored by: Team Proptranxact

Date: 20th June, 2024

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