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.
- 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.
- 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.
- 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