Commercial property deals facing slowdown in Mumbai

By AT Bureau

Mumbai:
According to the fresh reports property market is facing downturn across the country and now its turn of commercial property market in Mumbai. Reportedly very small number of overseas housing finance banks is holding off on large realty deals.
Following to this crisis approx after the 8months letter of intent has signed, Citibank India, it is learnt, is taking time before sealing the purchase of 2.97-lakh sq ft space in FIFC Tower at Bandra-Kurla Complex (BKC), which is constructed by Purnendu Chatterjee promoted-TCG Urban Infrastructure and New York-based realty firm Vornado Realty Trust. The deal is having worth of estimated 1000cr it would be the biggest deal ever in commercial property market in Mumbai. So far, it was ironing out issues such as the building’s naming rights, car parking and interior fittings.
On the other hand, HSBC is deliberating harder about leasing 2.5-lakh sq ft office space in the under-construction Indiabulls Financial Centre at Elphinstone and similarly Deutsche Bank, which was seeking an office space of 1 lakh sq ft. Recently a commercial deal between the two biggest companies of country Sahara Group and Parinee Developers which is worth Rs.70cr crore a year for 2.5 lakh sq ft space is the biggest ever for a commercial property— is also temporarily held up.
According to the market experts “in Mumbai out of 50million sq ft 26precent office space is lying vacant, where approx 4.8million sq ft is leased or else purchased.”