I have been working in BKC over the last few years, first starting off at two different firms in Maker Maxity then most recently moving to The Capital Building in BKC’s G Block – the heart of BKC.
When I first arrived in October 2011 a few things have changed; namely, BKC has become more crowded, nicer & new grade A buildings have emerged & the restaurant and bar scene has taken it to another level.
And although banks still dominate the landscape as the largest tenants of BKC. It is changing.
In the last couple years, the largest deals to hit the BKC office market have not been in the banking space as they were from 2011 until about 2015 or so, This is reflective in a shrinking financial services space that is not just reflective here in India, but is global in nature. Investment banks are largely not as profitable as they were in years prior on the back of more automation, commission compression and over competition (especially here in India!) to name a few. Banks have been focusing on costs and if you want to save money then don’t look for an office space for rent in BKC, Mumbai. Banks will not be leaving BKC by any stretch of the imagination, but their footprint will continue to shrink as back-office jobs will be moved to less expensive locations such as office spaces in Thane & office spaces in Navi Mumbai, investment banking business lines will close & fewer people are needed than in years prior.
Owners of office space in BKC, do not fret. The slack is office space supply is easily being picked up by global tech companies such as Netflix, Google, Amazon, Facebook and the likes. And will continue to be so for the foreseeable future.
To take a step back, it’s interesting to see the global economy play out here in BKC. I don’t think there are many other parts of India where it would be this apparent. We are truly living in a global world and commercial real estate trends in other locations, such as the United States and Europe, will likely be mirrored in emerging market commercial hubs.
Now, what’s happening in the US that hasn’t reached India quite yet? The death of retail stores, but we will leave that for another article.