India tops the chart in office occupier market in Asia. It has around 425 million square feet of office market having an annual absorption of 30 to 35 million square feet. Mumbai - the financial hub and commercial capital of the united states has long been the most effective position for commercial space investment CBD for sleep. With a sizable quantity of growth opportunities in commercial properties, investors within the united states and overseas were showing high interest in commercial property in Mumbai. But there is a depressing scenario in this regard, where Mumbai is facing a 4% dip in office rentals in the first Quarter Q1 of the season 2015. While the real estate in Mumbai over the last few years remain unpredictable because of global economic uncertainty, the investors are keeping close eye on the capital-value appreciation and office space investment. Whilst the rental yields in and around Mumbai decreases, the value and appreciation of commercial property in Mumbai can also be vulnerable to witness a downfall.

The CBD Nariman point, that has been regarded as being Mumbai's power location and was called as the Manhattan of Mumbai is currently losing its importance off late. The Nariman point area has seen a downfall of up to 3.4% in rentals within the last few year. This downfall might be because of the proven fact that the demand for residential properties in Mumbai have moved towards its suburbs, which also drew the demand for office space to suburbs. Many corporates and commercial establishment have migrated from the CBD to Bandra Kurla Complex (BKC) and Lower Parel. This shift in corporate interest is due to abundant supply in BKC, Andheri and Lower Parel and also because of insufficient amenities, parking area, and high rentals in the original CBD. This migration in the past five to six years have contributed a lot to the 4% fall of rentals in Mumbai property.

On another hand, various software companies such as Cognizant, Google, Wipro, Accenture and Infosys are searching for Grade A office spaces throughout the country. At the conclusion of March 2015, the total space utilized by Grade A office spaces have risen to 8.5 million square feet, which will be 20% significantly more than 2014. As IT companies prefer metros like Mumbai, Bengaluru and Chennai to expand their base because of their infrastructural base, they've consequently increased myriad of employment opportunities. This have helped in increasing the demand for residential spaces in these cities consequently increasing the purchase price of flats in mumbai

Whilst the corporates have shifted their interest towards cost effective commercial spaces, the vacancy level in Mumbai have increased as much as 17% in comparison with previous years. The caliber of office space, parking areas, small floor plates, safety and maintenance in Nariman point have also contributed the shift from CBD to other business districts making the rentals decrease here in CBD. The competitive lease rentals and simple connectivity in BKC and other suburbs have also triggered this shift.

However though a particular location may witness a downswing in rental rates, the demand for commercial space around the world will never decrease. Not only the multinational companies, export firms, and bank are in be aware of commercial space but also mid-sized and small-sized companies may also be trying to find office space to expand their business in a number of cities.

Sulabha Kulkarni can be an enthusiastic writer who has an eye on the property trends in the country. A born Mumbaikar, always eager for a talk on Mumbai Real Estate over Wada Pav and a warm cup of chai! Loves writing for IndiaProperty.com