Real Estate Activity has picked up pace after a long lull in Mumbai’s Bandra Kurla Complex (BKC) as valuations in commercial property across the city recover from the economic slowdown. An unlisted pharmaceutical chemical company has bought 15,000 sq ft of space at Rs 31,000 per sq ft in the 16-storeyed Crescenzo, a standalone corporate building at BKC. Although the valuation of the deal is only around Rs 45 crore, analysts say this is an important deal as it marks the return of commercial realty. Dhaval Shah, director, Parinee Developer, which owns Crescenzo, confirmed the deal, but refused to disclose the buyer’s name. “With the prices in BKC bottoming out and now looking up, this is the perfect time for investors and corporates to take a fresh look at buying space in BKC,” he said.

BKC had seen a decline of up to 45% in capital and rental values, but finalised a deal last week that is around 30% higher than values prevailent in the area and almost on par with 2007 valuations. The slowdown between 2008 and May 2009 hit the Indian real estate market hard. While the residential market gradually stabilised, the commercial market continued to suffer and prices in Mumbai and New Delhi-NCR saw a 45% drop. This was fuelled by a lot of supply hitting the market, with several corporates putting their property up for sale. However, the situation seems to have improved by December.