MARKET ANALYSIS AND FINANCIAL FEASIBILITY FOR OFFICE SPACE IN VASHI, NAVI MUMBAI

In the present study, the micro-market selected is Vashi, Navi Mumbai. Vashi is the very first node which was developed in Navi Mumbai. The reasons for its growth was to shift the pressure of real estate development in Mumbai city. As a part of this, Agriculture Produce Market Committee (APMC) was shifted from Mumbai to Vashi. Vashi is spread across Thane creek and Arabian Sea lying in the outskirts of Mumbai. The study focusses on analysing the market conditions for commercial grade A office space in the micro market. The project is feasible only when it is legally permissible, physically possible, maximally productive and financially feasible. Financial feasibility plays an important role in future planning, risk mitigation, failure prevention and forecasting returns to an investor. The study involves detailed analysis of the NPV and IRR for commercial grade A space. Financial modelling is used to forecast changes in the value of business or cash flows and analyse the worst- and best-case scenarios. The location selected for the study is a hypothetical site in Vashi. The study concludes that development of commercial grade A office space would be financially feasible or not.