Mumbai seems a tough option for startups. At least if we take a look at the statement of Milind Deora, who is a prominent figure in the city’s real estate and startup community. He lately said that the prices of real estate is skyrocketing and therefore becoming an obstacle for startups. He added that the high cost of commercial spaces is making it difficult for new businesses to establish and thrive.
Mumbai is known for vibrant startup ecosystem and is often the first choice for entrepreneurs. However, the soaring real estate prices are becoming a barrier for many startups. They are being forced to cut back on their operational space or relocate to less central areas. As an aftermath, their growth prospects are being affected and the overall dynamism of startup scene in the city is also being impacted.
Startups usually operate on tight budgets and securing an office space in a prime location is a major financial strain for them. The challenge is further compounded by the skyrocketing prices of real estate in Mumbai. The commercial rents are often very high.
The rising real estate prices simultaneously have broader implications for the economic arena of Mumbai. The city’s attractiveness as a hub for new businesses may reduce over the time if the startups struggle to find affordable spaces. It is here to note that startups are crucial for driving economic growth and creating jobs. Their difficulties in securing affordable space may result with a ripple effect on the overall economic health of the city.
Calls are being made to make the commercial space affordable and bring supportive policies for the startups. Government should encourage development of co-working spaces and simultaneously provide incentives for landlords to offer lower rents.
