Mumbai realty beats the slump, draws buyers at steep prices
Modern India has sold apartments and penthouses in central Mumbai to a US financial services co for Rs 90 crore, at rates at least 30% higher than the last deals struck in the area
PRICES in Mumbai property market don’t seem to be affected by the general slowdown. In one of the largest deals in the residential property market, Modern India, a real estate and textile firm, sold seven apartments and four duplex penthouses to a US-based financial services firm for Rs 90 crore. The property situated in the 40-storey residential building Belvedere Court at Mahalaxmi in Central Mumbai totals 23,076 square feet , according to sources close to the development.
Belvedere Court is built on 1,01,000 square feet with a height of 149 metres. Each of the flats in Belvedere Court has an area of approximately 2,200 square feet. When contacted, Modern India chairman and managing director VK Jatia declined to comment.
Modern India’s deal with the US firm is about 30% higher than previous transactions struck in the same building a few months back. Most of the deals in Belvedere Court and in the nearby area, were struck in the range of Rs 29,000-30,000 per square feet, according to real estate brokers. The prices of these land deals are contrary to real estate trends countrywide. Tight bank lending has contracted the home loan market, pushing down prices, which had risen sharply in the past two years.
According to Kotak Institutional Equities Research, residential property prices in Mumbai have increased by 15% over the last six months across various locations, as against a price correction trend witnessed in most regions in India.
“We observed that prices have continued to rise in Mumbai since the last exhibition, Property 2007. Our Mumbai price index shows a 15% increase over the last 6 months. Indicative prices (per sq ft) in key locations in Mumbai are Andheri (W)- Rs 12,500, Bandra (W)- Rs 20,000+, Ghatkopar (W)- Rs 8,000, Goregaon (E)- Rs 9,000, Mulund(W)- Rs 6,500 and Worli- Rs 35,000,” said the Kotak report.
A few months back, Philips India had auctioned its 3,700 sq ft duplex on the third and fourth floor in Shanudeep Building, in Mumbai’s uptown Altamount Road, for Rs 13.5 crore or Rs 36,500 per sq ft.
In 2006, in the largest-ever residential transaction in the country, a four-bedroom flat at NCPA Apartments at Nariman Point, end of Marine Drive, fetched Rs 97,842 per square foot, or Rs 34 crore. Reports hinted that a UK-based NRI, bought the apartment in the name of Record Investments and Leasing.
Currently, Modern India is setting up a free trade and warehousing zone, a category of special economic zones in Pen tehsil of Raigad district. Sources said, funds raised through the sale of the Belvedere properties will be invested in the SEZ project.
Source : ET
NOTE: Peninsula Land is an active partcipant Piramal's builder group in Bombay , Pune & Goa.
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