Mumbai’s real estate climbs to unprecedented heights

November 3, 2006	(Be the first to rate this story!)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

Residential and commercial properties in Mumbai have reached unprecedented heights with India’s most expensive commercial locations now being located in South Mumbai’s Nariman Point and the secondary business district of Bandra Kurla Complex (BKC).

With demand clearly in excess of supply, the market has scaled the 1995 peak levels with prices of good quality large apartments in well-maintained, older buildings and new projects in South and South Central Mumbai have crossed the Rs30,000 and Rs40,000 per square foot mark respectively, according to a report by Cushman & Wakefield India, a real estate service provider.

It is estimated that over 500 prime apartments with an average area of 2,000 square feet or more are under construction or will be launched shortly in this area.

This additional stock slated for release over the next six to 12 months is expected to stabilise prices.

Whether residential or commercial, the preference today is for new developments with superior standards in terms of construction and design.

It obviously reflects a lifestyle shift as these residential projects offer well-equipped gyms, swimming pools, landscaped gardens, adequate parking facilities, professional maintenance and security. Newer buildings also have improved standards of construction, state-of-the-art designs, earthquake resistant structures, high-speed elevators and better finish.

Real estate consultants say this preference is strong despite property taxes and maintenance costs being exponentially higher.

Even the preferred commercial properties are now in BKC which has newer buildings with modern amenities, better environment and definitely ample space for car parking as compared to Nariman Point where motorists have an exasperating time finding a parking space.

Strict architectural standards set by the Mumbai Metropolitan Regional Development Authority have ensured that buildings in BKC are comparable to the best in the country.

BKC’s other plus points are its buildings have singular ownership that helps in better maintenance standards. The complex is also popular because of its central location being closer to employees’ residences and the airport.

Even though Nariman Point still holds its important position, prices in BKC are at least 25-40 per cent higher. Apparently, a strong demand for international standards of construction in office space form corporate tenants and diamond merchants has driven the values upwards.

On the leasing front, good quality stock is limited and rents in South and Central Mumbai have gone up 25-30 per cent over the last 12-18 months while the rise in the northern suburbs has been even higher.

A three-bedroom apartment in a prime complex measuring 1,800 square feet in Malabar Hill was recently leased for a rent of Rs250,000 per month while a two-bedroom 1,050 square foot flat in the western suburb of Khar fetched Rs100,000 a month.

Source: www.gulfnews.com

News Published Under:   Real Estate India, Mumbai |

Comments