It is hard to be dazzled in Mumbai real estate.
The offerings are routine. The scale is limited due to small plot sizes in most parts of the city. Apartment sizes are shrinking. The marketing is lackluster. Exceptions are rare: the last project that had me stunned by its vision was Lodha World Towers at Lower Parel. And that was over a decade ago.
Three months back another project found itself into public imagination through an intense marketing exercise: Birla Niyaara at Worli. Birla is a new entrant in the real estate business but it has carved a potent reputation in that short period. With Niyaara, it will embark on its most ambitious project at one of the most premium locations of Mumbai.
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The land parcel of 14 acres is clear and previously housed the textile mill of one of its group companies. The scale of land parcel in a location of this significance will ensure that the company will aim to make this the landmark project for the company. With this in mind – I made a visit to the project over the weekend.
On entering the sales-office, the ambience is set for a relaxed environment. It’s clear from the décor around that the aim of this offering is to be premium. It’s also clear from the experience that this is a project targeting senior professionals with a corporate profile. It is however unclear why three months into the marketing blitzkrieg, no sample flat has been made ready to show to a prospective home buyer.
The brief contours:
- Three Towers in the project
- Wide spectrum of amenities
- One tower of 77 floors of 422 apartments is currently up for sale. Remaining two towers will be launched later
- 86% or 363 units of the inventory are dominated by 2BHK & 3BHK’s. There are 170 units of 2BHK’s and 193 units of 3BHK’s
- The remainder of the inventory primarily contains 4BHK’s and above
- Pricing at an all-in level (including GST, Stamp duty) is around INR 53k-54k per square feet. Hence a 2BHK of ~850 square feet will be around INR 4.60 crore
- Possession date as per RERA is December 2028
- Payment to be done as per construction. No flexible payment/pre-EMI scheme
It’s tempting to address the topic of price first-up but let me come to that aspect last – after evaluating the several aspects of the project. The first thing that strikes you about this project is the:
Density: With around 1,200 units, this will be not as dense as most other projects in the vicinity. In that regard – Niyaara deserves credit for not taking the easy route of building a greater number of units with a smaller size to fit a lower price point for the customer.
Product mix: It has a wide spectrum of offerings in the same tower. It is dominated by 2/3 BHK’s, but even the 4BHK’s and above have a meaningful contribution. At current prices, the same tower will house a customer of INR 4.5 crore as well as a customer of INR 15 crore. Suitable demarcations will be made for the top-end clientele but I suspect that a customer at the top price point prefers a surrounding of his own wealth standard and has options nearby in other projects.
Apartment and Bedroom sizes: One of the biggest drawbacks in most new projects with fancy amenities is the size of apartments. Sizes are small while bedroom sizes have shrunk to levels that make a mockery of the word ‘luxury.’ Buyers invariably purchase an apartment in those, treat it as a compromise and quickly scout for more livable options. The gentry of the project gets altered dramatically over a modest period of time. In that regard – Niyaara is a worthy differentiator amidst its wide portfolio of units. It addresses a segment that has found it tough to adapt to the new reality of real estate: South Bombay owners looking for a swap into Central Mumbai. In Niyaara, configurations are such where a premium customer can buy and treat it as his final residence.
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Amenities: It’s become very difficult to assess the quality of amenities at such early stages but I would reckon that for the limited density in the 14-acre land parcel, the wide-open space will be a key strength in attracting customers.
Possession: Super-tall structures take time in execution even with the best technology at hand. The contractor for the project is yet to be finalised. The RERA possession date is a distant December 2028. In my view this is a big drawback for the project.
And finally….Pricing & Payment Plan: At Rs 53-54k per square feet, it is expensive for an early stage under-construction project when there are ‘competing’ products at similar price points that are ready-to-move or almost ready-to-move. Perhaps it may have been more palatable if a smart payment plan was on offer. Unfortunately, no such offering exists. These potentially marquee projects with a focused customer audience need momentum. At this pricing and payment plan, I am uncertain if we will see that in this project. I am however certain if it sees strong interest, it will be at the cost of digressing from the customer base it is targeting.
At its core – with its inherent strengths and a solid product--Birla Niyaara could have been a blockbuster. I was waiting to be dazzled. Instead, it left me... wanting more.
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