It seems the dizzying property prices of Mumbai's key business district has made real estate rates in New York's Manhattan borough appear like a bargain-hunters paradise.
Uday Kotak, the founder and director of the Kotak Mahindra Bank, expressed shock at soaring property rates in the country's financial capital in response to a tweet by Nilesh Shah, the managing director of Kotak Mahindra Asset Management Co Ltd
“Wow Nilesh. That’s less than half the rate at Mumbai’s BKC!,” Kotak said on X platform while referring to Shah highlighting property prices in BKC, which is home to top Indian and multinational companies, including Jio World Centre and an Apple store.
Shah said the going rate of a commercial office building in New York is Rs 16,000 per sq. ft. He was quote tweeting an investor (with handle name @TripleNetInvest), who mentioned a property transaction, which saw a discount of 70%.
The New York-based investor was referring to a recent deal in Manhattan, in which 778,000 sq. ft tower was sold for $150 million. It was previously sold for $500 million in 2014. The city has been witnessing a “massive distress in values for prime real estate space”, the investor tweeted.
Netizens react
The rates didn’t surprise many of the users on the internet. As the conversation unfolded, an X user said, “The property rates are highly inflated in Indian cities. This is even less than Pune's commercial space.”
Another X user, Rohit D Kriplani, tweeted, “Surely BKC isn’t available for 32,000 per sq.ft on carpet area. That would be only the land cost + BMC premiums.”
Recently, cricketer Yashasvi Jaiswal had bought an under construction 1,100 square feet flat in Mumbai for Rs 5.38 crore in the Ten Bandra Kurla Complex (BKC) project in Bandra East, which translates to Rs 50,000 per sq ft.
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