Mumbai's property market, which has been reeling under pressure, saw a pick up in activity in the marque residential properties. The prime properties are up for grabs, with a starting price of Rs 50 crore, going all the way to Rs 120 crore.2013 was a year most real estate developers would want to forget.
Also Read: SC frees pvt forest land for realty deals; Oberoi in focus
One of the biggest casualties was the Mumbai property market. While prices may not have crashed the way they did in the 1990s, the realty sector was hit badly with a massive slowdown in sales. Developers so far have refrained from correcting prices and that has kept buyers at bay.
According to real estate rating agency Laisas Foras, the unsold inventory could take as long as 58 months to clear and that is the highest in over eight years. However, simultaneously a very interesting trend was spotted. Mumbai’s high-end market is suddenly witnessing higher traction.
Marque residential properties in India’s commercial capital are being sold and for a variety of reasons. Corporates and MNCs are cashing out of their guest houses and accommodation meant for top company honchos. This is due to the fact that most corporates are moving headquarters from South Mumbai to Bandra Kurla Complex (BKC) and other locations in the city like Andheri, Worli and Lower Parel.
For instance, Hindustan Unilever (HUL) decided to sell prime apartments in 2013. The iconic Cadbury House located in the heart of South Mumbai had also got a new owner in 2013. It was sold for a jaw dropping Rs 350 crore to a diamond merchant, Dilipkumar Lakhi.
High Networth Individuals (HNIs) have also decided to sell their prime properties. For instance, the famous Kamal Mahal at Carmichael Road. The property, in the past, had been the home of the Ambani’s and the Godrej family. It is learnt that a 3-BHK here has been put on the block for Rs 65 crore. Mayur Mahal at Juhu Tara Road is also up for sale for a whopping Rs 120 crore.
It is believed Bollywood stars Priyanka Chopra and Hrithik Roshan are in the running to buy this property. Mayur Mahal has five bedrooms and is spread across 1,880 square meters.There are other high-end properties also that have recently gone up for sale -- a 3-BHK in Breach Candy for Rs 30 crore and a 6-BHK in Peddar Road for Rs 53 crore.
Monal Jalota, chief associate – International Project Marketing, Knight Frank India, said: “The trend we are by and large noticing in the Mumbai residential market is for high-end properties and it is both for disposition and acquisition. The trend for disposition or sale is generally with a large MNCs and corporates who had an existing portfolio of properties which now no longer seems feasible to them because usually these properties are used to house the expat employees or the senior management or overseas employees.”
“Also, the head offices of most of these MNCs have now shifted base from Nariman Point or earlier popular areas to Central Mumbai, Lower Parel, Bandra, etc. So, there has been a gradual shift that we have seen in MNCs preferring to buy – dispose off their current assets and then reinvest in assets which are more feasible for them at this point,” she added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
