Mumbai is a vastly spread city in which commuting distances dampen energy levels and performance efficiency.
By Ramesh Nair, Managing Director (West), Jones Lang LaSalle India
Mumbai is a vastly spread city in which commuting distances dampen energy levels and performance efficiency. It has been a constant effort of prominent corporates to access a serene and luxurious lifestyle without having to travel to the city's fringes. At long last, South Asia's leading financial hub - Bandra Kurla Complex - is witnessing the arrival of premier residential projects which provide the required options.
For CXOs and senior management personnel of large banks, financial institutions and corporates preferring to stay close to their work places. Bandra-Kurla Complex brings the advantage of a business area located in the heart of the city. Demand for luxury homes there also comes from owners of diamond businesses from the nearby Bharat Diamond Bourse.
Going forward, it is expected that MMRDA will offer a number of residential plots for its further evolution as Mumbai's premier luxury residential nexus. The residential supply pipeline around BKC will also be augmented by land coming from redevelopment in adjoining areas such as Bandra West, Bandra East, Kalina, Kurla and Kalanagar. However, given the land prices in Bandra Kurla Complex's immediate neighbourhood only super-luxury apartments are viable in this exclusive catchment.
Residential property rates in Bandra Kurla Complex currently stand at Rs. 40000-45000/ square foot. In the immediate neighbourhood of Bandra East, rates range from Rs. 25000-30000/square foot. Despite the high price points, the demand for such residential properties in BKC has seen a considerable increase over the last 3-4 years. The pressing need for residential complexes in and around Mumbai's commercial zones is axiomatic, but Bandra Kurla Complex - due to its unique location and planned nature - offers more than the usual benefits to residential property buyers and investors:
Residential Market Drivers
- Given the number of senior professionals and expatriates working in BKC, finding tenants is not proving to be any kind of challenge for property investors
- With the current under-construction supply being very limited, residential values in BKC will definitely continue to rise over the next 1-3 years. Year-on-year appreciation of residential capital values in this area has been between 10 to 12% over the last couple of years inspite of the overall sluggish residential market in Mumbai.
- BKC is home to some of Mumbai's most prominent office complexes, which directly drives white-collar residential demand
- The presence of Dhirubhai Ambani International School, The American School of Bombay, the MCA club and the Trident and Sofitel Hotels
- Access to high quality medical facilities such as Asian Heart Institute and the Lilavati Hospital
- Proximity to domestic and international airports, as well as the Western and Eastern Highways
- Excellent infrastructure, regulated traffic, no-hawker zone
- Hygienic surroundings, ample green cover and open spaces
- Mumbai’s largest mall - Market City by Phoenix - is in adjoining Kurla
- Unlike many old standalone residential projects in other high-end locations in Mumbai, the newer projects in BKC offer modern amenities such as gyms and swimming pools
Mega luxury projects such as Signature Island by Piramal Sunteck Realty are among the pioneering initiatives being taken by the developer community to cater to the high demand for exclusive homes around Bandra Kurla Complex. These projects have been specifically designed and executed with the city's elite and their requirement of peaceful living, a premium lifestyle and proximity to work in mind.
Sunteck is also developing Signia Isles and Signia Pearl in BKC. The booking for some of these projects are only on an invitation basis. Another leading residential project in BKC, currently under construction, is Naman Residency by the Shree Naman Group. Developers such as Rustomjee have launched Oriana and Seasons, Kalpataru has launched Sparkle and Hubtown has launched Sunstone in Bandra East.
Impact of office, retail and hospitality on residential
- BKC's evolution as a luxury homes destination is going to have a ripple effect on the F&B and entertainment retail sectors there, as well. There is no denying that the area currently falls short of the requirement in this respect
- Proposed luxury hotels such as The Bellagio and MGM Grand, the luxury shopping mall being developed by the Maker Group will further embellish BKC's status as Mumbai's pre-eminent real estate destination
- The creation of an additional office supply of 2.5 million square feet in 2012 will raise the number of professionals working in BKC by another 20,000 which would in turn fuel residential demand.