Several big-ticket real estate deals have been concluded in the Mumbai real estate market and this may point to a steady recovery and overall progress. Mumbai’s real estate market has always been a hotbed for some of the country’s mega realty deals and this was not quite surprising to many in the past, Mumbai being home to the highest number of ultra-high-net worth individuals in the city. Also, the city’s real estate was and still is the costliest in the country, something that naturally led to big-ticket property deals courtesy India’s leading industrialists, business tycoons and corporate executives. However, post demonetization, the Mumbai realty market was considerably affected and a double blow followed with the introduction of RERA and GST. This led to builders being plagued with rising unsold inventory, particularly in the luxury and premium categories and rapidly dropping sales figures. Mumbai’s real estate market took a long time to recover and big-ticket deals were too far and few in between. Yet, experts believe that with several recent big-ticket property deals, all is well once again with the property market in Maximum City. Mumbai witnesses several big-ticket realty deals Mumbai’s realty market has been witnessing several big-ticket property deals in recent times and it seems to be part of a growing trend like yesteryears since the market has apparently recovered as per experts. Here are some of the mega deals that took place in Mumbai and property market developments which point to a brighter future ahead.
- Prestige Group, the leading real estate developer from Bangalore, has finalized a deal for two office projects situated in Mumbai covering 4 million sq. ft. with a view towards foraying into the commercial real estate market in the city.
- Prestige Group is in talks with DB Realty for coming up with a joint development agreement for DB Realty’s upcoming projects in Mumbai. There will be a brand new project at Bandra-Kurla Complex (BKC) and a residential venture named Turf View at South Mumbai’s Mahalakshmi.
- DB Realty has entered into a mega JV agreement with RMZ Corp for redevelopment of the 60-year old Kamalistan Studio in Mumbai into a major office project.
- Rustomjee Group has already taken over the luxury Crown residential venture from DB Realty.
- Sumitomo, the noted Japanese company, acquired a plot of 3 acres in the BKC (Bandra-Kurla Complex) for a huge amount of Rs. 2,238 crore or a price of Rs. 745 crore for every acre. This is the biggest per acre land deal in the country.
- The Blackstone Group also purchased the One BKC building at BKC (Bandra-Kurla Complex) for a whopping Rs. 2,500 crore. It is also purchasing an 800,000 sq. ft. commercial project called Inspire from Adani Realty for a sum of Rs. 1,900 crore in BKC itself.
- A business family paid a whopping Rs. 232 crore for buying 10 apartments at the Omkar 1973 project in Worli.
- In August 2016, JP Taparia purchased a duplex apartment spanning 11,000 sq. ft. at the Signature Island project in BKC for a whopping Rs. 60 crore.
- Essar Group sold prime commercial realty at Equinox Business Parks at BKC for Rs. 2,400 crore from Brookfield.
- Runwal Group is planning to purchase more than 2.7 acres covered by a land parcel of RMI (Rashtriya Metal Industries) located at Andheri for approximately Rs. 180 crore. Runwal has reportedly inked the MoU with RMI for purchasing this land parcel which will accommodate the latter’s factory and office. This could be the third largest land deal for FY2019.
- Kanakia Group has also ventured into an agreement for purchasing a 7 acre plot at Vikhroli from India Tube Mills for Rs. 363 crore.
- Kalpataru was the highest bidder for the 8 acre land parcel owned by Mondelez India in Thane for Rs. 280 crore.
- The iconic RK Studio was also purchased by Godrej Properties from the Kapoor family for an undisclosed amount estimated at Rs. 150-200 crore.
Is all well with the Mumbai property market? Mumbai has always witnessed its fair share of big-ticket real estate deals. In November 2014, HSBC purchased a sea-facing flat comprising 8,000 sq. ft. at the Raheja Viverea project in Mahalaxmi for Rs. 60 crore and in January 2015, Infosys co-founder Nandan Nilekani purchased a sea-facing flat in Worli’s Samudra Mahal building for a sum of Rs. 22.5 crore. The biggest ever deal for a single residential apartment in India came about in August 2015 when an industrialist purchased a triplex sea-facing penthouse in The Residence by Runwal Group on Nepean Sea Road for a whopping Rs. 202 crore. Kumar Mangalam Birla purchased Jatia House in Malabar Hill for Rs. 425 crore while Sajjan Jindal had bought Maheshwari House for Rs. 400 crore in the year 2012. Adi Godrej also bought Homi Bhabha’s famous bungalow Mehrangir for Rs. 372 crore. Peninsula Land, a company under the Ashok Piramal Group, purchased the 5-storeyed Bishops Gate for Rs. 272 crore in the year 2011. In a city where the country’s richest man lives in a 27-storeyed behemoth roughly valued at more than a billion dollars, these deals may seem commoner than you usually think. However, they did dry up a little in the last few years. It is good news for Mumbai’s real estate sector that they are back and how! The real estate market in the city has benefited from the clean-up effected by RERA and GST and more fence-sitters are now willing to invest. NRIs are also keeping the luxury market alive while big-ticket commercial realty deals and Mumbai’s upcoming spurt of infrastructural growth should keep the residential markets buzzing in several areas. Also, the lower GST on under construction properties is another game changer that will spur more well-heeled individuals to invest in luxury real estate in Mumbai.
