Again new highs for South Mumbai's real estate market?

Wednesday, February 23, 2011 · 0 comments has learnt that an apartment in NCPA Building at Nariman Point is up for sale. This building is last residential building at famous queen's necklace called Marine Drive at Nariman Point. It is only residential building in commercial center of Mumbai called Nariman Point. In 2008 one apartment bought by one NRI (None Resident Indian. That time apartment sold at around 1, 00,000 per square feet. That time that was all time high for any residential apartment transaction which letter broken in 2010 by building called Samundra Mahal at Worli. It was sold at around 1, 08,000 bought by ex banker's wife who lost his life in 26/11 terroristic attacks. This time it seems that it is going to cross all previous tries with you to understand some sense or nu-sense why some apartments command such a high prices.

1) Location:- In these high priced apartments have excellent location building like Samundra Mahal is just touching the Arabian Sea so has unmatched view. One can hear sea waves from the apartment and due to that these apartments have lots of light and air. Building like Sunita, Grand Paradi has amazing view of queen's necklace. La Palmas gives you superb garden cum sea view. NCPA has view of Malabar Hill, Marine Drive, Arabian Sea, Cuffe Parade and close proximity to Nariman Point and top hotel like Hilton and Taj.

2) Supply: There is very few new apartments’ blocks getting constricted in South Mumbai. It put lot of supply constrain in the market which takes prices to new high by little bit of demand.

3) Snobbish Value: - In these apartments who is who of India living and people especially newly rich wants that they should be associated with these people that is why it takes prices to new high. The way it happens in Hollywood any super star’s buying creates ripples in US real estate market.

4) Past Performance: In past 30 to 40 years these apartments has given constant superb returns to their buyers. People who bought apartments in these locations haven’t 10 times or 100 times multi baggers but even 250/300 times multi baggers. 3) Outgoings: Due to old society of these building they have developed enough reserves due to that these building has good source of income to maintain these buildings. Few of these building have very low outgoings (monthly maintenance) that attracts prospective buyer.

5) Stronger Hands: People who own apartments have very good holding power. These people never sell their property in distress due to their strong financial muscle. That creates unofficial demand constrain due to that prices gets up tick. thinks that there seems to be big frenzy due to that and people started buying these apartments with out thinking that yesterday’s performers might not perform tomorrow. In case of commercial space of World Trade Centre and Nariman Point that is exactly happened. Prices in Nariman point is still close to 1995’s level. These locations now totally isolated from other parts of city which expand quite a lot. New Business Center like Worli, Lower Parel and Bandra Kurla Complex taken lot of sheen from them. Now in the tech era location wont be so important and South Mumbai’s real estate market will under perform by huge margin. What do you say ?

Entry of Donald Trump in Mumbai’s residential real estate sector

Wednesday, February 16, 2011 · 0 comments

There are rumors in real estate sector that US billionaire and real estate magnet and owner of biggest casino of world Donald Trump is entering in real estate business in India. He is planning to build 60 story tower in South Mumbai. It will have super luxury 45 duplex apartments.

We at after hearing this thought about this one social event in our mind, it seems this is going to similar to that event. In 1999 before the tech bust or you may say peak of tech boom. That time Australian business tycoon and person who ushered limited over and day & night cricket concept Kerry Packer bought stake in Vinay Maloo and Nahata owned HFCL. Ketan Parikh stock broker before caught in 2000 stock scam was the host of that party. Nahata is same one who is also named in 3G scam. He sold his telecom identity’s stake to Videocon. Kerry Packer’s son James Packer came with his better half. He bought the stake in HFCL at around Rs.2000 per share. Once security scam happened share went below par also.
RealEstateDealStreet.Com agrees that Donald Trump is much smarter then Packer. He is hard nosed tough negotiator. He has good track record of making money through his real estate investment. There is one thing that he hasn’t accustomed to is that Indian politicians and bureaucrats. These two things can make or break any investment in real estate.
As per research by that market in south Mumbai is going to underperform by good margin. South Mumbai is going to have time pain also. Things are not going to be as rosy as they appear. We think that the way World Trade Centre (commercial center at Cuffe Parade) is now totally isolated from rest of Mumbai. One day people will feel same for South Mumbai. Nariman Point was once top commercial center of Mumbai alone but Asia also. Now occupancy is around 60%. New Centers like Worli, Lower Parel , Bandra Kurla Complex even suburbs Andheri , Malad, Kandivali and New Bombay will give tough fight. People have good holding power that is way it is managing at these levels. Once open a time due to RBI, Stock exchanges etc. you need to be close to workplace but due to internet now not all the offices need to be close to main business centre. In South Mumbai good amount of buildings are not well maintained and have perennial problem of parking. These buildings don’t have amenities like Gym, swimming pool etc. thinks due to these issues real estate investment is going to face major challenges going ahead. Any way welcome to Mr. Trump. Your feed back is important to us.

Relation between scams and real estate sector, bureaucrats and all time favorites politician

Tuesday, February 8, 2011 · 0 comments

There was time any financial scam used to happen few things were common. In all scams before 2000 whether it was Hari Das Mundhra in 1970’s or Harshad Mehta in 1990’s or Ketan Parekh in 1999 stock market operators, politician and bureaucrats were common player. Now it seems real estate sector have replaced stock market .It is understand able it’s involvement in sale of defense land or housing finance scam but  latest 3G telecom scam also has element of real estate also. Let’s discuss about this why this sector is performing like this.

This sector actually was always unorganized any one who has land and money or both and knew how to manipulate law became builder. This sector started its journey from land scarce and financial capital Mumbai. It faced scare of mafia. After that with the help of politicians and bureaucrats it learnt how to manipulate the system. One of Maharastra party chief and one cabinet minister form Kokan region helped them who to extract the juice from government land and public. After seeing lucrative business like this some other players in other cities started. This sector became good ground for black money investment. Builders also became thick skin. Some of them likely to be arrested very soon.
The reason behind all this because there are no regulatory bodies for real estate sector. Like for stock market we have SEBI and for banks it is RBI. Due to that any one can become builder or real estate broker. India should have some regulatory mechanism to make this sector more transparent and efficient. awaits your response….