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

Wednesday, February 23, 2011 ·

RealEstateDealStreet.com 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 RealEstatedealstreet.com 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.


RealEstateDealStreet.com 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 ?

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