South Mumbai property rates crash 30% as buyers miss the ‘view point’
But not any more as new apartments which tend to block the views are depressing property values by up to 30%
Jun 22, 2013
Source : The Economic Times

 

MUMBAI: Marquee apartment buildings in south Mumbai with views to die for (of the sea, the Queen's Necklace, the Race Course) fetched its owners unheard-of prices till a few years ago. But not any more as new apartments which tend to block the views are depressing property values by up to 30%. The art deco Kamal Mahal, which was once the home of the Ambani and Godrej families, on Carmichael Road now has the high rise Imperial Towers by Shapoorji Pallonji on its east side blocking the view residents had of the city's skyline over Tardeo.

Views from apartments at the relatively new Lodha Bellissimo in Mahalaxmi would soon be blocked by the new 82-storey Minerva tower being built by Lokhandwala Infrastructure.

Residents of Prabhu Kutir and the 40-yearold Crystal building on Altamount Road have a similar story. They have lost a lovely view of Marine Drive an the famous Queen's Necklace because of a project by Rohan Lifescapes. "This is what one paid for at these marquee locations, the view," says Sanjay Dutt, executive managing director - South Asia, at property advisory firm Cushman & Wakefield. "With the view gone, prices will be under pressure." Apartments on the east side of Kamal Mahal on Carmichael Road today have no takers , says a property agent, who has been helping a few owners find buyers. Rates in the building are down from Rs 1 lakh per sq ft to Rs 70,000 per sq ft today but even at such low rates for the area it's been tough finding buyers, he says. The 25-storey Usha Kiran building on the same street, which was one of India's first skyscrapers and has residents such as film producer Pritish Nandy and Vijay Mehta of Lilavati hospital, has a similar storey to tell.

The Lodha Bellissimo with three 48-storey towers at Mahalaxmi promised exclusive views of the race course below and the sea to its residents. To the utter dismay of apartment owners — which includes the likes of cricketer Ravi Shastri and Murali Kartik and actor Juhi Chawla — the view of the race course has been blocked by 82-storey towers that Lokhandwala Infrastructure is developing. "A major part of the C-wing and some part of the B-wing has been impacted. Rates are down 30%," says Akhil Kapur, owner of real estate brokerage firm AJ Housing. Rates for affected apartments here are down from Rs 55,000 per sq ft to Rs 35,000 per sq ft.

Shivang Rajan, a resident of the C-wing of Lodha Bellissimo is a disappointed man. When he bought the apartment, the C-wing was the most sought-after and had a higher price compared to the other two as it offered a better view of the race course and its greens. Then, six months ago Rajan and his neighbours came to know about the new building. "After spending more money and purchasing a C-wing especially for the view, it's a complete disappointment to see a new construction blocking it," says the Rajan, the owner of a construction business himself. The view, especially the sea view, does fetch a premium in Mumbai, says Anshuman Magazine, chairman and managing director of property advisory firm CBRE South Asia. Dutt of Cushman & Wakefield explains that the price and premiums of residential apartments are a factor of pin code or location, the quality, specifications, amenities and profile of residents but a major factor is still the view.

Latest Realty News

Maximum demand for 2BHKs in Dhanori
Jun 22, 2013
PUNE: Dhanori, located along the eastern side of Pune, is becoming a popular destination for those looking for 2BHK units. According to data with MagicBricks.com, in Dhanori, 2BHK apartments accounted for the maximum supply at 49 per cent during the Jan-Mar 2013 quarter.
Condominium concept popular amongst Mumbai middle class
Jun 22, 2013
MUMBAI: Nina and her husband are working professionals with two school going children. Her apartment complex recently signed up a Property Manager, who gets the household chores done, including delivering lunch for the two children and her by 7.45 am.
Credai hopes efforts on reforms will continue
Jun 21, 2013
MUMBAI: The Confederation of Real Estate Developers’ Association of India is hopeful that the new Union Housing Minister, Girija Vyas, will continue the unfinished task of her predecessor on reforms.
Towards better roadways in Pune
Jun 20, 2013
PUNE: There are often comparisons made between the infrastructure of Mumbai and Pune. The popular consensus seems to be that both cities are equally challenged as far as supportive infrastructure is concerned. This is inappropriate for two reasons – one, Mumbai’s growth pattern has been very different from Pune’s.
Real estate draws domestic venture funds, as telecom lures foreign ones
Jun 20, 2013
MUMBAI: Venture capital firms based in India appear to find real estate projects more lucrative. The bulk of these funds has been parked in real estate projects, according to the Securities and Exchange Board of India data.
New real estate bill is a bitter pill the industry needs for long-term cure
Jun 20, 2013
MUMBAI: The proposed real estate bill, if implemented, will hamper cash flows and escalate the cost of capital of realty firms, besides limiting overall growth of the industry.
How new real estate bill could reshape the realty ecosystem?
Jun 20, 2013
MUMBAI: 1) Project Registration When the Real Estate (Regulation and Development) Bill 2013 comes into effect, all projects will have to be registered with a real estate regulatory authority.
Borivali West not viewed as a suburb anymore
Jun 20, 2013
MUMBAI: Borivali West, classified as one of the suburbs of Mumbai, grew by 22 per cent in the Jan-Mar 2013 quarter. The average price of the area today commands Rs 15,200 per sq ft. Properties in places like RM Bhattad Road, one of the best roads in Borivali West, fetch around Rs 18,500 per sq ft.
The Bill will be a boon for homebuyers
Jun 19, 2013
MUMBAI: The Real Estate Regulator Bill which was recently approved by the union cabinet, has been several years in the making now and hasn’t had smooth sailing from the start. Apart from inordinate delays, it faced much resistance from the real estate fraternity at initially who were afraid that this Bill would prove to be yet another regulatory bottleneck, rather than a regulation that would empower the industry and its homebuyers.
Nanded City township project plans urban organic agriculture
Jun 19, 2013
PUNE: Nanded City, a 700-acre integrated township being developed on the outskirts of Pune along the lines of Magarpatta City, plans to propagate the concept of urban organic agriculture.

Latest Realty News Of State

Realty Talk's