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Monday, 12 July 2010

South Mumbai bungalow to go for Rs500 cr

Posted on 03:58 by Unknown
The party is on. Keep playing the music as everyone is in a drunken stupor.

Just by the numbers.

Mumbai's population : 2,00,000,00 people
Next year ** projections ** of sale of luxury apartments : 7,000 flats
Ratio 7000/2,00,000,00 = 0.035%
Looks like someone has a vested interest in reporting local news affecting 0.035% of the population.

DNA India reports

Orbit, which owns 50% stake in the property — 25% purchased on its own and 25% through Om Builders — is negotiating for the balance 50% stake with the other family members (about 70-80 signatories) of the well-known philanthropic Kilachand family. Spread across 9,000 sq mt, the spacious bungalow is expected to cost Orbit roughly Rs500 crore.

The Mumbai developer, known for its upscale residential projects, is in the final lap of raising Rs350 crore from a private equity fund for the project. Acknowledging the move, Pujit Aggarwal, managing director of Orbit Corporation, said the bungalow is strategically located on Napeansea Road where flat prices are over Rs40,000-Rs50,000 a sq ft.

According to Aggarwal, his company is also in talks to purchase three other plots on Napean Sea Road for its first block redevelopment project in the tony neighbourhood. The three sea-facing plots will be consolidated for a luxury housing project, generating 300,000 sq ft of saleable area.

Acquiring dilapidated properties and redeveloping them is the only way to build new projects in areas such as south and central Mumbai, due to a paucity of open land there.

According to Knight Frank, a global property advisory, while there is a potential problem of supply overhang of luxury projects in central Mumbai areas such as Lower Parel, there is huge demand for such high-end residential developments in south Mumbai because supply is restricted. Incidentally, consultants have estimated that around 7,000 luxury apartments will be sold within a year in Mumbai, with each unit priced at more than Rs4.7 crore.
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