In a heartening development for the industry, the Mumbai real estate sector has been witnessing a flurry of activity in recent years.
The Mumbai real estate market is seeing a lot of activity in recent times. The stamp duty cuts and other incentives led to record sales figures and property registrations throughout the MMR (Mumbai Metropolitan Region) over the last few months along with several big-ticket luxury property deals as well. Now, there is a bustle in the market which signals that all is finally well with the market.
IL&FS Asset Sales
A big commercial real estate deal could be in the offing. IL&FS, the beleaguered NBFC is putting several commercial properties up for sale after selling its headquarters in the business district in Mumbai. This will be of interest to commercial real estate buyers/investors in the city and beyond. The two properties up for sale include IL&FS House and Business Arcade at Chandivali and Lower Parel respectively. The sale should yield more than Rs. 700 crore for the company as per estimates. The Business Arcade property covers 1/5th of 1 acre in the CBD at Lower Parel with 28,591 sq ft in built-up area. The tower was built on the site of a former Elphinstone Mill property. It has 14 floors with two basements and one stilt parking.
IL&FS House at Chandivali is owned by IL&FS Securities Services. It covers 0.4 acres with built-up space of 28,734 sq ft in all. This property comes with a ground floor, basement and six floors above. IL&FS is also selling two commercial properties covering close to 17,000 sq ft at Mafatlal Chambers on Delisle Road and a commercial unit at Lower Parel’s Trade World, in tandem with 18 office spaces at Dadar’s Kohinoor Square and 23 shops at Residency Park in Virar. These multiple deals could keep Mumbai commercial real estate ticking for quite some time to come.
Prestige Group’s Mega-Mumbai Bet
Prestige Group, one of the country’s biggest real estate conglomerates, has forayed into the Mumbai housing market for the first time. It is betting big on mega projects in Maximum City, pumping in Rs. 7,500 crore for 16 million sq ft. It will make this investment over 4-5 years across six projects. They will include hospitality, residential, and office space ventures in prime areas such as Bandra, Worli, Marine Lines and Mahalaxmi, Mulund, and the BKC (Bandra-Kurla Complex). The Group CMD Irfan Razack has already talked of how Maharashtra contributes the highest collections of GST in the country while adding 15% of GST to the total economy as well. He talked of how Mumbai was the biggest commercial hub of the country.
Prestige Group has already put in Rs. 3,000 crore for these projects. Two projects will cover 6.5 million sq ft across Mahalaxmi and BKC, which will also have a 5-star W Hotel. The Mahalaxmi project covers 2 acres and will have 233 super-sized and luxurious apartments. The Mulund project will come with premium residential, retail and commercial offerings across 30 acres along with a hospital and school. The company has already bought 30 acres in Mulund and 2 acres in Mahalaxmi for its projects. It has already put in more than Rs. 800 crore for the same. It has also inked joint ventures with ABIL and DB Realty. The Bandra Pali Hill project will involve a redevelopment project for a society.
Vellard View Premises Co-Operative Society Redevelopment
Turnkey Whitepaper Constructions or TWCo has received the mandate for redevelopment of the Vellard View Premises Co-Op Society at Mumbai’s Haji Ali. The society lies between the Mahalaxmi Race Course, Arabian Sea and the Willingdon Golf Club. The Haji Ali project was stuck for more than ten years and will now get fresh momentum going forward. There is also a southern developer who has come on board as an equity investor for the project. TWCo will be developing the project with a top-line anticipated at around Rs. 700 crore. The agreement has been 100% finalized with the society and all members. The site is ready for construction and anchoring, piling and excavation has already been done.
Dynamix Group Plans New Mumbai Real Estate Projects
Noted real estate developer Dynamix Group has confirmed three new project launches for the Mumbai residential market which is expected to draw capital of Rs. 1,050 crore. There is 3.2 million sq ft being developed already in six projects in the city. These projects have investments of Rs. 1,800-2,000 crore with revenues anticipated at Rs. 3,000 crore. There are two projects in Malad along with a project each for Dahisar, Thane and Mira Road (this one is a joint venture with the Kalpataru Group).
Dynamix Group already has a bank of 30 plots and they will be developed as per the SRA (Slum Rehabilitation Authority) model. The company will launch its new projects in Malad, Goregaon and Kandivali. A residential project has been launched by the Group at Dahisar by investing Rs. 105 crore. The Goregaon property will cater to demand for office spaces in the belt. An upcoming project in Andheri offers 2 and 3 BHK units while the Malad residential project will have 1 and 2 BHK homes on offer for buyers. Other projects include ventures at Yashodham and Gokuldham in Goregaon East.
Mumbai’s real estate market certainly seems to be buzzing again as per recent industry trends and other developments.