Tag Archives: Nariman Point

Nariman Point highrises trust in no ascent in prepared reckoner

Landowners in Nariman Point are trusting that the new prepared reckoner (RR) rates won’t be further expanded in the focal business locale.

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The state government is to declare the new RR rates on April 1 for private, business and modern properties. Consistently, the new rates are executed from January 1, yet this time developers had asked the administration to put off it as the land business sector was stagnant. Property market sources said they anticipated that the rates would go up by no less than 10%, in spite of the fact that in a few territories there might be no ascent.

Specialists said the business sector in Nariman Point is terribly misshaped and has hit out and out offer of office premises. “Individuals like to rent out properties,” a proprietor said. Today’s RR rate for Nariman Point is over Rs 48,000 for each sq ft when the business sector rate for office premises is in the scope of Rs 26,000 to Rs 32,000 for each sq ft.

Onlookers said the “unreasonable” valuing had severely influenced the workplace exchanges business sector and spelt inconvenience for purchasers and venders as they could be blamed for underestimating property.

Numerous organizations have moved to BKC, which has risen as the head focal business locale. Nariman Point building inhabitants said the rates were unreasonable and any further RR rise would slaughter the business sector there. “No deal exchange will happen,” one of them said.

Mumbai set to have India’s tallest commercial building

India’s tallest commercial building is set to come up in Mumbai, with the Nitin Gadkari-led Ministry of Shipping proposing to construct a towering ‘business district’ on Mumbai Port Trust land to monetise the asset and ease the space crunch in the country’s financial capital. “It will be a 130-storey building and will house mostly offices along with other amenities. We are working on the plan and it’s still in initial stages,” Gadkari told ET.

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The project, which may cost more than Rs 10,000 crore, is likely to be developed without costing the government a single penny, financed with funds raised from pre-booking of space from public sector units and private companies. The proposed building would be in the vicinity of Nariman Point, once considered Mumbai’s leading business district, and the Fort area in south Mumbai.

Other business districts in the city include the Bandra Kurla Complex, which was set up in the suburbs to decongest the commercial areas of south Mumbai. Apart from the number of floors, little else is known about the building. The contours of the project, including the location of the building in the port trust premises, are yet to be finalised. The ministry is engaging an international consultant to prepare the blueprint for the project. “A separate master plan for the port land would be prepared and this building would be a part of it. We are yet to finalise the land parcel and the area for this building,” a senior government official said.

The government is likely to undertake the project on its own land won’t be given to private builders for redevelopment. “If the logistics issues of evacuation of people without stressing the cargo-laden port roads are addressed, the proposed 130-storey building will have a demonstrative effect on a mechanism for monetising land assets owned by ports,” said Jaijit Bhattacharya, Partner-Infrastructure at KPMG.

Billionaire investor Rakesh Jhunjhunwala buys six Mumbai flats for Rs 176 crore

Jhunjhunwala told the media that he did not want to confirm nor deny the development. A spokesman for Standard Chartered declined to comment. A spokesman for property consultant Jones Lang LaSalle, which was the transaction advisor, also declined to comment.

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Billionaire investor Rakesh Jhunjhunwala on Monday bought half of a seafacing building, comprising six plush apartments, in Mumbai’s upmarket Malabar Hill area owned by Standard Chartered Bank, for Rs 176 crore, more than two persons who knew details of the open bidding, told media asking not to be named.

This is the fourth high-value transaction to take place in south Mumbai over the last few months.

In May this year, YES BankBSE 1.42 % CEO and managing director Rana Kapoor had bought a residential building on Altamount Road from Citibank and GlaxoSmithKline for Rs 128 crore.

In June, glassware manufacturer Borosil bought a seafacing duplex for Rs 43 crore.

In September, a duplex in Darshan Apartments on Mount Pleasant Road was sold to the Bulchandani family for Rs 57 crore

The who’s who of the business world stays on Malabar Hill. The Ruias of Essar group, Shapoorji Pallonji Mistry, Adi Godrej, Pranav Mody and Venugopal Dhoot— all have homes here. The combined net worth of residents of Malabar Hill is around $30 billion.

Former residence of Mohammad Ali Jinnah and residents the Maharashtra governor and chief minister are also located in this area. Standard Chartered and a number of other companies such as Citibank, Hindustan UnileverBSE 0.42 %, GSK, Bank of America and HSBC have owned many apartments in prime south Mumbai localities that were given as incentives and perks to their mid to top-level executives in the 1950s and 1960s.

With that culture long gone, these companies and banks have resorted to monetising such properties.

In the last few years, Citibank has sold over a dozen apartments in Mumbai—five apartments in Colaba’s Harbour Heights building and one each in NCPA Apartments on Nariman Point, Meher Apartments on Altamount Road and Kanti Apartments on MountMary Road in Bandra. In 2011, Standard Chartered and HSBC sold a five-storey residential apartment block, Bishopsgate at Breach Candy to real estate developer Peninsula Land for Rs 272 crore.

HULBSE 0.42 % recently sold its apartment block in Worli, called Gulita, to Piramal Realty for Rs 452 crore and has now looking at selling 55 apartments in prime south Mumbai’s neighbourhoods of Nepean Sea Road, Altamount Road, Cuffe Parade, Malabar Hill and Colaba for over Rs 300 crore.

Media has earlier reported that while property appreciation in Sobo, as the area is fondly called, has dropped to 10 per cent from 30 per cent two years ago, rental yields have fallen by more than half.

“Inventory has increased in the last two years, but sales are not happening at the same pace,” said Ashok Narang, partner at real estate property firm L Lachhmandas & Co. Besides falling re-sales, rental yields too have come down from 3 per cent-5 per cent in 2008-11 to 1 per cent-2 per cent in 2011-13.

“As of now, the rental yields in south Mumbai are even below 3 per cent and it makes no sense for an investor to come in,” another broker said. With prices of properties not rising as fast as they did in the peak years, investors and speculators had gone out of the market.

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