MUMBAI: Fifty-year-old Sujata Singh grew up in a tree-canopied bylane of Cumballa Hill and later moved to London. She recently decided to invest in a flat in Mumbai, hoping to spend more time in her country of origin. Budget was not an issue. Rather, the big question was: Should she get an old-world low-rise that would evoke the charm of her childhood? Or one of the brash new buildings that pierced the sky.
“I clearly want to be a part of New India, not old Mumbai,” says Singh (name changed on request), who bought a flat in a brand-new building in central Mumbai. “Traffic is going to get worse so it’s better to have all your facilities like a gym and pool in your building. The amenities here are like a five-star hotel.” Her other big reason? “My kids have grown up abroad and don’t know too many people in Mumbai, so here they would get access to a readymade community.”
While the old A-lister buildings in Malabar Hill and Cumballa Hill are still coveted, wealthy families are gravitating to the new condos with coffee shops and paddle courts. A new highrise in an old neighbourhood seems to be the headiest combination in Mumbai’s ever-changing Monopoly board game, suggest recent sale values. For example, a flat in a building like Kamal Mahal on Carmichael Road recently went for Rs 1.1 lakh/sq ft, while a little further down the road, a flat in the brand-new condo Morena House recently sold for Rs 85 crore, working out to about Rs 1.5 lakh per sq ft.
Even as the demand for flats in old tony neighbourhoods of the city has not dwindled, according to according to real estate consultant Malcolm Dadrewala, the trend appears to emerge wherein a flat in a new highrise attracts higher value. Like the new Carmichael Residency highrise — with a rooftop pool and a fancy gym — is commanding a price upward of Rs 1.35 lakh per sq ft.
The same discrepancy holds for buildings on the other hill. Apartments in the still under-construction Lodha Malabar at Walkeshwar Road are selling for Rs 1.41 lakh per sq ft – more than double of what an apartment went for in a premium building like Il Palazzo, located near Hanging Gardens.
“Older buildings like Kamal Mahal, Hill Park, and Sunita, have a dedicated set of customers always willing to buy at a high price, because of various factors like gentry, ambience, old wealth, privacy, address and association,” says Reshmi Panicker, executive director, land services and residential, Knight Frank India. “The demand for such residential units far exceeds the supply and availability. New buildings are attractive for the modern amenities, specifications, offerings, parking, etc. and theability for growing families to be accommodated under one roof. Both have a dedicated set of buyers, and it is interesting to see how some of the younger generation is slowly veering towards the new luxury towers, which offer more amenities and lifestyle.” She says that both old and new buildings are transacting at between Rs 90,000 and 1.4 lakh per square foot, while some of the new projects quote as high as Rs 1.75 to 2 lakh per sq ft.
“Homes in these south Mumbai areas have been commanding very high prices for a very long time,” says Sandeep Ahuja, CEO, Atmosphere Living, explaining that they come with a unique demographic of “distinguished gentry” and “low density”. The only missing link hasbeen the incremental luxury amenities. “Luxury towers definitely command a premium as most residents are seeking that upgrade but do not want to reside in any other location.”
The astronomical prices seem more and more unreal to the average Mumbai resident who deals with long commutes and collapsing infrastructure. Singh suggests that Mumbai has always been a city of polarities and inequity — but also one of opportunity. “When I was growing up, there was a predictable set of people who could afford certain zip codes. We knew all their surnames. Today, I don’t know most of the people who are in my new condo. They seem to have come from all over India. That makes it quite interesting.”
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