- News
- House Full
This story is from February 5, 2006
House Full
Commercial and residential development on defunct mill lands has come to a standstill for the past six months as the matter is pending in the Supreme Court.
A buoyant economy, booming stockmarket and vast spaces locked up in PILs have combined to send prices in the city through the roof.
Commercial and residential development on defunct mill lands has come to a standstill for the past six months as the matter is pending in the Supreme Court.
In the suburbs, the HC has banned use of transfer of development rights on corridors along the eastern and western express highways.
In the island city, it has capped liberal use of floor space index which allowed builders to construct high skyscrapers. All this has left developers chasing the last few open plots. But that has not yet deterred buyers.
Last month, in an upmarket residential building in Cuffe Parade, a sprawling apartment was sold at Rs 40,000/sq ft. Small galas (about 100 to 200 sq ft in size) in shopping centres and malls in the western suburbs are being sold for as much as Rs 50,000/sq ft.
In January, Mukesh Ambani's Reliance Group shelled out a record-breaking Rs 1,104 crore for an 18-acre plot in the Bandra-Kurla Complex.
And companies and corporates wanting to take office space on lease are having to shell out Rs 175-250/sq ft as lease rentals. It used to be barely Rs 100-135/sq ft a year ago. Prices are expected to escalate for another year at least.
The demand will keep rising as businesses expand and new sectors emerge. Retail business alone has huge demand. According to a Cushman & Wakefield report, there are 14 operational malls in Mumbai and 27 more in various stages of completion.
Their size varies from three to five lakh square feet. The only respite on prices could come from a verdict on mill land. "A positive judgement in favour of mill land owners would mean some stability in supply and demand.
It would also bring about some much-needed correction in price trends," says Nainesh Shah, executive director of Everest Group. Satellite town Navi Mumbai is also emerging as a new destination for the land-hungry IT/ITES sector.
This could also boost residential prices, since people like to live close to their workplace. "The residential market in Navi Mumbai has not yet appreciated much.
As IT/ITES companies move there, it will see price escalations," says Dutt. Thane and Lower Parel are the other residential locations where he expects prices to rise. Property prices had risen in 1995-1996 too.
But the market could not sustain the escalation and prices crashed. Could it happen again? Experts believe that this time, the appreciation is genuine ��� unlike last time, when it was largely driven by speculation.
Knight Frank chairman Pranay Vakil is among the bullish ones. "There is genuine demand in the market. People are buying houses and staying in them. During the last boom, people booked several houses on part payment and waited for prices to go up.
Property was just a piece of paper for these buyers. Currently, demand is high and people are waiting for good locations at reasonable prices.
Even in the commercial property segment, business houses are buying for their own consumption. Hence this will be a sustained rise."
Commercial and residential development on defunct mill lands has come to a standstill for the past six months as the matter is pending in the Supreme Court.
In the suburbs, the HC has banned use of transfer of development rights on corridors along the eastern and western express highways.
In the island city, it has capped liberal use of floor space index which allowed builders to construct high skyscrapers. All this has left developers chasing the last few open plots. But that has not yet deterred buyers.
"The demand for residential property is on the rise and people are making outright purchases. Some are even buying flats as an investment option," says Sanjay Dutt, executive director, transaction services, Cushman & Wakefield.
Last month, in an upmarket residential building in Cuffe Parade, a sprawling apartment was sold at Rs 40,000/sq ft. Small galas (about 100 to 200 sq ft in size) in shopping centres and malls in the western suburbs are being sold for as much as Rs 50,000/sq ft.
In January, Mukesh Ambani's Reliance Group shelled out a record-breaking Rs 1,104 crore for an 18-acre plot in the Bandra-Kurla Complex.
And companies and corporates wanting to take office space on lease are having to shell out Rs 175-250/sq ft as lease rentals. It used to be barely Rs 100-135/sq ft a year ago. Prices are expected to escalate for another year at least.
The demand will keep rising as businesses expand and new sectors emerge. Retail business alone has huge demand. According to a Cushman & Wakefield report, there are 14 operational malls in Mumbai and 27 more in various stages of completion.
Their size varies from three to five lakh square feet. The only respite on prices could come from a verdict on mill land. "A positive judgement in favour of mill land owners would mean some stability in supply and demand.
It would also bring about some much-needed correction in price trends," says Nainesh Shah, executive director of Everest Group. Satellite town Navi Mumbai is also emerging as a new destination for the land-hungry IT/ITES sector.
This could also boost residential prices, since people like to live close to their workplace. "The residential market in Navi Mumbai has not yet appreciated much.
As IT/ITES companies move there, it will see price escalations," says Dutt. Thane and Lower Parel are the other residential locations where he expects prices to rise. Property prices had risen in 1995-1996 too.
But the market could not sustain the escalation and prices crashed. Could it happen again? Experts believe that this time, the appreciation is genuine ��� unlike last time, when it was largely driven by speculation.
Knight Frank chairman Pranay Vakil is among the bullish ones. "There is genuine demand in the market. People are buying houses and staying in them. During the last boom, people booked several houses on part payment and waited for prices to go up.
Property was just a piece of paper for these buyers. Currently, demand is high and people are waiting for good locations at reasonable prices.
Even in the commercial property segment, business houses are buying for their own consumption. Hence this will be a sustained rise."
End of Article
FOLLOW US ON SOCIAL MEDIA
Hot Picks
TOP TRENDING
Trending Stories
In Section
Entire Website
- UPS vs NPS Calculator: Is A Switch From National Pension Scheme to Unified Pension Scheme Really A No-Brainer? Check Calculations, Benefits - Top Points
- Top 10 sports stars turned power couples: From Agassi-Graf to Conner-Comaneci
- UPI transaction limit to change from September 16! Here are the new limits for various UPI payments
- Protests by Hindu groups in Shimla continue despite mosque demolition
- Schools to be closed tomorrow in these states: Here’s why
- 9 Inspirational Quotes Every Student Should Embrace for Academic Success​
- 'We can be political rivals but ... ': BJP's reaction on minister's Rahul 'No. 1 terrorist' remark
- Donald Trump Jr dumps fiancee Kimberly Guilfoyle for Bettina Anderson?
- Trump vs Kamala polls latest: Harris gains from post-debate bounce
- NEET PG counselling schedule 2024 delayed: Why candidates moved to Supreme Court, hearing dates and other latest updates
- I am happy but also sad that my elder brother Kejriwal is resigning: Delhi CM-elect Atishi
- No adverse action will be taken against protesting doctors: SC
- Will this 19-yr-old flying solo around the world get his $1mn?
- 'May God protect Delhi': Swati Maliwal calls Atishi 'dummy CM'
- Fadnavis responsible if Maratha quota demand not fulfilled: Manoj Jarange
- Failed Surya imitation: Pakistan cricketer's blunder
- Can Vijay, a box-office BEAST, become a political GOAT?
- ICICI Bank warns customers; says these are signs of 'fraud attempt'
- Rohit Sharma: 'Har team ko India ko harane mei maza aata hai'
- PM Modi launches Odisha’s flagship Subhadra Scheme, projects over Rs 3800 cr
Popular Categories
Hot on the Web
Top Trends
Dominique PelicotUS Fed Rate CutIndia vs China Champions TrophyUPI Transaction LimitWhere to Watch India vs China Final Hockey MatchUPS vs NPS CalculatorSports Stars Turned Power CouplesNEET UG Admission CriteriaAtishiKolkata Doctor Rape CaseArvind Kejriwal Resignation LiveAli Khamenei TweetSuryakumar YadavVince McMahonTech LayoffsDonald TrumpLive Cricket Score
Trending Topics
Chandra Grahan 2024 FoodLuxury BrandCancer CauseKhatron Ke Khiladi 14Chinas EggLuxury BrandSunita AhujaGoat CollectionSalman Khan FarmhousePitra Paksha 2024Lunar Eclipse 2024Kangana RanautAditi Rao HydariDalljiet KaurHoliday DestinationVikas SethiReliance Jio DownApple iPhone 16 ProVirat KohliWordle Answer
Living and entertainment
Latest News
Pankaj Kapur is proud of son Shahid Kapoor’s film choices, calls him ‘the finest actor in the country’Mukhtar Ansari died of heart attack, not poisoning: UP's Banda district magistrate's report4 types of tea to improve gut health and ease digestive issuesMemeFi daily codes for 17 September 2024: Boost your earnings with daily codes and know how to maximizeKhatron Ke Khiladi 14: Shalin Bhanot hosts a fun party for his co-contestants Krishna Shroff, Abhishek Kumar, KaranVeer Mehra and othersDecoding how log analytics systems are enabling brands to derive maximum value from dataSebi U-turn: Pulls note blaming 'external elements' for staff stirTaurus, Daily Horoscope Today, September 17, 2024: Anxiety and stress diminishLiza Colon becomes 1st Latina to win Best Supporting Emmy AwardFormer WWE superstar is no longer listed on their internal rostersBeyond Paychecks: Job satisfaction, work-life balance more important than salary for Gen Z workforceThrowback: When Sunita Ahuja showered love on husband Govinda, 'A superb son, brother, and a very good father...'Why more couples aged 50 or older are getting divorcedThese are the most toxic fresh produce of 2024Things to do before, during and after Lunar EclipseCongress condemns Shiv Sena MLA's 'Rs 11 lakh reward to cut Rahul Gandhi's tongue' remarkThe 3 Strongest Zodiac Signs: Powerhouses of the Zodiac WheelPics; Monalisa visits Lalbaugcha Raja with husband Vikrant Singh
Copyright © 2024 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service