BKC plots sold at lower value

By Sanjay Chaturvedi
Recent play of BKC plot auction by MMRDA was surprise to the real estate pundits. Plots were sold at historic value in the prime CBD area of Mumbai, quoted as saying by all most all the daily papers. But look at the rates they are sold for (see Table ). They are lower then the rates for land or FSI sold for recently in the city. The CBD area deserve higher rates any way. These plots were not sold at Malad or Bhandup but in prime CBD area where corporate world makes beautiful skyline in the heart of the city. If super built-up applied, which is in practice of 35 to 50 % on commercial premises and 33 to 45 % in residential accommodation then the rates will be lesser then such percentage as quoted in the table under the column Rates per sq.ft.
Enam got inam after bidding successfully for commercial plot at the Bandra Kurla Complex (BKC) for Rs.10613.8 per sq.ft. which is before applying standard practice of the industry’s Super Built-Up area. Where as plots or FSI in Bandra west is ranging between Rs.12000/- to Rs.21,000 per sq.ft for any commercial plot. Malls, which are selling for Rs.31,000/- per sq.ft. is much more then the plot sale in BKC. Lower Parel, Malad and Andheri are selling for Rs.5000/- to Rs.15000/- per sq.ft. for commercial FSI. In Navi Mumbai , CIDCO sold properties much higher then the current bid.
Should the BKC, which the main CBD area of financial capital, not have rates above board. As a matter of fact, these plots were not sold in Malad or Andheri but in Mumbai main prime CBD area.
Ask any builder in Mumbai the rates prevailing in the western suburbs, specially in Bandra for residential FSI. They will certainly say that it is miracle to get plot at Rs.6688.83 per sq.ft. and that too with the scope to add super built-up area of 50 % which is prevailing in Bandra- Khar- Santacruz.
And for hotel plot, land sold to Sheraton Hotel at Lower Parel is much more then the plot sold to Naman. With such monopoly amongst corporate neighbors in the area, plot at BKC must have been sold at least 300 % more then that sold for.
Bandra-Kurla Complex (BKC) is being developed as commercial and finance district in Mumbai. As part of this programme, the Mumbai Metropolitan Region Development Authority (MMRDA) has undertaken the development of International Finance and Business Centre (IFBC) over a spacious area of 120 ha. in G-Block of BKC. G-Block of BKC has now emerged as the financial hub of Mumbai due to the availability of modern infrastructure, locational advantage and the strategic planning and well on its way to become a truly international finance and business hub. . A number of front line financial institutions, banks, private insurance companies and leading business houses have established their corporate headquarters in the IFBC. ICICI, IL&FS, UTI, NABARD, National Stock Exchange (NSE), CITI Bank, Bank of India, Bank of Baroda, Wockhard to name a few. Other banks such as IDBI, State Bank of India, Punjab National Bank, Dena Bank, SIDBI and Canara Bank are in the process of establishing their offices in IFBC. Security and Exchange Board of India (SEBI) has also acquired a plot for its headquarters in IFBC. The Bharat Diamond Bourse, a diamond trade hub with around 3000 exclusive diamond units is all set to be operational by mid 2006. A proposal to set up an International Convention and Exhibition Centre on a plot admeasuring 7.5 ha. is under active consideration by MMRDA.
With such huge advantage can anyone compare Nariman Point rates which has become dead stock. Collectors’ property tax of Rs.2.5 per sq.ft. and his fee to transfer the property has made the area one of the least preferred. Also employees so not want to travel 3 hours daily by using over crowded buses and impossible to get space in trains, not also to hang on the doors of the compartments. Manpower is scare and expensive. BKC has edge over Nariman Point and will remain the preferred destination.
No other area in Mumbai is offering such advantages and infrastructure which is out of BMC preview.
Commercial Plots ( Reserve Price Rs.70,000/- per sq. mtr. )
Bidder   
Plot Area BU (Mtr) 
Permissible FSI (MTR)
in sq.ft.
Sold for Cr. Rs.
Rates Per sq.ft.  
TCG (c53)   
3940.91   
8500   
91494  
 130   
14208.58
Jet (c 68)   
10309.59   
25000   
269100   
339   
12597.55
Green (c 38)   
4500.00   
10000   
107640   
135   
12541.80
Green (c 39)   
4500.00   
10000   
107640   
135   
12541.80
Enam (c 20)   
3687.04   
7700   
82882.8 
87.97
10613.8
Residential Plots ( Reserve Price Rs. 52,550/- per sq. mtr.) 
Bidder
Plot Area (Mtr)
Permissible BU FSI (MTR)
in sq.ft.
Sold for Cr. Rs.
Rates Per sq.ft.
Starlight (R1-2)   
3533.40   
7050.00
75886.2
72.40
9540.6
Starlight (R1-3)   
3533.27   
7050.00
75886.2
64.50
8499.56
Naman( R-5A)   
1887.86   
2832.00
30483.65
20.39
 6688.83
Hotel Plot ( Reserve Price Rs.70,000/- per sq. Mtr.)
Bidder   
Plot Area (Mtr) FSI (MTR)
Permissible BU   
in sq.ft.
Sold for Cr.Rs.  
Rates Per sq.ft.
S. Naman (C57-58)
8092.4   
 18600   
 200210.4   
204.6
10219.25
Posted on 9th January 2006





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