By Mr.Sandeep Sadh – CEO – Mumbai Property Exchange.com
Looking from a perspective of a Home Buyer who is looking for a House in South Mumbai, the rates and the various composite deals with waiver of Floor Rise, PLC, Club House and topping up with a 20:80 Scheme the Lower Parel, Worli belt on the outset look very attractive in the range offered between 25000 to 30000 PSF quoted on Built up Area.
The various buildings, which are coming up, offer the Top of the line amenities, apartments starting from nearly 15 floors above, ample car parking spaces and large apartment blocks. The location enjoys presence of developers like Lodha, Runwal, Parinee, India Bulls, DB Realty, Lokhandwala.
Lately, this belt has seen a slow down in conversions and the primary reason of a slow down in this belt is that there has been suddenly a launch of at least 7 to 10 projects by Top Developers having equal amount of parity when it comes to the kind of apartments, sizes and amenities and even time frame for possession. So, keeping in mind the limited buyers in the 7 to 12 Cr segment, the sales would be distributed across projects and different developers.
Another aspect of this location is the large size of apartments which most of the developers are making, going further, this may be a little dampener as the segment where the maximum demand is between 3 to 5 Cr and not many developers are catering to the same.
The important part to understand is that towards the South of Lower Parel and Worli comes Breach Candy, Malabar Hill, Altamount Road etc. where the Re-Sale market in Good Buildings with a far less loading commands rates beginning from Rs.50000/- PSF and going up to Rs.75, 000/- PSF or more and to the North an average Bandra Flat on carpet area in the new launches is at the rate of over Rs.50000/- PSF on Carpet.
Given, the current rates, the Lower Parel and Worli market technically looks very positive. Looking at an over all picture in year 2018 onwards, it seems, when these buildings will be ready, either South Mumbai market may marginally slide down and the rates between Worli and Bandra will be at similar levels. This has happened in the lease rent market especially in high end residential segment; where in the apartment in Malabar Hill is costing Rs.4lacs a month and the same in Bandra West.
With Mumbai’s increasing traffic woes, the proximity of residential apartments to central business districts will be very important in coming days. As daily long commutes can be a deciding factor to move in to locations closer to CBD’s. For example – Andheri East and Goregaon East are fast developing residential markets and the absorption levels have been quiet high. Hence, looking at Lower Parel and Worli belt, the timing just may be right to enter into the market contrary of the market conditions and enjoy a staggered payment plan or a 20:80 Plan today.