They say you’ve arrived once you own a home in Mumbai – the city of dreams is one of the world’s most expensive for real estate. There isn’t much room to grow, unless you’re growing vertically. And even then, some plots are more prized than others.
So it’s no surprise that when property analyst firm Anarock, released their list of the country’s most expensive neighbourhoods from 2013 to the first half of 2019, Mumbai featured prominently. The surprise was that Tardeo was considered the most expensive place to buy a new home, with an average price tag of Rs 56,200 per sq ft
Tardeo isn’t a better address than Worli, Prabhadevi or Lower Parel, it’s just that luxury homes are harder to find in that locality. Most new construction is on small plots occasionally made available by redevelopment. In seven years, only 1,100 premium units (with an average size of 1,690 sq ft) have been released for sale.
“The other factor that often drives up prices is the saturation of luxury amenities in a project,” says Anuj Puri, chairman, Anarock. “However, when it comes to the resale luxury market, areas like Nepean Sea Road, Altamount Road and Cuffe Parade are a lot costlier than Tardeo.”
Pankaj Kapoor, managing director of the real-estate analytics firm Liases Foras, says that a neighbourhood plays a big role in determining the value of a home. “The expensive quotient comes from neighbourhood,” he says. “Demographic and geographical factors help make a locality expensive. But the product has to be high-end too.”
Across the rest of the city, new expensive enclaves include Worli and Mahalaxmi, where 2- and 3-bedroom apartments dominate. At these hyper-expensive luxury residential locations, property commands Rs 41,500 and Rs 40,000 per sq ft respectively.
These luxury properties offer an unrestricted view of the race course and sea views, premium amenities like self-sufficient high-grade educational and healthcare institutions as well as hotels and fine dining restaurants and privacy.
In Tardeo, businessman and resident Sunil Sanghvi has seven flats in Sahakar Niwas. “We are a joint family and it made sense to get flats in the same building,” he says. They built on the home Sanghvi’s father bought in the building 35 years ago. “Five years back, we bought a 1BHK for 48,000 per sq ft in the same building. One thing that I really like about Tardeo is the liveliness. There are huge shopping centres, markets and supermarkets, I see people everywhere at any point of time.”
Among the southern states, neighbourhoods in Chennai, Hyderabad and Bangalore made it to the list. Nungambakkam, Egmore and Anna Nagar rank 4th, 5th and 7th respectively. But buyers in Chennai get possibly a better deal. The average built-up size of the premium units in Chennai is about 17% larger than those in MMR. In Chennai, luxury apartment sizes are in the range of 2,190-2,890 sq ft. These are prime areas where demand is high and supply is scarce.
“Even the most expensive areas in Bangalore and Hyderabad come across as relatively affordable when compared to Mumbai,” says Puri. “Also, these cities still have sufficient land for development, so land scarcity has not yet kicked in. When it does, areas in these two cities are likely to join the ranks of India’s most expensive residential locations.”
In the NCR, Delhi’s Karol Bagh comes in 6th and Golf Course Road ranks 9th, with an average price of Rs 12,500 to Rs 13,500 per sq ft Some of these projects come with roof-top cafés with spectacular views, observatory decks, restaurants, spas and various other luxury accoutrements.
Pune’s Koregaon Park ranks 8th on the list, while Alipore in Kolkata ranks 10th. Average prices for luxury homes in these two micro-markets are INR 12,500 per sq ft and INR 11,800 per sq ft respectively.
Oct 11, 2019 15:40 IST