Mumbai Property Bought For 175 Crore By BL Jatia Group

Real estate in Mumbai is abuzz with the news of sale old Razak Haven, a three-storey dilapidated building located at Nepean Sea Road in the posh south Mumbai area. It is believed that the building has been sold for approximately Rs 175 crore. The dilapidated real estate in Mumbai property has been bought by the well known Amit Jatia belonging to the Jatia family of the renowned B L Jatia Group. Amit Jatia, 47, manages 174 McDonald food chain spanning across 17 cities in the country. He has a net worth of Rs.5, 739 crore .

The Jatias are well-known fast food tycoons in India. The are the master franchise of McDonalds. In 1995 Mr. Amit Jatia had started a 50:50 partnership McDonalds and since then he has owned the McDonalds franchise in west and south India.

The residential property in Mumbai bought by the Jatia family, is said to be almost a hundred years old. The structure is positioned in the tiny Darabsha lane at the Nepean Sea Road. According to the insiders the real estate Mumbai deal was finalized last week. It is being estimated that the family has bought the real estate Mumbai property so that they can reside in it after the redevelopment work is completed.

Currently the Jatia family lives at Breach Candy, and it is being said that the family has been look to buy a larger Mumbai property. The century-old structure Razak Haven has housed numerous owners and a few tenants. This is not the first time that a family has bought an expensive Mumbai property not as as an investment, but for the purpose of residing in it. Earlier too several promient industrialist had bought bungalows so that se could redevelop it into a comfortable abode.  Mr. M P Aggarwal who is the chairman of Sajjan India had bought Glamis Villa last year. The bungalow at Breach Candy was bought for Rs 180 crore so that Aggrawal could refurbish it in a comfortable home.

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Price Variation of Property in Mumbai Across Andheri Dahisar and Navi Mumbai

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It was only after living in Mumbai that I realized how pricey it is, specially in terms of its real estate. The rates are exceptionally high along Andheri Dahisar Road and across southern region. To buy house in the city is a dream that remains unfulfilled for many. For buyers with only limited financial means have no choice, but to look for alternative options. Suburbs like Thane and Navi Mumbai are relatively affordable and are preferred by budget-minded buyers. Let's have a look how residential property in Mumbai fares in Andheri-Dahisar stretch and compare it to prices prevalent over Navi Mumbai localities. We shall take a 2 BHK for our consideration.

A two bedroom property in Mumbai in one of the prime localities, Goregaon, varies between 20 lakhs and 1.5 crore. The starting price for the same in Malad(W) stands at around 30 lakh. The price value is comparatively higher in Malad(E): a 2 BHK flat for sale here is available in 60 lakh-1 crore bracket. Localities like Andheri(W) and Borivali(E) carry much higher rates. To purchase a two- room house here, a buyer needs to pay at least 65-75 lakh. 4 Bunglows, Oshiwara, Marol too carry considerably high price tags. Buyers would find it difficult to find a 2 BHK below 1 crore across these locations.

Now, consider Navi Mumbai. The seekers of two-room Mumbai property have several affordable options. New Panvel, Karanjade, Airoli, Panvel, and Taloja are a few such examples. Across these, one can expect 2 BHKs below 20 lakh. In 20-30 lakh bracket, one can consider suburbs like Vashi, Kharghar, and  Kamothe. For higher price segment, the buyers can look for Mumbai properties in colonies with well-developed infrastructure and good connectivity. A few such areas are Nerul, Koparkhairane, Sanpada, and Belapur.

With prices across Andheri-Dahisar stretch are beyond the reach of majority of Mumbai population, a number of buyers have took to Navi Mumbai as an alternative market.

Properties in Mumbai: Will they see Price Fall, Will They Not?

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With the proposal of the eminent builder, Lodha Group to built an affordable residential property in the land across Navi Mumbai and Dombivalli, it seems that Mumbai real estate seems to have risen from its ashes like a Phoenix. But any conclusion cannot be drawn on the basis of a single example or so. The real scenario is far from being normal. New Year came like a jolt, when the government raise the rate of ready-reckoner in the city. With the increase in stamp and registration duties, the buyers are now under they extra-financial burden.

The number of unsold residential property in Mumbai, as of record, stands at a whopping 130,000. With such a phenomenal number of vacant inventories, developers are not too hopeful this year too. Though Indian Banks have played a major role in not letting the pricers go down, it has not helped much to Mumbai builders. With increase in interest rates, the affordability factor has remained a dream for so many buyers in the city. The loans given by them for commercial sector has grown at a much faster rate as compared to their lending rate. The property rates in Mumbai have been escalating from past few years, and since 2009, there has been a 12% raise in prices.

There has been a considerable drop in the interest from the investors to roll out their money over Mumbai properties. They see little probability that their investments shall reap any worthwhile returns in the near future. As the buyers are not willing to spend money over purchasing, investors are finding it very hard to expect good gains. There are some people and research firms that are positive that the trends shall discontinue in 2014. According to them, the rates are about to fall by 50%, and if that happens in reality, the entire Mumbai real estate shall see a sea change. People in favor of this agreement say that the property bubble in the city is about to burst anytime.