The Metropolitan Region Development Authority (MMRDA) has decided to appoint consultants to sell off two of its plots, approximately 34,000 square metres in area, for residential and commercial purposes in Bandra-Kurla Complex (BKC). It has floated tenders for the same and in return, the MMRDA has plans to utilise the funds for major infrastructure projects in the city of Mumbai and Mumbai Metropolitan Region (MMR).
A senior MMRDA official said, “The land with an area of 12,5000 for commercial purpose and land with an area of 21,807 square metres will be used for residential purposes. We usually give advertisements in newspapers for announcements, but we are appointing consultants now because we are targeting multinational companies located in Doha, Kuwait and the USA.” The official further added, “We are hoping to crack deals with MNCs keeping in mind that BKC is a commercial hub and also MNCs have more purchasing power when compared to others.”
Both the plots are located in G block and G (north) at BKC and the consultants will be expected to decide on the valuation and come out with a report on it.
According to another MMRDA official, the quotation for selling both the plots measuring 34,000 square metres will be around 4-5 lakh per square metre. The rates are quoted higher because there major infrastructure projects planned by MMRDA, which includes Metro-3 between Colaba-Bandra-Seepz, which will cost us around Rs 23,136 crore. With that proposed Andheri east-Dahisar east Metro that will cost Rs 4,737 crore and likewise the DN Nagar Dahisar Metro that will cost us Rs 5,566 and we require huge of funds for it.
A report by CRISIL, a global analytical company that provides real estate ratings, stated, “In terms of the commercial real estate sector, with the growth of BKC as the recent commercial hub, South Mumbai has lost some of its shine. However, the prime districts such as Nariman Point continue to charge premium rates from Rs 30,000 per square foot and above while Lower Parel is relatively moderate from
Rs 14,000 to Rs 22,000 square metre.” The report further stated that the South Mumbai real estate market has been very premium, both in the residential and commercial segments. The residential area that has up market residential neighbourhoods, which includes Pedder Road, Napean Sea Road, Altamount Road, Breach Candy, Walkeshwar, Cuffe Parade and Malabar Hills which are among the most expensive real estate areas in the world. The comparatively low-priced areas include Dadar, Worli, Mahalaxmi and Prabhadevi. However, these areas continue to be expensive compared to the rest of the Mumbai region. Recently, new projects have started emerging in areas like Parel, Wadala, Matunga, Curry Road and Lalbaug.
