Slow demand fails to check property prices in Mumbai

Despite a sustained sluggishness in demand, property prices in Mumbai, India’s largest real estate market, do not seem to relent. Experts say a reason for this is the financing structure of real estate projects, where many developers, especially unlisted ones, resort to discounted selling to speculators during the soft launch of a project. This, experts say, helps these developers avoid the discipline of interest payments to the banks.

According to a Macquarie report, selling to speculators helps developers raise finance for construction activity against a guaranteed return to the speculator. This return then reflects in the official launch price. For example, if the assured return is 25%, the official launch price of the units would be R100 for end users against a soft launch price of R80 (for speculators who get in early). Know more about property in india.

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Bungalow in South Mumbai sold for Rs. 350 crore

A suburban developer has paid a record price of Rs 350 crore for a Nepean Sea bungalow property. Runwal Group, which has projects largely in the eastern suburbs, bought Nepean Grange , the two-storey bungalow constructed in 1918, from the Kapadia family. The transaction was finally concluded a few days ago after months of negotiations, TOI has learnt. Property sources said this could probably be the highest price paid for a bungalow in the city. The 2,048 sq m land also has an outhouse, servants' quarters and a car park. 

The half-acre property, which falls under the coastal regulation zone II, was on the block for two years and the developer had to deal with nine joint owners of the Kapadia family. The owners settled the deal for Rs 270 crore. However, the bungalow also housed a tenant, the Lilani family, who demanded Rs 80 crore from Runwals to vacate the property.

The new owners of Nepean Grange will compensate the tenant who currently occupies about 4,800 sq ft of the 28,000 sq ft bungalow. The bungalow is located close to the Kilachand House, which too is on the block.  Also you can find out more details about 2bhk apartments.

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