A failure by the lenders’ group to attract even a single buyer for liquor baron Vijay Mallya’s Kingfisher House in Mumbai on Wednesday may not mirror the true trends in the financial capital’s realty market, which has seen a raft of big-ticket deals in recent months.
Data collated by HT from industry sources show that in 2015 there were at least three residential home deals worth more than Rs 100 crore each in Mumbai, suggesting that high-value properties continue to draw buyers, despite a general deceleration.
Top industrialists and Bollywood actors bought properties across the city located in areas such as Worli, Malabar Hill, Altamount Road, Breach Candy and Bandra Kurla Complex (BKC) in Mumbai in 2015, some priced at Rs 750 crore and above.
For instance, Cyrus Poonawalla of the Poonwalla family, which owns biotech major Serum Institute of India, bought the 50,000 square feet Lincoln House in Breach Canndy for an estimated Rs 750 crore.
Top banker Uday Kotak and Bollywood star Sonam Kapoor both bought properties in BKC worth about Rs 35 crore.
Bollywood actor Akshay Kumar bought a property worth Rs 56 crore in Worli, while industrialist Sajjan Jindal has bought a property worth Rs 150 crore at Altamount Road.
The national capital mirrored similar trends in the premium realty market. There were at least three big deals concluded for properties located in leafy Lutyens Delhi 2015.
These three properties at Prithiviraj Road, Bhagwan Dass Road and Golf Links, changed hands in deals worth Rs 173 crore, Rs 304 crore and Rs 165 crore respectively, suggesting a buzzing premium realty market in the national capital.
Analysts and experts say that the slowdown, being a buyers’ market, always attracts some good deals.
Anshuman Magazine, managing director of the world’s leading commercial property services adviser CBRE, South Asia, said the fact that real estate has been in slowdown for quite some time does not impact such large transactions.
“The only aspect, which plays a major role is the right deal at the right location and the right price for the investor to make an entry,” Magazine said.
Real estate is typically at a sharp premium in land-starved cities such as Delhi and Mumbai
“Recession has proved to be the most favourable time for such deals. The reason being valuations are lower during a slowdown, which excites buyers. It also gives an opportunity for the private equity players to enter in properties, which otherwise would not be the case,” said Sanjay Dutt, executive managing director, Cushman & Wakefield, real estate consulting firm.
The Kingfisher House bidding may unfold yet, as the watchers on the sidelines turn active.