Going by the recent spate of new real estate projects launched in the last month, luxury is clearly the flavour of the season.
Considering the high demand, coupled with the paucity of land, city based developers are now abandoning small sized flats by switching over to luxury apartments with a price tag of over Rs 1 crore.
Take the case of RNA builders' luxury housing project at Kalina, which carries a price tag of Rs 12,000 per square foot. The 390-flat project has apartments measuring approximately 1,200- 2,000 square feet area complete with modern amenities being sold in the range of Rs 1.44 crore to Rs 2.40 crore.
Similarly, the Housing Development and Infrastructure Limited (HDIL), has started bookings for its Kalina project at CST road for Rs 16,000 per square foot with each flat in the range of Rs 2.5 crore to Rs 4.5 crore.
In the eastern suburbs of Bhandup, the Lodha Group has launched a high-end project, a 42-storey Lodha Imperia, with flats costing more than Rs 1 crore.
Talking to Hindustan Times, Anand Gupta, Executive Director, E E Estate Private Limited (RNA Group) justified the high prices.
“We have to recover the exorbitant land costs,” said Gupta. "Our project is based on the local conditions," he added. The group is targeting diamond merchants and corporates working at the Bandra-Kurla complex, which is close to the project. .
Sunil Mane, Managing Director, Vignaharta Builders, who is selling his 50-flat Agripada project at Rs 12,000 per square foot says that 1 BHK flats are not feasible to construct. "Constructing smaller flat consumes more space and money rendering the whole project costlier," said Sunil Mane, Managing Director, Vignaharta Builders. He said aspirations of the people have increased making them opt for bigger flats.
Vardhaman Builders that has launched two projects at Thakurdwar and Chira Bazaar is quoting Rs 13,000 per square foot with each flat costing a minimum of Rs 1.50 crore. “There are hardly any projects in South Mumbai and hence our price," said Rajesh Vardhan, Managing Director, Vardhaman Builders.
However, real estate experts unhappy with the scene and have called the whole trend speculative. “These are exorbitantly costly and have hardly any buyers. I can understand flats costing a crore and more at South Mumbai or Bandra but these are coming across the city," said, Pankaj Kapoor, CEO, Liasas Foras, a leading real estate research firm.