The commercial realty market may be looking down, but it has not affected the Maharashtra Housing and Area Development Authority (Mhada), which got high rates at the auction of its shops on Thursday.
Shops were auctioned in different localities across the city such as Chandivli, Goregaon, Malvani and Sion.
The highest bid was Rs 75 lakh for a 286 sq ft shop in Chandivli, which was three times its auction base price of Rs 23 lakh. This converts to Rs 26,223 per sq ft.
Another 165 sq ft shop in Chandivli fetched Rs 55 lakh, which works out to Rs 33,438 per sq ft.
A 180 sq ft shop in Malvani got Mhada Rs 31.31 lakh, which is three times the base price of Rs 10.5 lakh.
Amarjeet Singh Manhas, chairman of Mhada’s Mumbai board, believes it got such high rates because of good construction quality and the strategic locations of the premises.
“These are good buildings and the shops provide good business opportunity,” Manhas told Hindustan Times.
The Mhada auctioned 130 of its 168 premises made Rs 29.14 crore in the deal.
Analysts, however, said this auction does not reflect the commercial market, which is currently facing a slump.
“These are local traders who know the market well and see a great business potential in these premises,” said Pawan Swamy, MD (markets), Jones Lang LaSalle Meghraj, a leading real estate consultancy firm.
He added that auctions typically fetch higher prices as they are driven by sentiments.