DB Realty is in the process of acquiring Tata Colony in Bandra (East) and has bought 122 square foot matchbox-sized houses at a record price of Rs 80 lakh each or Rs 65,573 per square foot.
The developer has, till date, bought 417 of the 497 one-room homes from the existing tenants of Tata Colony at Bharat Nagar and has already spent Rs350 crore on the acquisition.
The developer plans to construct a posh commercial complex on the 4-acre plot. DB will invest Rs 1,500 crore in the project and profiteer from the sale of at least 7 lakh square feet in the complex.
Some feel the price DB Realty has paid for the houses is high as luxury apartments in plush areas of Bandra (West), like Carter Road and Bandstand, are priced at Rs 35,000-Rs 40,000 per square foot. But, real estate experts said the location itself contributed to the high price.
The 80 residents who have refused to sell will be rehabilitated in 425 square foot houses. They are demanding Rs 1.50 crore for their tenements.