Mumbai Real Estate: Top 4 land deals worth nearly ₹5,000 crore closed in BKC, India’s costliest commercial district

BKC in Mumbai has seen land transactions totaling ₹5,000 crore, highlighting its status as India's priciest commercial district amid limited land availability

Land deals worth nearly ₹5,000 crore have been reported in Bandra Kurla Complex (BKC), Mumbai's most expensive commercial district.

Mumbai real estate: ₹5,000 crore worth of land deals have been reported in Bandra Kurla Complex (BKC), Mumbai's most expensive commercial district. (Picture for representational purposes only)(MMRDA website)

Given Mumbai's limited land availability, vacant land deals are a rarity in the city's financial hub. However, the Mumbai Metropolitan Region Development Authority (MMRDA), the special planning authority (SPA) for BKC, has successfully leased five land parcels from its landbank for a term of 80 years, generating close to ₹5,000 crore in revenue.

Here's a look at four land transactions reported in BKC last week.

1) Japan's Sumitomo wins bids for leasing two land parcels in BKC

Japan's Sumitomo's Goisu Realty Pvt Ltd won bids to purchase two land parcels measuring over 13,167 sq meters for around ₹2,538 crore. According to MMRDA, the authority will lease the two land parcels in G Block of BKC for a period of 80 years, and they will have a development potential of over 52,000 sq meters.

2) Consortium led by Brookfield wins bids for 8,411 sq m land parcel in BKC

A consortium led by Brookfield, including Schloss Bangalore Ltd, Arliga Ecospace, and Schloss Chanakya Pvt. Ltd., won the bid to lease 8,411 sq meters of land in BKC's G Block. The land parcel has a development potential of 33,647 sq meters and will be leased for 80 years at ₹1,302 crore, MMRDA said on April 4.

3) Maharashtra Pollution Board leases land in BKC for ₹468 crore

The Maharashtra Pollution Control Board (MPCB) last week leased 34 acres of land from MMRDA for ₹468.6 crore for 80 years to construct Paryavaran Bhawan, according to a report by Hindustan Times.

The MMRDA leased this land in BKC's G Block of the central business district, with a permissible built-up area of 13,602 square meters.

While private entities are allotted land purely on the basis of bidding, the MMRDA allots land to government bodies with an approval by the MMRDA's chairman, the deputy chief minister of Maharashtra Eknath Shinde.

4) National Stock Exchange (NSE) leases plot in BKC for ₹758 crore

On April 6, the MMRDA announced that it has allocated an additional plot of 5,500 sq m to the National Stock Exchange of India (NSE) for ₹757.9 crore.

The land in the ‘G’ Block of BKC spans 5,500 sq m and allows for a built-up area of 22,000 sq m under a permissible FSI of 4.00. The authority said the plot will be leased for 80 years at a premium of ₹757.90 crore and will be used to construct a new administrative building for the exchange.

All about BKC

BKC has several government offices, including MMRDA, Goods and Service Tax (GST), Reserve Bank of India, Income Tax Department, and Family Court. The US consulate is also located there near the Jio Convention Centre. Luxury hotels such as Sofitel and Trident are also in BKC.

Prominent companies with offices in BKC include Jio, Apple, Netflix, Google, Facebook, Amazon, the National Stock Exchange, Standard Chartered Bank, WeWork, CISCO, Pfizer, Spotify, and Blackstone.

According to local brokers, the rental value of commercial spaces in BKC ranges between ₹150 to ₹500 on a per sq ft basis. In several high ticket deals, the rental has also touched ₹1,000 per sq ft.