South Mumbai marquee property rates experience a severe downfall

Large sea facing buildings, located to the south of Mumbai, has always experienced a staggering hike in price rate. However, with the establishment of new apartments that blocks the sea-view, property prices in south Mumbai have fallen down by 30%.

A sea-facing property in south Mumbai (like Colaba, Juhu, Worli, Cuffe Parade, Versova etc.) is one of the biggest assets for home buyers in the city and is a huge status symbol. House facing plays a crucial role in determining its cost, since it allows a builder or seller to charge a certain premium.

Difference in property rates
Owning an apartment at a higher floor for a better view is likely to cost more. The rental value of a mid-sized 1000 sq ft flat in a posh area in Mumbai, which is not sea-facing, will cost around Rs 1.25 lakh. The same sq ft flat in a sea-facing area will value around Rs 2.5 lakh.

However, according to Cushman and Wakefield reports, marque flats near south Mumbai that earlier promised a view of the race course(Mahalaxmi Racecourse) and marine drive has experienced a sudden downfall in rate. The fall in prices has been fueled by the construction of new apartments which have blocked the view of marque properties.

With the construction of new towers, properties at marquee locations have lost their demand significantly. Properties such as the Imperial Towers in Tardeo, Lodha Bellisimo in Mahalaxmi and Kamal Malal on Carmichael Road have witnessed a sudden drop in prices up to 30%, since their view is blocked with the establishment of new buildings. Buying of such posh properties in south Mumbai is just left as an addition to status symbol.

Experts View
According to property consultants, construction of new apartments have drastically affected the prices of luxury houses. Home buyers who have paid extra previously to acquire a possession in such marquee locations will be at a loss. Prices will be under pressure, after the view at posh locations are blocked. Kamal Mahal, a marque property on Carmichael road, is lacking buyers for its apartments, due to construction of the newer apartments before it.

Before the construction of newer apartments, the luxury properties in south Mumbai would range between Rs 90000- Rs 1Lakh per sq ft. However, with the growth of newer apartments, the rates of such buildings have gone down to Rs 60000- Rs 70000 per sq ft. One of the first skyscrapers of India, the 25-storeyed building-Usha Kiran, is one of such posh apartments to have experienced a sudden fall in price.

Property brokers in Mumbai further confirm that a house in Chembur suburb would cost around 2.1 crore for 11th floor and 1.7 crore for the fourth floor. However, with the blocking of the view due to a newer construction, the present price will be severely affected, because home buyers do not wish to compromise with a partial view.