The big shift in Mumbai realty: When Cuffe Parade fell off the rich list

Mumbai is the 16th most expensive city globally in terms of owning a house but prime locations like Colaba, Cuffe Parade and Malabar Hills are no longer topping the residential price charts in terms of appreciation.

Data by real estate research firm shows that investor darling ‘Cuffe Parade’, has actually seen a price de-growth of 8 percent in the last three years, while Malabar Hills has seen an over 50 percent appreciation in prices.

In Mumbai, with the business district shifting to Bandra Kurla Complex (BKC) for all practical purposes, the rich who would previously not have considered any options other than Malabar Hill or Nepean Sea Road zone are now evaluating newer areas like Worli, Bandra-BKC and Mahalaxmi as alternatives. Little wonder that prices in BKC alone have shot up 29 percent in the last three years from Rs 35,000 a square feet in 2011 to Rs 45,000 in 2014.

“Considering the limited supply in the historically prized locations, HNI buyers are looking for premium options that provide 24x7 security, a gated community experience and premium club houses as an amplification on their experiences in stand-alone buildings in the traditional premium areas,” said Om Ahuja, CEO, Residential Services, JLL India.

Explaining the rationale behind the 57 percent hike in prices in Malabar Hills, Ahuja said many builders like K Rahejas and Lodha are now creating ultra-luxury gated communities in Mahalaxmi and Lower Parel which are now being accepted as the ’luxury pin code’ by South Mumbai’s wealthy home buyers. Similarly in BKC and Goregaon where the population densities are low, builders likeSunteck and Oberoi Realty have created new luxury housing addresses for HNI buyers.

Earlier apartments in Mumbai’s NCPA commanded the highest premiums due to the sea view but its biggest USP was that it was closest to the erstwhile central business district of Nariman Point. Today, Mumbai’s BKC has become the new luxury address of Mumbai because the business community as well as the Diamond Bourse have now shifted there.