BKC auction indicates realty slowdown

BKC auction indicates realty slowdown

As per media reports, the Mumbai Metropolitan Region Development Authority (MMRDA) had recently put five plots on auctions in the G-Block of the Bandra-Kurla Complex, comprising two commercial, two residential and a clubhouse. Out of the these five plots, the authority only managed to sell three plots for Rs1,322 crore. Of these three plots, the authority sold one commercial plot, spanning 24,000 square metre, to Jet Airways for Rs826 crore. This implies a selling price of approximately Rs32,000 per square feet (Rs314,467 per square metre) for the commercial plot. This selling price is at a 31.7% discount to the Wadhwa Builders’ bid of Rs46,806 per square feet (or Rs503,636 per square metre). It is also interesting to note that Jet Airways was the sole bidder for the commercial plot in the recent auction.

With the stock markets experiencing a bear phase it will be interesting to see if prices of real estate also undergo a correction and to what extent.. 5%, 10% … 25%?

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Author: Austin Comments: 2 comments Date: 21 Mar 2008
Categories: Real Estate Tags: , , ,

There are 2 comments. Leave a comment!

  • ¬ BKC auction indicates realty slowdown
    #5 March 21st, 2008 at 1:44 am

    [...] What OMDN Blog – High Quality Articles » OMDN wrote an interesting post today onHere’s a quick excerpt As per media reports, the Mumbai Metropolitan Region Development Authority (MMRDA) had recently put five plots on auctions in the G-Block of the Bandra-Kurla Complex, comprising two commercial, two residential and a clubhouse. Out of the these five plots, the authority only managed to sell three plots for Rs1,322 crore. Of these three plots, the authority sold one commercial plot, spanning 24,000 square metre, to Jet Airways for Rs826 crore. This implies a selling price of approximately Rs32, [...]

  • ¬ Chris Moran
    #6 March 21st, 2008 at 1:50 am

    Nice writing style. Looking forward to reading more from you.

    Chris Moran

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