Flat fetches record 1.07 L/sq ft

A closed-door auction for an apartment in upscale Worli, held at a prominent south Mumbai five-star hotel on Tuesday morning, has created a national record. Flat 203 on the third floor of the luxurious Samudra Mahal building in Worli was sold for Rs 1,07,000 per sq ft. The reserve price was fixed at Rs 75,000 a sq ft.Winning bidder is believed to be a leading corporate honcho. The deal was brokered by Jones Lang Lasalle and the auction had only four bidders.

When it was completed in 1970, Samudra Mahal was Mumbai’s most expensive building. Bookings had then commenced around Rs 700 a sq ft.

Although the 1,706-sq-ft (built-up) apartment auctioned on Tuesday will fetch its seller, Standard Chartered Bank, more than Rs 18 crore, the transaction is the highest ever in terms of per sq ft rate.

In April 2010, a duplex in Samudra Mahal, Worli,
was sold for Rs 36 crore—about Rs 1.03 lakh per sq ft In August 2009, an apartment in Maker Tower B, Cuffe Parade, was sold at approx Rs 93,000 per sq ft

In May 2008, actor Vinod Khanna and his wife bid Rs 1.20 lakh a sq ft, or Rs 30 crore, for a 2,500-sq-ft (carpet area) apartment in Il Palazzo, Malabar Hill. However, the deal fell through a couple of months later

In 2007, a flat in NCPA Apartment at Nariman Point was bought for Rs 34 crore—Rs 97,000 a sq ft Old south Mum bldgs still command a price 

However, real estate sources said the deal was not representative of the residential market, including the high-end luxury segment, and termed it another one-off sale.
Tuesday’s deal comes just seven months after a 3,600-sq-ft duplex on the 19th and 20th floors of the building had created a record when the widow of a leading banker quoted about Rs 1.03 lakh per sq ft—more than Rs 36 crore—for the apartment owned by Royal Bank of Scotland. However, since then, this duplex has still not been shown as transferred in the society’s record, giving rise to speculation that the deal had fallen through. But sources said such deals take several months to get formally registered.

The latest transaction is about Rs 4,000 per sq ft higher than the previous one for the duplex at Samudra Mahal. The 28-storey, sea-facing building has been one of the most sought-after residential premises in Mumbai and commands a premium price whenever any of its flats is for sale.

The building has a swimming pool, a children’s play area and a small football field. One of the occupants of this building are the Scindias of Gwalior (the family of the late Madhavrao Scindia). Industrialist Nusli Wadia once owned a triplex spread over 8,000 square feet here, which he sold for more than Rs 30 crore about five years ago.

In 2007, NCPA Apartment at Nariman Point had witnessed a record deal when a flat measuring 3,475 sq ft (super built-up) was bought by a London-based NRI at a rate of Rs 97,842 a sq ft (Rs 34 crore). More recently, in May 2010, the art deco Kamal Mahal building on Carmichael Road in south Mumbai fetched its owner around Rs 33 crore.

In May 2008, actor Vinod Khanna and his wife bid Rs 1.20 lakh a square foot, or Rs 30 crore, for a 2,500-squarefoot (carpet area) apartment in Il Palazzo building on Little Gibbs Road, Malabar Hill. However, the deal fell through a couple of months later.

Incidentally, buildings constructed 40 to 50 years ago in south Mumbai still command record-breaking prices compared to upcoming luxury towers. For several years now, some of the biggest apartment transactions in India have occurred in a handful of south Mumbai buildings such as Samudra Mahal, Il Palazzo, NCPA, Kamal Mahal, Hill Park and Usha Kiran.

It is mainly the snob value of these properties and their prime location that make them so desirable. Property brokers said there is a certain class of people who want to move into such buildings, which are very well-maintained. And they are willing to pay a fancy price for the location.
Another important factor is that flats in new luxury high-rise