Real estate prices plunge in Lower Parel
Office sales and rentals have plunged by almost a third in the last two years in Mumbai’s alternative financial district of Lower Parel. The reason is a building boom that took place after various mill land sales 4-5 years ago.
In the recent years, Lower Parel witnessed launches of nine major projects, creating office space of nearly 5 million sq. ft.
Few days ago, Anchor Group bought over 38,000 sq ft in Tower B of Peninsula Business Park for about Rs 17,000 per sq. ft. while Tata AIG bought about 1 lakh sq ft in Tower A for about Rs 16,500 per sq ft. In 2010, the asking rate for office premises in these buildings was over Rs 22,000 per sq ft.
Office spaces that were available at Rs 275 per sq ft three years ago are now on offer for Rs 150 to Rs 175 per sq ft.
The office rentals are also facing the same situation. Developers are offering big discounts to draw tenants and buyers. Some are even ready to negotiate the deal close to cost price.
To read more real estate news:
Bureaucrat sets right construction approval system
Mumbai sales market stagnates in June
Source: The Times of India
Anchor Group, Buyers, cost price, launch, Lower Parel, Mumbai, office premises, office rentals, Office sales, Office space, Peninsula Business Park, rentals, Tata AIG, Tenants
