Despite an increase in prices and virtually no discounts, Piramal Realty’s first realty project—Piramal Vaikunth in Balkum, Thane, Mumbai—appears to have attracted a good response. FE has learnt that there’s just one apartment left of the smaller types—priced at Rs 1 crore for 515 sq ft—in the first of the 23-storey tower.
However, several of the larger flats—800-955 sq ft and priced upwards of Rs 1.5 crore, in other three towers—remain unsold. During the pre-launch period, the promoters had announced a special price of Rs 74 lakh for the smaller apartments but that has since appreciated to R8,350 sq ft and these now cost Rs 1 crore. The larger flats are now priced at Rs 9,261 per sq ft.
That could be one reason why interest is waning; the queues at the site are now much shorter than they were a couple of months back when bookings opened. Anand Piramal, executive director, Piramal Group confirmed Piramal Vaikunth had managed bookings worth Rs 200 crore in the first week of the launch; the bulk of this is for the smaller units a sign of what consumers are able to afford.
“We opened at Rs 8,080 per sq ft for standard units and Rs 8,640 for premium units in mid-September 2015 but they’re now Rs 8,350 to 9,261 per sq ft. That’s a return of approximately 7%,” Piramal said.
A check around Thane reveals that given the diversity in the buyer profile, which ranges from salaried professionals to businessmen and entrepreneurs, the market is offering residential units to suit different pockets.
Ashutosh Limaye, head of reasearch, JLL India points out that given the diversity in the customers buying houses in Thane there are projects available at about Rs 6,000 per sq ft in the interiors of the area while in some parts the rates are as high as Rs 10,000-11,500 per sq ft kind of rates in prime locations.”
According to consultants, projects in far flung areas in Thane like Kalwa and Manpada, currently offer projects in a range of Rs 6,000-Rs 8,000 per sq ft. Projects like Neelkanth Woods and Lodha Splendora are prominent here. However, Majiwada and Pokaran Road 1 and 2 have premium projects like Rustomjee Urbania and Lodha Luxuria commanding Rs 12,000 per sq ft.
Currently, most of the supply hitting Thane seems to be in the Rs 8,000-R12,000 per sq ft range. A recent report of CBRE observed that while the residential market in Mumbai witnessed a decline in supply addition in the first half of 2015, the extended eastern suburbs (such as Mulund West, Kanjurmarg and Bhandup) and Thane City accounted for more than 50% of the total units launched during January-June. However, the projects were largely concentrated in the mid-end and high-end segments in the price range of Rs 8,000-R11,500 per sq ft.