Thursday, Oct 23, 2014

Mumbai finds no takers for super-luxury Rs 100-cr flats

The 55-storey Sasen building. (IE Photo: Pradeep Kochrekar) The 55-storey Sasen building. (IE Photo: Pradeep Kochrekar)
Written by Shalini Nair | Mumbai | Posted: January 30, 2014 4:05 am | Updated: February 6, 2014 12:48 pm

The palatial 15,000 sq ft duplexes in the under-construction 55-storey Sasen building on tony Napean Sea Road offers the country’s costliest residences at Rs 100-120 crore each. But for six years now, the project, earlier known as Lotus Villa, has not sold a single unit.

Since the 2006 boom, similar islands of super-luxury residences carrying price tags of over Rs 20 crore each have come up in the city. However, almost half of these remain unsold, reducing new launches to a trickle, according to data compiled by real estate research firm Liases Foras.

The city has a total marketable supply of 1,000-odd apartments spread across 27 premium residential projects priced at Rs 20-100 crore each. According to the available data, 85 per cent of such projects were launched between 2006 and 2010.

Over the last two years, just one new project — 1972 Omkar in Worli — has been launched in the Rs 20 crore-plus segment.

The pattern of unsold stock repeats itself across big ticket projects that are on offer from listed players like Indiabulls Bleu in Worli, D B Realty’s Orchid Heights and Orchid Turf view in Mahalaxmi and Razzak Heavens by Orbit group on Napean Sea Road.

Pankaj Kapoor, managing director, Liases Foras, said at today’s rate of absorption, it will take another 100 months (over eight years) for the existing stock to be sold.

“The ideal rate of absorption in a healthy market should not be more than 20 months in the super-luxury segment. In fact, our data on unsold super-luxury houses itself is an underestimation. If the stock being held by investors rolls back into the market, the actual
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