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Nariman Point has got serious competition as the costliest business district in Mumbai. Land prices in the lush acres of the Bandra-Kurla complex today touched an unprecedented Rs 153,000 per square metre.
In Friday's auction, nine plots totalling 26,836 sqare metres were sold by the Mumbai Metropolitan Regional Development Authority to raise Rs 1,190 crore (Rs 11.9 billion) for its various development projects.
The authority sold five commercial, three residential and one star-category hotel plot. The biggest of the commercial plots (10,000 sqare metres) on sale today, was picked by Jet Airways.
Other plots were bought by TCG Urban Infrastructure, Inam Securities, Greenbird Developers, Naman Developers and Starlite. Starlite paid the highest price for a residential plot - Rs 102,000 per sqare metre.
The bids, between 110 and 120 per cent above the previous prices, took both city developers and MMRDA officials by surprise. Sources in MMRDA revealed that internally the cumulative value of the plots had been pegged between Rs 500 crore (rs 5 billion) and Rs 600 crore (Rs 6 billion).
Anuj Puri, MD of Trammel Crow Meghraj real estate consultant said, "This sale has established that the Bandra-Kurla complex is the next Nariman Point. It is now the second business district in the city. Also the occupier profile has changed - while Nariman Point now has liaison or representative offices, it is the Bandra-Kurla complex that corporates come to when it comes to larger floor space needs."
With corporates such as ICICI, IL&FS, Citibank and the National Stock Exchange, BKC is fast turning into a hot and happening destination for businesses in the city.
Built-up real estate prices in BKC are almost neck and neck with Nariman Point - Rs 130-145 per sq ft in Nariman point vs Rs 120-135 per sq ft in BKC. Also, BKC has more built up space available compared to Nariman Point - 2.32 million sq ft in Nariman Point against 15 million sq ft at BKC, and with far better connectivity, both existing and planned.
Said the MMRDA project director T Chandrashekhar, "This will be the next business destination in the city for investors and corporates who are looking at setting up offices in Mumbai."
He added that MMRDA is planning to develop the infrastructure in the 120 hectare complex to attract investors. These include a water transportation plan on the Mithi river which criss-crosses the complex, and a new Metro rail corridor connecting BKC to Mankhurd as well as the widening of the arterial Western and Eastern Highways which pass through the complex.