MUMBAI, Nov 7: With builders leasing out slow-selling apartments, activity in the property market has gained momentum. A large amount of new stock is expected to be added to the market in the Lower Parel, Bandra and Andheri areas, according to a market update by international property consultantsThis move helps the builder generate immediate cash flow and defers any potential loss upon sale.The leave-and-license market has been active and several transctions have been finalised in all parts of Mumbai. South Mumbai witnessed transactions as high as Rs 2.75 crore to Rs 4 crore as deposit plus Rs 35,000 to Rs 40,000 a month as rent for a 3,000 sq ft to 5,000 sq ft apartment. Several rental advance license transactions with rentals of Rs 100,000 to Rs 150,000 per month payable annually in advance were concluded for three bedroom flats measuring 1,400 sq ft to 1,800 sq ft in Cuffe Parade and at Ridge Road.
According to the report counter guarantees for protection of security deposits are also becoming acommon request by the licensee.
A recent case in point is a foreign company which concluded a transaction in Walkeshwar for a fully-furnished apartment at Rs 1.5-crore deposit and Rs 25,000 per month as rent with the licensor providing a bank gurantee for the entire amount.
Bandra remains popular for middle- to senior-level executives. Recent transactions for two bedroon apartments at Rs 20 lakh to Rs 25 lakh as deposit plus Rs 12,000 to Rs 18,000 per month as rent have been concluded.
More stock in this locality is becoming available on a rental advance basis with rentals ranging from Rs 35,000 per month for two bedroom apartments to Rs 110,000 per months for three bedroom apartments.
The property market continues to be dominated with residential property comprising appoximatley 54 per cent of the total transactions, Interestingly 90 per cent of the residential transactions were concluded in south Mumbai, indicating that there is consistent demand for high profile locations like Napeansea Road,Cumballa Hill, Kemps Corner and Cuffe Parade.
Commercial transactions accounted for approximatley 20 per cent of the total activity. Commercial sales activtiy was concentrated in the Nariman Point, and Fort areas od south Mumbai, while north Mumbai accounted for just 14 per cent of commercial transactions.
Land transactions in August also included the purchase of almost 12,000 sq ft off Saki Vihar Road and two separte land sales in Marol Maroshi Road.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
Printer-friendly page
