Worli residential project likely to have revenue potential of over 2k crore.
Mumbai: Realty developer K Raheja Corp will develop a 2.5-acre land parcel in Mumbai’s Worli into a luxury residential project with re- venue potential of more than ₹2,000 crore, said people with direct know- ledge of the development.
The developer’s residential plat- form and the landlord have finalised a revenue share structure for the proposed joint development, wherein K Raheja Corp will get 57% revenue share, while the balance 43% will go to the landlord.
As per this agreement, the developer will be responsible for all planning, design, approvals, execution, branding, and sales efforts. The pact stipulates that K Raheja Corp is expected to complete the project within five years. “The entire project is estimated to have a development potential of around 3 lakh sq ft carpet area. The agreement cove- ring the joint development was registered on Wednesday,” said one of the persons mentioned above.
Around one-third of the land parcel currently houses an office building with over 40,000 sq ft leased space, and the balance has some commercial outlets along with some vacant portions. Part of the land is free- hold, while some portion is lease- hold that will need an approval.
Development potential of 3 lakh sq ft carpet area
Indian luxury housing market has witnessed a surge in demand, sales
from the Maharashtra Housing & Area Development Authority (MHADA).
ET’s email query to K Raheja Corp and transaction advisor JLL India remained unanswered until the ti- me of going to press.
Over the past two years, the Indi- an luxury housing market has wit- nessed a remarkable surge in de- mand and sales activity across the nation’s top eight cities.
The luxury property market in India has recorded over 1.5 times growth in the sales value of luxu- ry homes priced at ₹50 crore and above reaching ₹4,319 crore in 2023 as against the value of ₹2,859 crore recorded in 2022, showed a JLL India analysis. This surge in sales value was accompanied by a rise in the number of transac- tions, with at least 45 luxury ho- mes sold in 2023, compared to 29 homes sold in the previous year. Out of the 45 transactions, 58% were apartments and the rest 42% were bungalows.
The country’s financial capital, Mumbai emerged as the leader in this segment, with most such trans- actions recorded in upscale South Mumbai and Worli-Prabhadevi.
Source- The Economic Times
