Mumbai: With improved market conditions, Mumbai-based real estate company, Modern India Ltd has finalised the sale of four residential flats, sized 2,100sq ft each at its high end Belvedere Court, which is a 40-storey residential tower in Mahalaxmi, Mumbai at a price of Rs25,000 per sqft.

According to Vijay Kumar Jatia, chairman & managing director, Modern India Ltd, “We got a good price for the flats, because there will always be a demand for value proposition, with buyers prepared to give more for it. The fact that our flats sold at a premium is indicative that we hold a good name in the market. “Recent research reports show that comparable flats (Vivarea, Planet Godrej) in the vicinity fetched between Rs 19,400 to Rs 20,000 per sq ft.The company had been exploring the possibility of selling a few flats it owned in Belvedere Court with a view to unlock value and generate resources, and the good price that they fetched is a promising sign that the slump facing the real estate is finally turn-ingaround.

With disappeared end-users and investors increasingly returning into the real estate market, the sale comes at a time when Shapoorji Pallonji’s twin towers in Tardeo commands price of between Rs 45,000 to Rs 55,000 per sq ft. Currently, penthouse spread across two levels in South Mumbai commands prices of between Rs 60,000 to Rs 70,000 per sqft.

According to Sanjay Dutt, chief executive officer - business, Jones Lang LaSalle Meghraj (JLLM), “In Q2 2009-10, real estate market has started witnessing emergence of buyers, unlike Q4 2008-09 when the sector witnessed slowdown and builders were forced to lower realty prices by 40 %. But now, builders are planning to bridge the pricing gap by hiking prices of premium properties by 30% in prominent premium apartments in Bandra, Worli, South Mumbai apart from Delhi’s Connaught Place and East of Kailash by Diwali this year.”

Looking at the current market condition, industry experts believe that emerging prices of premium residential apartments in South Mumbai, Mahalakshmi, Worli, Napeansea Road in Mumbai besides Delhi’s Connaught Place and East of Kailash will rise further by 15 % to25 % in this Diwali 2009.

Source: The Financial Express

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