    
Blazewada
Bewarse Legend
Username: Blazewada
Post Number: 10112
Registered: 08-2008
Posted From: 202.124.30.8
Rating: N/A
Votes: 0 (Vote!) | | Posted on Wednesday, May 26, 2010 - 10:27 pm: |
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Mumbai: Mumbai has set a new record in land auctions with the regional development authority, the MMRDA, auctioning an undeveloped plot for Rs 4,053 crore.
The city, which is undoubtedly one of the hottest real estate hubs in the country, matched the height of its high rises through the deal in which Lodha Developers has picked up a 25,000 sq metre plot in Wadala.
While the MMRDA's initial plan of constructing a 100-storey building in this area was scrapped by the Civil Aviation Ministry, with an unprecedented Floor Space Index (FSI) of 20, this could still end up being the tallest project in the city.
Under this deal, the developer can build a 80-storey tower. The 25,000 sq metre plot will yield a built up area close to 80 lakh sq feet which could be used for residential complexes, business centres, shopping malls and sports facilities.
The sale price is expected to be around Rs 14,000 per sq feet, which means the developers can expect to make a profit of Rs 3,036 crore out of the deal.
While this does seem like a great recovery from the recession for the real estate market, experts say there is still need for caution.
"The recovery seen in the last 12 months is the kind seen in a five-year property cycle, so this could also mean that the correction could come sooner than expected," says Sanjay Dutt, CEO, Jones Lang LaSalle Meghraj.
Meanwhile, the MMRDA plans to invest the money recovered from the sale on the city's infrastructure projects.
A Pat on your Back is few inches away from Kick on your Butt 
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