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Mumbai's First Land Sale in 18 Months Gets No BidsBy ugesh sarkar, Section Real Estate
Mumbai failed to lure any bidders in the first sale of land by the government in at least 1 1/2 years after the city authorities maintained rates at 2008 levels even as rents in the area dropped by more than a third.
Dilip Kawathkar, joint project director and spokesman for the Mumbai Metropolitan Region Development Authority, said a continued "recession in the real estate market" may have led to the absence of bidders today. The reclaimed marshland was valued at a minimum of 4.35 billion rupees ($95 million) after being offered for a reserve price of 300,000 rupees a square meter, unchanged from similar sales two years ago. The failed sale in the city's Bandra-Kurla Complex area may force the government to revise rates or defer sales of land in the area, which it wants to develop into an alternative to the congested Nariman Point business district in India's financial hub. Rents in Bandra-Kurla had dropped 36 percent by December from a June 2008 high, according to data from CB Richard Ellis. "The land price seemed to be on the higher side," Pujit Aggarwal, chief executive officer and managing director of developer Orbit Corp., said by telephone today. Orbit was one of the companies that had attended the preliminary bidding meeting last month. "It would have been tough to make money." Source: www.businessweek.com By Sumit Sharma Mumbai's First Land Sale in 18 Months Gets No Bids Click On "Full Story" For More...
Standard Chartered Plc, based in London, and Reliance Industries Ltd., the nation's most valuable company, are among companies that plan to host their offices in the Bandra-Kurla Complex area.
The 3,162.5 square meters (34,040 square feet) of land that was to be sold today in the north-central region of the city can be used to build as much as 14,500 square meters of office space, according to the government agency. `New Model' "The authority will decide on a new model and one of the options is to construct buildings and lease out offices," the MMRDA's Kawathkar said in Mumbai. "The price is not high." The government had in March 2008 failed to sell all the available plots for the first time since 1995 as slumping global markets deterred buyers. Mumbai is home to the nation's central bank, two main stock exchanges, and the main trading centers for diamonds, bullion, commodities, bonds and currency, as well as the world's most prolific movie industry. Overseas firms including Citigroup Inc. and Goldman Sachs Group Inc. have located their India headquarters in Mumbai. About 20,000 square meters of land is still available for sale at the Bandra-Kurla Complex area, Kawathkar said today. The latest sale effort is aimed "to cater to the growing demand for business area," the MMRDA had said. Housing Development & Infrastructure Ltd., Vineeta Wadhwa, and Oberoi Builders were among those that had indicated their interest at a preliminary meeting on Feb. 11, Kawathkar said today. "The market believes the current price levels are not sustainable at BKC," Sanjay Dutt, chief executive officer for business at Jones Lang LaSalle Meghraj, said in a telephone interview today. "Even as sales and business picks up, most companies remain cost-conscious to be competitive and this leads to pressure on office rentals as well."
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