Representative ImageRealty developer K Raheja Corp will develop a 2.5-acre land parcel in Mumbai’s Worli into a luxury residential project with revenue potential of more than Rs 2,000 crore, said persons with direct knowledge of the development.The developer’s residential platform 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 covering 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 freehold, while some portion is leasehold that will need an approval 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 time of going to press.Over the past two years, the Indian luxury housing market has witnessed a remarkable surge in demand 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 luxury homes priced at Rs 50 crore and above reaching Rs 4,319 crore in 2023 as against the value of Rs 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 transactions, with at least 45 luxury homes 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 transactions recorded in upscale South Mumbai and Worli-Prabhadevi area. Realty developers have been capitalizing on this growing appetite for luxury properties, by Introducing innovative designs, world-class amenities, and bespoke services to cater to the evolving tastes of affluent homebuyers.
Published On Mar 28, 2024 at 09:02 AM IST
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