In one the costliest land deals in Mumbai, a building in Borivali (West) was sold for a stunning 1.5-lakh per square feet for business purpose but an expert said that this price would not be a standard for the area. The building, Mangal Kunj having an area of more than 1 lakh square feet has been sold to a matka king.
But a real estate expert said the deal will not affect real estate value in that area as it is much over the pricing standard of that place. Anuj Puri, Jones Lang Lasalle Meghraj (JLLM’s ) chairman and country head stated, “Real estate values in a location are not generally influenced by oneoff deals, especially if the final valuation of that deal is far beyond the pricing norm of that location”.
He said that market conditions in Borivali were led by the mid-income segment. He said, “Any developer there would cater to the catchment, according to the existing profile, instead of being influenced by such over-valued deals”. But property prices in Borivali are rising slowly, he added. High-value land deals in the prime areas of Nariman Point and Colaba, do affect the general property prices there, he said.
He added, “Any major deal in these localities will have an impact on property values here, as the pricing norms are upward inclined. But in a place where real estates prices are comparatively less, it is unlikely that it would have an impact on the property prices there”.