In the latest blockbuster real estate news, a beach-facing duplex condo in the tony Darshan Apartments on Mount Pleasant Road, South Mumbai, India, sold for a record $9.08 million at $215,276 per square feet, according to several news sources.
The deal is the most expensive sale transaction to have ever been made in India. The prime location of the residence added to its lofty sale price. Sitting just near the chief minister's house, the building has 42 units that all offer uninterrupted views of the Arabian Sea.
The home was sold August to a wealthy business family, The Bulchandanis. The residence is a 3510 plus square feet house, comprising of four bedrooms and 1386 square feet of open attached terrace area. It also provides for a 700 square feet covered garage area, reports The Times of India.
However, according to several experts, the massive sale price is not the general sentiment of the real estate market of Mumbai. It is probably a good time for foreigners to invest in the city. Since the rupee slide started, properties have become cheaper for non-residents. But investors are holding back for now as they anticipate the rupee to fall lower and reach at least Rs.65 against the dollar.
"It's the greed factor. They are waiting for the rupee to fall further and till it touches Rs 65. These are not actual users, but investors with surplus money,'' Pranay Vakil, chairman of Praron, an affluent property consultancy firm said to the TOI.
Indeed. The wealthy have been and will be investing in real estate in light of a dwindling economy, reports the Business Standard. Sometime back in March, Knight Frank, a global real estate research firm stated that the rich would allocate 25 percent of investments into real estate now.
Mumbai, the Indian equivalent of New York City is one of the most expensive cities of the world when it comes to real estate. It has always grabbed headlines for having the highest rents and square foot prices in the country, rivaling other expensive cities like London.
The Knight Frank report also ranked Mumbai the 16th most expensive city of the world. It also speculated that property prices in the city will probably shoot up 2 to 4 percent and up to 10 percent by 2014. According to SiliconIndia, the city's luxury rental market is also one of the most expensive around the world.
Bonus Fact- The cost of living in Washington DC or South Miami is much cheaper than that of Mumbai, according to Forbes.
Considering the current economic condition of the country, the city's real estate market could be a major recovery contributor.
