Sunteck Enters Andheri West – Link Road with JV with Transcon Developers
Real Estate Marriages are not exactly a match made in heaven, but for Mumbai market these matches, joint developments, collaborations are definitely a win win for all stake holders.
It’s now very difficult in Mumbai to own land, develop and sell it and if there are partners in this, life becomes easier as the cost of land which is the major cost is with one partner and the other one with expertise and cash as the construction partner. This is not new to the Mumbai Property Market.
In the recent years, we have seen Omkar & L&T, Sheth – Transcon, Oberoi – Sahana, DB Realty – Radius, Piramal – Omkar, Shapoorji Pallonji partnering with Lokhandwala, Wadhwa – Hubtown, Rustomjee – DB Realty, Radius – Sumer.
You can clearly see the basis of Joint Venture – One has land and the other has Cash so this is going to be the story of Mumbai Property Market going forward.
Andheri West is a pretty good market for any developer to enter as the demand is ever green and in the next 5 years, Andheri West would have multiple metro connectivities and it will become the central node and a very very important location with superb unmatched infrastructure around.
If there is any location in Mumbai, which will see a continued growth, it is Andheri West. The lease rent rates in Andheri West for a 1/2/3 BHK have strengthened and the rates have gone up by at least 20% in the past 2 years due to an ever growing demand.
Effluent Mumbai residents, after residing in Bandra or Juhu or even South Mumbai come to terms only with Versova, 7 Bunglows, Lokhandwala etc. Andheri West today has 3 and 4 bhk apartments in the top segment starting from 7 cr and going upto 15 cr or even more in Buildings like Parthenon, Windsor, Bay View, Mannat, Rustomjee Elements.
The project in the new venture is Transcon Triumph which is currently adjoining Oberoi Springs and its in the monginis lane opp.Citi Mall on Andheri Link Road. Although, the lane is narrow, but it offers a 1 min connectivity to Link Road which is a saviour and it will be 3 min walking to the Shastri Nagar Metro station, Andheri West (Infinity Mall). The land is nearly 7 acres out of which one tower is already developed and likely to be completed by early next year.
It will be interesting to see what configurations Sunteck – Transcon come up with and what price points and the total purchase price. Oberoi Realty in 2004/5 came up with 2.5 BHK flats and they commanded the highest price and appreciation in the same micro market, due to their awesome planning, pricing and configurations. The demand in the Andheri West market for 2 bedroom is in the range of 2.25 to 2.50 and for 3 its in the range of 3 to 3.50 Cr max. So if Sunteck sets its configurations right then they are in for a good win in Andheri West.
Author – Sandeep Sadh – Mumbai Property Exchange