At a time when home sales are sluggish in Mumbai for the past many quarters, real estate developer Lodha Group is planning to sell its upcoming premium residential project in Worli on a ‘first-come-first-served’ basis.
According to the executive from property consultancy, Lodha will start distributing applications along with a ‘prospectus’ on the project from January 7, and prospective buyers need to fill and give them to the company by the third week of January and the company will allot apartments on first-come-first-served basis. Lodha is planning to disclose the price on January 16.
The project will have two, three and four bedroom apartments.
However, consultants expect the company to keep the pricing of a two-bedroom apartment at around Rs 3.5 crore and keep the unit sizes to be less than 1,000 sq ft for a two bed room apartment. Prices in the area hover around Rs 30,000 sq ft.
At five minute's drive, in the Lower Parel area, Lodha was quoting a price of Rs 8.5 crore for a 3,000 sq ft basic apartment in World Crest for Rs 8.5 crore and in the main tower World One, apartment prices start from Rs 9.5 crore.
A consultant, who was briefed on the Lodha project, said that the recent success of L&T-Omkar's slum redevelopment project in Bhoiwada, Parel area in Mumbai has made developers to relook at apartment sizes and pricing to generate fast sales. L&T Omkar priced project at Rs 19,000 per sq ft, as against the market price of Rs 20,000-Rs 28,000 sq ft in the area. Though the combine got booking for 600 apartments, they stopped at 450.
“In today’s environment, you cannot get a two bedroom apartment for Rs 3 crore in South Mumbai and prices have reached Rs 2.5 crore for 2 BHKs in Goregaon and Jogeshwari. Hence people are shifting to place like Sewri and Parel which are priced around Rs 3 crore,” said chief executive of an interantial property consultancy, who did not want to be quoted. “You should also remember that very few developers are doing 2 BHK apartments in South Mumbai.”
Lodha had recently bought this plot from DLF, the country’s largest developer, for Rs 2,727 crore in one of the largest realty deals. Lodha has codenamed the project as ‘Blue Moon’ which will have around 2,000 apartments.
Lodha spokesperson did not respond to text messages and calls on the subject. When Lodha acquired the land from DLF, company's managing director Abhisheck Lodha said they have paid Rs 5,500 per sq ft given the total saleable area of five million sq ft.
"They are trying to create hype with this marketing gimmick," said a marketing head of a Mumbai-based real estate company.
According to sources in the group, the company will use algorithm based system to choose buyers. “The buyers will have to give options in terms of configurations, floor size and so on. Those who will apply first will get the first chance of getting apartments,” said sources.
“We have seen phenomenal response for the project as it is centrally located and well connected. We thought if we go through conventional route, it would have taken forever to clear the queue. Hence we decided to make people apply,” sources added.
Another consultant said the buyers will think thoroughly before they apply. “It is not like applying for shares. Home buying is an emotional subject for many and they want many things customised for them.”
