Central Mumbai to give Nariman Pt a run for its money

MILL LAND JUDGEMENT IMPACT

With the Supreme Court paving the way for the development of the 600 acres of mill lands, the city can now look forward to some quality developments in central Mumbai, say real estate experts.

They point out that the Parel/Lower Parel area is likely to emerge as the central business district (CBD), replacing Nariman Point and will give Bandra Kurla Complex, another CBD, a tough competetion.

Said Anuj Puri, managing director at real estate consultants, Trammell Crow Meghraj, "The Lower Parel area can now emerge as the central business district as a number of quality commercial properties, both retail and office, can be developed on the mill lands. Given its proximity to south Mumbai, the developments in Lower Parel area will be able to command high prices which will translate into good value for the investors."

Ness Wadia of Bombay Dyeing Realty, pointed out that the area will not lack green spaces. "We will finally see the regenration of central Mumbai with good mix of built up and open green spaces. This part of the city will have green lung space""some of it private"" of around 196 acres, equal to three Shivaji Parks."

According to industry estimates, the cumulative development potential of the cotton textile mill lands in the city is to the tune of 60 million sq ft. The five mills sold by NTC are expected to release around 3 million sq ft into the market in the next 3-4 years.

These developments are also expected to stabilise prices in the city in the medium term, but outright decline will not happen. City realty prices have been spiralling in the last few months given the uncertainty over the availability of the mill lands for development.

Developers and consultants estimate that the current upward spiral will stablise at least for the mill land area with the assurance of more land coming into the market in the next 3-4 years.

Said Niranjan Hiranandani of Hiranandani Constructions, "This will be good for the real estate market in the city as a large amount of housing, commercial and retail developments will come into the market now. It will also strike a positive note with the investors who were wary of investing in the city as well as encourage foreign investors."

Added Puri, "The impact of the judgement will also felt in the residential segments as not all mills will be viable as commercial properties. Mills which are not located on the main roads are more likely to come up as residential properties. With the spurt in both commercial and retail properties in the mill area, the demand for residential properties will also go up and developers will continue to find them attractive as prices are not likely to go down."

Added Kekoo Colah, executive director at real estate consultants Knight Frank, "With the assured supply of land coming into the market for development, stable prices in this micro market may have a ripple effect in other parts of the city too."