Mumbai `City' Redefined - August 12 , 2006. Times Property (Times of India)

With areas like Bandra and Andheri offering a range of recreational facilities and other options, 'downtown' is simply not the same

The definition of `town'; internationally referred to as `downtown', would usually mean developed locations in a city, a blend of commercial, retail activity and residential. The suburbs would be defined as a residential location with some commercial and industrial activities within certain locations.

Mumbai (Bombay) is a classic example of all of the above. Nariman Point, Marine Lines and Ballard Pier were and still are the office hubs, the cloth market, stock market (BSE), diamond market all of which still exist. People would and still travel to attend to their business across the city. Parel, Lower Parel and central Mumbai were full of industrial activities.

Functionally, this is exactly how our city was until the late 1980's. A lot changed with the help of technology and development of new locations. With technology we got an e-platform to trade with stocks and commodities; you could be sitting in Borivali and trading on your computer on the BSE or MCX commodity exchange. Development of the diamond bourse is about to change the way the city functions in that trade. With more and more development happening across the city, the definition of `town' and `suburbs' with regard to our city has changed.

From 2003 onwards we saw development of five-star hotels in Bandra, Juhu and near the airports. Addition of multiplex theatres in Andheri and Juhu; shopping, be it on high street or malls… it seems like `town' has stretched itself upto Andheri. All our friends from Cuffe Parade and Malabar Hill are almost envious on the variety that Bandra to Andheri has to offer on entertainment places, eating joints, shopping etc. Almost every weekend you find folks from South Mumbai traveling northwards.

What does all this mean in terms of real estate?

My father Devendra Narain had the privilege of selling homes at Cuffe Parade and offices at Nariman Point in the early 1970's as sales manager of `Makers'. An apartment in Maker Tower `B' that he had sold in early 1970's for approximately Rs.3,50,000 got sold for Rs 11 crore last year. When he sold barren re-claimed land as a dream home or office, it was a tough job. Today it is much easier to sell such projects.

Growth in demand in new locations equals to growth in property development which equals to growth in capital values and property prices. If you compare the prices of premium residential properties at Nepeansea road (sea front) and Bandra or Juhu (sea front) properties, the difference is negligible. An apartment of 3300 (almost carpet area) in `Tahnee heights' at Nepeansea Road would be priced at approximately Rs 12 to 13 crore; a property of similar area at Bandstand or Carter road or Juhu sea front will be at almost the same price or marginally less. We are currently selling 4,000-odd square feet carpet space, beach touching property with state-of-the-art construction and the works for Rs 12 crore at Juhu.