By K Raheja Corp Group, a real estate firm, plans to transform a 2.5-acre plot in Mumbai’s Worli area into a high-end residential complex, which is expected to generate over Rs 2,000 crore in revenue, according to sources familiar with the matter.
The company, alongside the property owner, has agreed on a profit-sharing arrangement for this collaborative venture. Under this agreement, K Raheja Corp will receive 57% of the revenue, with the remaining 43% allocated to the property owner.
Under the terms of this deal, the developer will take on the responsibility for the entire project lifecycle, including planning, designing, securing approvals, carrying out the construction, branding, and managing sales. The agreement also specifies that K Raheja Corp Group should finalize the project within a five-year timeframe.
The projected development for the entire initiative is roughly estimated at 3 lakh square feet of carpet area, with the joint development agreement being officially recorded on Wednesday, according to a source.
Presently, about a third of the property is occupied by an office building, leasing over 40,000 square feet, while the remainder includes commercial spaces and some unoccupied areas. A portion of the property is owned outright, with another part held on a lease that requires authorization from the Maharashtra Housing & Area Development Authority (MHADA). As of the publication deadline, there had been no response to inquiries sent to K Raheja Corp and their transaction advisor JLL India.
In the last two years, there’s been a notable uptick in the Indian luxury real estate sector, with significant increases in demand and sales across the major eight cities.
According to a JLL India report, the Indian luxury real estate market saw a more than 1.5-fold increase in sales value of high-end homes valued over Rs 50 crore, totaling Rs 4,319 crore in 2023, up from Rs 2,859 crore in 2022. This increase in sales value was matched by a higher transaction count, with at least 45 luxury properties sold in 2023, up from 29 the previous year. Of these sales, 58% were apartments, and 42% were bungalows. Mumbai, India’s financial hub, led this market segment, particularly in the affluent South Mumbai and Worli-Prabhadevi districts. Real estate developers have been leveraging this heightened interest in luxury properties by offering innovative designs, premium amenities, and personalized services to meet the sophisticated preferences of wealthy buyers.
K Raheja Corp Group: Nestled amidst the bustling cityscape of Mumbai lies a prime piece of real estate waiting to be transformed into a masterpiece by none other than the renowned K Raheja Worli Mumbai . With their vision and expertise, this 2.5-acre land parcel in Worli is set to redefine luxury living in the heart of the city. Let’s delve into how this strategic acquisition is set to make waves in the Mumbai real estate market!
Land Parcel in Mumbai Worli: Nestled in the vibrant city of Mumbai, Worli is a bustling neighborhood known for its mix of commercial and residential spaces. The recently acquired 2.5-acre land parcel by K Raheja Corp Group is set to make waves in the real estate scene. This prime location offers unparalleled views of the Arabian Sea and easy access to major highways, making it an ideal spot for development. With its proximity to key business districts and luxury hotels, this land parcel presents a unique opportunity for innovative architectural design and modern amenities. Developers can capitalize on the high demand for upscale living spaces in this prestigious area, attracting discerning buyers looking for convenience and luxury. The strategic location of this land parcel ensures that any residential or commercial project will benefit from being at the heart of Mumbai’s thriving real estate market. Stay tuned as K Raheja Worli Mumbai works their magic on this promising piece of land in Worli!
Benefits of the Location for Real Estate Development: The newly acquired 2.5-acre land parcel in Mumbai Worli by K Raheja Corp Group comes with a plethora of benefits for real estate development. Located in one of the most prestigious and sought-after areas in Mumbai, this prime piece of land offers immense potential for creating luxury residential or commercial spaces. Strategically situated in close proximity to key business districts, entertainment hubs, and transportation links, the location provides convenience and accessibility to residents and workers alike. With picturesque views of the Arabian Sea on one side and the bustling cityscape on the other, any development on this land is bound to offer a unique blend of tranquility and urban vibrancy. Moreover, being part of an upscale neighborhood known for its premium amenities and high-end lifestyle offerings, any project developed here is likely to attract discerning buyers looking for exclusivity and sophistication. The thriving real estate market in Mumbai coupled with the allure of Worli as a desirable address further adds value to this investment opportunity.
K Raheja Worli Mumbai Impact on the Mumbai Real Estate Market: The K Raheja Corp Group’s recent acquisition of a 2.5-acre land parcel in Mumbai Worli is set to make waves in the city’s real estate market. With their history of developing iconic properties and creating sustainable communities, this new project holds immense promise for both investors and future residents. Located in the heart of Mumbai, Worli is a prime area known for its luxury residential developments, commercial hubs, and cultural attractions. The strategic location offers easy access to key areas like Bandra-Kurla Complex and South Mumbai, making it an ideal spot for upscale living and business operations. The addition of K Raheja Corp Group’s development to the landscape will further elevate the status of Worli as a coveted real estate destination. The innovative design concepts and premium amenities that characterize their projects are expected to attract high-end buyers looking for exclusivity and luxury. The impact on the Mumbai real estate market is poised to be significant with this new development by K Raheja Corp Group. As property values rise and demand increases in Worli due to this project, it sets a benchmark for excellence in urban living while contributing towards shaping the city’s skyline for years to come.
Also Read:- Mahindra Lifespace Developers acquires 2 acre land at Whitefield, Bengaluru
FAQ
- What is K Raheja Corp Group planning for the 2.5-acre plot in Mumbai’s Worli area?Ans. K Raheja Corp Group intends to develop the 2.5-acre plot into a high-end residential complex.
- How much revenue is the high-end residential complex expected to generate?Ans. The residential complex is expected to generate over Rs 2,000 crore in revenue.
- How is the profit-sharing arranged between K Raheja Corp and the property owner?Ans. The profit-sharing arrangement gives K Raheja Corp 57% of the revenue, while the property owner receives the remaining 43%.
- What percentage of the revenue will K Raheja Corp receive from the development?Ans. K Raheja Corp will receive 57% of the revenue from the development.
- What responsibilities will K Raheja Corp handle under the terms of the development agreement?Ans. K Raheja Corp will be responsible for planning, designing, securing approvals, construction, branding, and managing sales.
- What is the expected timeframe for K Raheja Corp to complete the residential project?Ans. The project is expected to be completed within a five-year timeframe.
- How large is the development projected to be in terms of carpet area?Ans. The development is projected to have around 3 lakh square feet of carpet area.
- What currently occupies a third of the land parcel planned for development?Ans. About a third of the land parcel is currently occupied by an office building with over 40,000 sq ft of leased space.
- Does any part of the property require authorization from the Maharashtra Housing & Area Development Authority (MHADA)?Ans. Yes, a portion of the property is leasehold and will require approval from MHADA.
- How has the luxury real estate market in India changed over the past two years according to the JLL India report?Ans. According to the JLL India report, the luxury real estate market has seen a more than 1.5-fold increase in the sales value of high-end homes, with sales values reaching Rs 4,319 crore in 2023, up from Rs 2,859 crore in 2022. The number of luxury properties sold also increased, with at least 45 luxury homes sold in 2023, compared to 29 in the previous year.
