Prices in Mumbai's commercial real estate, already sky high, have more than trebled in just two years with the Mumbai-based Wadhawan group bidding over Rs 5 lakh a square metre for a plot at the Bandra Kurla complex, the new suburban commercial area in central Mumbai.
In January 2006, Reliance Industries Ltd had paid Rs 1.5 lakh a square metre for an international convention-and-exhibition centre covering 75,000 square metres in the same locality.
The Wadhawan group's bid on Monday -- Rs 831 crore for the 16,521 sq metre plot auctioned by the Mumbai Metropolitan Region Development Authority -- will easily top the valuations in not only Mumbai but the whole country.
At this valuation, the bid works out to Rs 45,315 per square foot.
In another bid, the TCG Infrastructure and Hiranandani combine offered Rs 3.70 lakh per square metre for a plot in the same locality. The combine will pay Rs 1,049 crore for the 28,300 square metre plot.
The other company to bid for plots in today's auction by the MMRDA was RIL, which offered Rs 918 crore for a 30,550 square metre plot (over Rs 3 lakh a square metre).
Rajesh Mehta of Raha Realtors believes that the prices quoted would be restricted to the Bandra-Kurla complex only since supply is scarce in the area.
"Until commercial space from the Dharavi Redevelopment hits the market, the Bandra-Kurla complex is going to sell like hot cakes," he said.
The Dharavi project to redevelop Asia's largest slum is expected to add 30 million square feet of commercial space once it is completed.