Mumbai-based Parinee Developers claims to have shelled out between Rs 4 crore to Rs 4.5 crore for a one-BHK flat and Rs 5 crore to Rs 5.5 crore for a two-and-a-half-BHK in the three-decade-old Bharatiya Bhavan Cooperative Housing Society. Parinee plans to demolish the buildings and set up a high-end residential tower.
In a bonanza for residents of a Khar housing society located at the corner of 17th Road in Khar (west), Mumbai-based Parinee Developers has been buying off their mid-sized flats, paying each family between Rs 4 crore and Rs 5.5 crore. The developer has already bought out 20 of the 37 flats in the society and said it is negotiating with the remaining flat owners. The society comprising six buildings, each ground plus two floors, is spread over an area of 5,570 square yards (over an acre) with ample open spaces and car parking. The one-BHKs have a carpet area of between 580 to 625 sq ft while the two BHKs are between 800 to 900 sq ft in size.
However, there is a word of caution from real estate experts. They warn these huge amounts may send wrong signals in the redevelopment market, unnecessarily create hype and raise expectations of other housing societies in the area.However, Parinee said it is paying this astronomical price only because the society has utilised barely 40% of its floor space index (FSI). “We are finalising the purchase of the remaining 17 flats. Our acquisition cost for all the flats is around Rs 200 crore,’’ said a spokesperson for the developer.
The society had invited sealed bids from various developers and that a Navi Mumbai-based builder, APA, had offered Rs 180 crore to the society. However, the builder subsequently withdrew the offer due to recession and also because of infighting between two groups of flat owners. Some residents thought that APA’s offer was not enough. The fight culminated in a legal battle, Parinee Developer now claims it has helped resolve the issue between the two groups.
A real estate expert has a word of advice for housing society residents, “Dont get greedy. Stick to only prominent developers who have delivered in the past.’’ The expert further said some unknown builders in the past had offered astronomical prices to housing societies, even outbidding the big guns in the industry. These shady builders are just fronts for some politicians who want to roll their black money in real estate. Housing societies should stay miles away from such builders, he warned.
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