India's most expensive boulevard

Check out India’s most expensive ZIP codes. From the old world charm of Kolkata’s Alipore Road to Delhi’s hallowed Lutyens’ zone and Mumbai’s shore-hugging Napean Sea Road — it’s not really a surprise that these represent India’s most exclusive and most expensive addresses.

But when SundayET commissioned global real estate consultancy Cushman & Wakefield (C&W) with the task of tracking the richest residential streets in the top six Indian cities, what really flummoxed us were the mind blowing valuations that emerged.

So while the aggregate value of properties on Delhi’s creme-de-la-creme Amrita Shergill Marg at Rs 7,236 crore didn’t really raise eyebrows, the financial capital’s Napean Sea Road at almost double with Rs 12,375 crore did somewhat. Experts put this down to a large number of new high-end constructions, which have also helped Napean Sea Road to edge past supply in Mumbai’s other premium areas like Malabar Hill, Altamount Road, Breach Candy and Walkeshwar where very limited new construction is taking place.

But hold your breath. The biggest surprise was Hyderabad’s Banjara Hills which leads the pack at a whopping Rs 96,000 crore. The reason behind this surprise winner appears again to be a lot of new construction and mixed commercial and residential land use.

Moving east, the properties at Alipore Road were valued at a much conservative Rs 630 crore — Kolkata reflecting a similar non-availability of land for fresh transaction — sale or resale — as Delhi. In Bangalore, Lavelle Road emerged tops with a total value of Rs 202.5 crore, while the total value of properties at Chennai’s Boat Club were pegged at Rs 94.5 crore.

The methodology for the C&W study took into account only the premium apartment complexes and independent houses in Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad.

The most expensive location in each city was identified based on the fact that independent units of the identified location would be of one of the highest values within the city. The sample size, however, is not representative of the total stock or supply of that area and is restricted to the most premium construction in a single location.

And what we found was that it’s not just the wide open spaces, dense green foliage or stately architecture that set the rich streets apart from all others.

It’s the nameplates on the mahogany engraved gates that make them the most sought after addresses in the country. From the Mittals to the Birlas, they all live here.

For Amrita Shergill Marg, the price range for properties varied between Rs 3 lakh/sq.yd to Rs 3.50 lakh/sq.yd. The elite neighbourhood with the residents such as Bharti honcho Sunil Mittal and Sanjay Singhal of Bhushan Steel, who bought his property in a record deal of Rs 137 cr last year, is one of the most sought after addresses in the country.

Located in the Lutyens Bungalow Zone (LBZ), the street comprises of colonial bungalows which are reflective of the British Raj in India. There are just 46 houses each approximately measuring 4840 sq.yds. Mumbai’s Napean Sea Road has been rising in its attractiveness over the past few years. The price has now been pegged at Rs 50,000/sq ft depending heavily on the type of building.

An interesting trend that emerged out of the study was that the uber rich in different cities lived differently and had a different view about ‘exclusivity’. So while in Delhi it is not hip to live in an apartment, in Mumbai’s rich street many luxury apartments had come up in recent years.

“Lifestyle always has something to do with the city that one lives in. So while a top corporate honcho or an industrialist in Delhi may like to own a posh bungalow or a farm house spread over a few acres, in Mumbai an expansive luxury apartment or penthouse facing the sea can be the choicest location.

In Mumbai, higher floors are more in demand whereas in Delhi preferred options are still bungalows or lower floors and they attract better prices as preferential location charges,” says Amitabh Bhattacharya, vice president, Omaxe, a real estate developer.

In Kolkata — the study found that old world charm is what makes Alipore the costliest residential boulevard post Independence. Residences of top business families such as the Goenkas, Singhanias, Jalans, Apeejay, the Mittals of Ispat Industries and the Bangurs share space on this road. There are a few prestigious apartment complexes too, which mostly belong to top corporate houses. In many cases, the profile of occupants at the apartments are either well known intellectuals or top brass in companies.

The price range in this area is at Rs 7,000/sq ft and there are approximately 300 houses ranging from 2,500 sq ft to 3,000 sq ft. Industry analysts feel that the lack of availability of large tracts of land makes Alipore such an expensive residential area.

“There has been no vacant land available in this area for a long time and the only building activity is of old business families renovating their old palatial homes. Besides, there are large properties owned by the Kolkata Port Trust, Railways and the Army. Other landmark properties include the National Library, Taj Bengal hotel and the Kolkata zoo,” industry sources told SundayET.

In Bangalore, Lavelle Road plays host to high profile residents and has become a status symbol. Bangalore Club - one of the most prestigious clubs in the city is located in the region – further adding to the wow factor.

About 50 premium apartments are located on Lavelle road measuring approximately 2000 - 4000 sq. ft. The price range for these apartments varies from Rs 12,000 to 15,000/sq.ft. In Chennai’s Boat Club area, the average current property value has been estimated at Rs 13,500/sq ft with an average area of 2000/sq ft/ apartment.

The survey further finds that excellent infrastructure and well-planned and organised development has led to Banjara Hills getting the top slot in Hyderabad. These are mostly plotted developments leading into independent bungalows.

There is also a good mix of commercial, retail and residential as opposed to earlier when the region had only plotted developments being predominantly residential. Over time, the location has come to gain significance as a destination for retail and commercial developments as well. The price is approximately Rs 60,000 per sq yard with an average area of 800 sq yards as the plot size.

“High-end posh streets such as Amrita Shergill Marg, Aurangzeb Road, Banjara Hills and Napean Sea Road have become top-end premium residential living areas for India’s select few. The prices of these premium locations are always moving upwards due to the limited availability.

The corporate glitterati generally tend to look for a piece of land or apartments in these areas as that would catapult them into an almost “Z” category residential zone,” says Mr Bhattacharya. And now with more and more NRIs, PIOs and even expats looking for prime addresses in India, Amrita Shergill Marg and Napean Sea Road are set to join the big league of top streets globally. Who needs Kensington, Beverley Hills or Upper East Side?

Via Economic Times