Poonawalla scores the most expensive residential property deal in Mumbai history

1. The real estate market is slow and sluggish.
2. There are hardly any buyers out there in the market.
3. Property market is on the verge of crashing.
4. A sprawling seaside mansion in Mumbai sells for INR 750 CR

The above statements are all part of the current news going on in the market and they truly stand for the confusion that prevails in the Indian real estate scenario today.

However let me congratulate Mr. Cyrus Poonawalla for not only buying a world class heritage asset, whose former owners include the US government and an Indian Maharaja, but also to bring in the spark again in the real estate market in the financial capital of the country.

The lesson that we can learn from this is very simple. If you have the right product, no matter the cost, there will always be a buyer. (Note; the product has to be right).

The restrictions on redevelopment and uncertainty over other approvals actually made the owners sell the Lincoln House at Breach Candy exactly INR 100 Cr below the reserve price tag of Rs. 850 Cr. The sprawling three-storey house has being picked up by Mr. Cyrus Poonawalla, chairman of Poonawalla Group that includes biotech company Serum Institute of India.

The 2 acre Grade 3 heritage property at Breach Candy is a luxury and classical masterpiece being just a stone’s throw away from the Mahalaxmi Racecourse. It has a built-up area of around 50,000 sq ft. It has been confirmed that the Poonawalla family would use this charming home as their residence after making a few changes and upkeep.

The US Consulate has already shifted into its new premises in the Bandra-Kurla Complex after which it had  it had on sale two of its South Mumbai properties -Lincoln House and Washington House -for sale in June 2011 with a reserve price of INR 850 crore and INR 350 crore, respectively.

Of these, Washington House at Altamount Road in South Mumbai was bought by realty developer Lodha Group in 2012 for INR 341.82 crore and is being developed by the Lodha Group as Lodha Altamount, a luxury property for the rich and famous.

The Lincoln House transaction along with the Jatia house one which have both happened almost in the same month have brought a relief and a joy to the Mumbai real estate market which has been under a lot of pressure currently due the mediocre sales happening in the last few months.