Here’s another article (this one from “The Daily Mail”) talking about sky-rocketing real estate prices in New Delhi.
For reference – when the article talks about a crore, that’s Rs 10,000,000:
Looted in Lutyens: How buyers are parting with Rs 600 crore for a bungalow in Delhi's most desirable locale
By Suhas Munshi
PUBLISHED: 23:45 GMT, 5 March 2013 | UPDATED: 23:45 GMT, 5 March 2013
A two-acre house for Rs 600 crore? That's how hard realty can bite in the rarefied realm of the Capital's Lutyens' Bungalow Zone (LBZ).
The latest entry into the LBZ market is 13 Prithviraj Road, a bungalow formerly leased by the Mexican ambassador and now on sale for a mind-numbing Rs 600 crore or $110 million.
This interest in properties in Lutyens' Zone is in stark contrast to the steady erosion of property prices in other posh areas of South Delhi over the past 18 months.
Here are some of the properties in Delhi's hottest real estate hub, the Lutyens' Bungalow Zone
Real estate experts say that Lutyens' Zone properties are immune to price corrections that have been happening over some time.
Those interested in buying properties in Lutyens' Zone aren't as interested in the area or the amenities it offers as they are in the people who live there.
It doesn't get more exclusive than the LBZ. With just 65 privately owned properties among the thousand-odd that make up the area, a crore is just loose change.
"The number of private houses on sale there is very small and the demand for properties in this zone is perennial. Rajan Mittal's Rs 156-crore purchase of 38 Amrita Shergill Marg was in keeping with the market price, and not extraordinary when its location and history are concerned.
"While prices in other areas may have seen some depreciation, the market sentiment is still buoyant for the LBZ," said Santhosh Kumar, CEO (operations) at Jones Lang LaSalle India.
The Prithviraj Road property gets extra special when one considers that is open on three sides, one of which looks directly into the nearby Lodi Gardens.
Rajan Mittal's winning bid for 38 Amrita Shergill Marg, a residential property on 3,500 square yards, or about 0.723 acres does match up with the Rs 600 crore for 13 Prithviraj Road, which encompases 9,700 square yards.
Mittal's winning bid came after a dispute in the family that owned the property led to it being put up for auction.
Real estate experts say that the lure of staying within other ultra-rich High Net Worth Individuals (HNIs) keeps the asking price at Rs 5 to 6 lakh per square yard in the LBZ, effectively insulating it from the market ups and downs.
LBZ, the Capital's billionaire zone includes Aurangzeb Road, Amrita Shergill Marg and Prithviraj Road.
Compared to the LBZ, prices in other areas have depreciated by around 10 to 15 per cent over the past year or so.
A premium plot in Vasant Vihar, which commanded a price of Rs 12 lakh per square yard around a year ago, now comes for Rs 8 lakh per square yard; a plot in Defence Colony that would a year ago come for Rs 8-9 lakh per square yard now comes at a price tag of Rs 6 lakh per square yard.
"Though there haven't been any closures of deals in LBZ in the past few months, customers seeking to buy property in this area have become louder. The result of this is an upward push in the asking price of these properties," said Rahul Rewal at Mark Estates.
The last big deal in capital, say estate agents, happened in December when a 900-square yard plot in Sunder Nagar was sold for Rs 100 crore.