K Raheja Corp has entered into a development agreement with Cinevista Ltd to develop a land area in a Mumbai suburb where the real estate developer plans to set up a luxury housing project. K Raheja Corp’s share of the market value of the project is ₹272 crore while the owner’s share is ₹78.4 crore.

Cinevista is the owner of the property and development will be undertaken by K Raheja Corp. The total plot area is 15,817.5 square metres and the permissible built-up area is 52,117 square metres of which the developer’s share is 75.5 per cent and the owner’s share is 24.5 per cent, according to the registration documents made available by data analytic platform CRE Matrix.

Also read: Godrej Properties to buy 7.4-acre land parcel in Kolkata for luxury housing project

The total available floor space index on the plot area is 47,411 square metres. The land is located in the eastern suburb of Kurla in Mumbai. Sources said that the project is still in the planning stages.

Boom in luxury housing

Luxury housing is currently seeing a boom across India, especially in Mumbai, after a period of stagnation.

Recently, K Raheja Corp announced ‘Maestro,’ an ultra-luxury residential project, in the Juhu area, construction on it having started last month. It has around 1 lakh square feet of saleable area. The developer acquired the 1-acre land parcel in May 2022 from BR Chopra’s daughter-in-law Renu Chopra for ₹182.8 crore. The average rates at the apartments are around ₹85,000/ sq. ft. It has another luxury project coming up in Juhu.

The demand for luxury projects can be gauged from the fact that the developer’s project in Mahalakshmi, ‘Raheja Modern Vivarea’, offering large spacious residences of three and four bedrooms with a starting ticket size of ₹13 crore, saw a record, pre-formal launch sales revenue of ₹1,100 crore, in under 90 days in the March quarter.

DLF Ltd also saw unprecedented sales of over ₹8,000 crore at its ‘Arbour’ project in Gurgaon during the pre-launch phase in the March quarter. The project offers four-bedroom residences at a starting price of ₹7.5 crore.

“Luxury homes are driving housing sales across most cities since the first Covid-19 wave,” Anuj Puri, Chairman, ANAROCK Group said recently. He pointed that demand for more space was driving luxury home sales.

Affluent buyers are also looking for houses with more amenities and those that are sustainable, all of which come at a price.