Mumbai: Venture capital firm Indiareit Fund Advisors Pvt. Ltd, which is controlled by the Piramal Group, plans to invest in a housing project along Mumbai’s eastern coast, seeking to overcome land shortage and rising prices in the city centre.
Mumbai-based Indiareit will invest Rs150 crore in Samira Habitats, a company that is developing luxury villas and apartments in Alibag, on the mainland across from the Mumbai island, Indiareit managing director Ramesh Jogani said on Tuesday.
“It will be a way out of Mumbai’s congested infrastructure,” Jogani said. “The projects will make Alibag a base of primary homes, instead of holiday and weekend homes as in the past.”
Residential prices in South Mumbai have more than doubled in the past three years, as India’s booming economy bolstered the spending power of local residents and prompted overseas companies to bring in workers. Mumbai also has the second priciest offices in the world after London, according to CB Richard Ellis Group Inc.’s semi-annual Global Market Rents survey.
The state government is setting up three special economic zones and a new port at Rewas, across from Mumbai’s harbour. It also plans to connect the area with Mumbai by constructing a 21km trans-harbour bridge.
Houses in the 400 acre Samira Habitats project will cost between Rs50 lakh and Rs10 crore when they go on sale at the end of next year, Jogani said.
Alibag, located about 34km south of Mumbai, is a popular weekend getaway among the city’s affluent residents. The Piramal Group controls companies including Nicholas India Piramal Ltd, the nation’s seventh biggest drugmaker by market value.