Uday Kotak in awe after New York commercial property price cut puts rate at half of Mumbai's BKC
BKC. In a post on social media platform X (formerly known as Twitter) on March 17, Kotak responded to user Nilesh Shah's (@NileshShah68) post converting the USD real estate sale to Indian Rupees. "New York commercial office building going at ₹~ 16000 per Sq Ft." wrote Shah.
To this, Kotak responded with: “Wow Nilesh. That's less than half the rate at Mumbai's BKC!" In a post on March 16, X user Triple Net Investor (@TripleNetInvest) wrote that a Manhattan office tower had sold at a "shocking" 70 percent discount compared to its last sale. "The 778k sq ft tower at 222 Broadway sold for $150 million.
The building last sold for $500 million back in 2014," they informed. The user also noted the significance of this property rate cut. "Even NYC is seeing massive distress and destruction in values for prime commercial real estate office buildings," they added.
The Knight Frank Global House Price Index for the third quarter of 2023 ranked India 14th globally, up 18 positions from the previous year, with an average 5.9 percent increase in house prices over 12 months. Further, as per a housing prices index maintained by Srini Raju Centre for IT and the Networked Economy at the Indian School of Business, the 12-month period ended September 2023 saw the biggest annual jump across one-BHK, two-BHK and three-BHK houses over the last six years. The biggest rise, of 7.3 percent, was in the two-BHK segment.
Meanwhile, property consulting firm Anarock found that the share of affordable housing (less than ₹40 lakh) in new supplies has been shrinking in the top seven cities, from 24 percent in Q3FY21 to 18 percent in Q3FY23. In Q3FY19, this segment accounted for 41 percent. This drop is driven by several factors, including higher land
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