Real estate major Sunteck Realty has entered into agreements to redevelop two prime projects valued at over Rs 3,000 crore in the affluent areas of Nepean Sea Road in South Mumbai and the upscale Bandstand locality in Bandra West.

Both projects spread over a cumulative land parcel of 1.5 acres are located directly along the seafront and are expected to generate sale potential of over 3 lakh sq ft.

While the company has already developed luxury projects in the plush Bandra suburb of Mumbai, the Nepean Sea Road project marks its foray into South Mumbai, the most expensive property market in the country.

“Our commitment to deliver uber-luxury and ultra-luxury projects remains steadfast with these new projects at Nepean Sea Road and Bandstand, where we will be creating unparalleled landmarks in Mumbai's real estate landscape. The focus on pursuing marquee acquisitions aligns seamlessly with our business development strategy, reinforcing our growth trajectory and leadership position in the industry,” said Kamal Khetan, CMD, Sunteck Realty.

The Nepean Sea Road project will be spread over a land parcel of an acre and the developer has bought out the erstwhile land owner. While some tenants in this property have already vacated, few others are expected to move out soon.

The project on Bandstand will be spread over half an acre sea-facing land parcel and the current residents will also be offered apartments here. The listed company has already developed luxury residential projects in Bandra that have witnessed deals concluded by several prominent personalities from the corporate world, Bollywood, and banking fraternity.

The new projects are expected to add Gross Development Value (GDV) of Rs 3,000 crores to Sunteck Realty’s portfolio. The developer has more than doubled its GDV to Rs 30,100 crore in the current financial year from Rs 12,500 crore in 2021-22.

The company will continue the momentum of aggressive business development and expand the portfolio as one of the major players in the real estate market, Khetan added.

Sunteck Realty’s current portfolio consists of city-centric development around 52.5 million sq ft spread across 32 projects.

Real estate projects involving the redevelopment of old housing societies and rehabilitation are the mainstay of the Mumbai region’s property market, as the land-starved city and its peripheral areas have few vacant land parcels.

In July, the government of Maharashtra said that a member of a housing society that undergoes redevelopment need not pay stamp duty on the allotted permanent accommodation as part of the project.

Following this, the member of the housing society undergoing redevelopment is expected to pay only Rs 100 as stamp duty, while the principal agreement between the development and the housing society will be charged as per the conveyance.

The state government’s decision is expected to help push the redevelopment of many old and dilapidated housing societies across key cities in the state.

The Mumbai property market has continued its record-setting spree to surpass all benchmarks and scale a new all-time high in 2023 with its best annual performance ever, despite higher interest rates and rising property prices. Luxury, premium, and mid-income segment properties are the ones driving this performance.

The country’s commercial capital has achieved a new peak in terms of both property registration and the state exchequer’s revenue collection through stamp duty charges.