Mumbai Real Estate: Never pay for a view because it won’t last – Moneycontrol

About 10 years ago, a family relative purchased an apartment in a premium under-construction skyscraper project called Lodha Bellissimo in Mumbai, that would overlook the 210-acre Mahalaxmi Racecourse. The views were poised to be spectacular with little possibility of something coming up in front of it. Unfortunately for the buyers of Bellissimo, an even taller skyscraper called Minerva was soon launched. It would largely obstruct the views of the serene and green racecourse for Bellissimo residents. Buyers of the latter project would then be having sparkling views of one of the few green and open spaces in Mumbai.

New address proposed for the racecourse

I recalled this instance after reading a story that the municipal corporation of Mumbai (BMC) was now planning to shift the racecourse itself from Mahalaxmi to the eastern suburb of Mulund. If this happens – neither Minerva nor Bellissimo residents would be able to cherish the green views of the racecourse.

Also Read | Mumbai’s middle-class: Your new home size may be smaller than that of a slum dweller

In principle, the BMC is well within its rights to do so, as the land is owned by the municipal corporation and the state government. In 1914, the BMC had leased out the racecourse land to Royal Western India Turf Club for 99 years. On expiry of the lease – a resolution was passed for converting the racecourse land into a theme park. However, nothing meaningful moved thereafter until this week.

Unclear Rationale

I must concede that the rationale behind this is plan is tough to understand. If the problem is a racecourse, that occupies a large land base and caters to a tiny fraction of a population, then why build it elsewhere? And if the desire is to build a large theme park – it can be created at the venue shortlisted for the new racecourse. Besides – is there any assurance that the land planned for the theme park is not thereafter used for any other purpose? Is the historical record encouraging enough to suggest that the municipal corporation will be able to guard the land from being encroached? In my personal view,  the municipal corporation will be forced to recognise that it is a nutty plan which should never even have been deliberated.

Lesson for Homebuyers

But there is a deeper lesson for a home buyer in Mumbai through this episode. And that lesson is simple: Never ever buy an apartment with view as a primary factor. The lure is powerful. The spectacular view of Mahalaxmi Racecourse alone has been able to support apartment sales of approximately INR 30,000 crore across multiple projects. I don’t blame developers for using view as a differentiating factor because in an era where most projects are commoditized – it is one of the features that can fetch a steep pricing premium. The view may be a sea-view, golf-course view, creek view, forest-view etc.

Home buyers should not be sucked into it. And if they are sucked into it – they should avoid paying a premium for it. In an age of ever-rising FSI, the odds of a taller building coming up around you is high. The taller building will then block the view. And even hurt the prices of the shorter buildings. The only situation where a pricing premium is warranted is when there is negligible scope of an obstruction in front of you. This means paying premium for a sea-facing apartment, not a sea-view apartment. (Although one may argue that the upcoming coastal road may even hurt that). For everyone else – apartments must be purchased for simple old-fashioned reasons like the apartment size, layout, amenities, connectivity etc.

Going by the story of the Mahalaxmi Racecourse – the challenge to the view is not just another builder who can ruin it, but also the government agencies who can make it disappear.