Several experts and real estate developers feel that the sale of the famous RK Studio in Chembur may boost the real estate market in Mumbai, particularly in Chembur and its adjoining areas. The current rates for residential property in Chembur hover between Rs. 16-18, 000 per sq. ft. on an average. RK Studio is a prime property covering 2 acres and this translates into 87, 120 sq. ft. in terms of the overall size of the plot. The developable area can be 2 ½ times more of this based on the FSI (floor space index) regulations as per reports. The new development plan for Mumbai has kept the base FSI at 2.5 for residential projects in the suburbs and at 5 for commercial projects.
According to experts, this is a prime plot which is located near several big-ticket infrastructure ventures like the Eastern Freeway and metro railway line. This will naturally boost demand for any residential project that comes up on this plot. In fact, developers can also consider mixed-use projects on this land as per experts. Chembur currently has a growing residential market and the studio is conveniently located, making it suitable for residential and retail projects alike.
The current market in Mumbai has seen prices of land reducing by approximately 25-30% over the last couple of years. Properties are now priced lower than before and the usage of a particular plot will also help in determining its price. CIDCO (City and Industrial Development Corporation) had previously sold a plot spanning 3.3 acres at Nerul in Navi Mumbai for Rs. 181 crore at a price of Rs. 1.33 lakhs per sq. metre. Around 3 years earlier, a similar plot notched up a selling price of Rs. 2.92 lakhs per sq. metre according to reports.
The potential of the RK Studio plot is huge in terms of both residential and commercial development. The studio was developed by Raj Kapoor almost 70 years earlier and the family has finally agreed on selling the property. Chembur is witnessing the development of several premium residential projects including Spenta Alta Vista, Runwal Hills, Ruparel Primero and Runwal Grand among others.