HomeReal Estate NewsMumbai’s luxury apartments in SoBo see sharp drop in rentals

Mumbai’s luxury apartments in SoBo see sharp drop in rentals

Mumbai’s luxury apartments, the abode of the rich and famous in the business world, have seen a sharp drop in the rentals. A survey of the top 10 luxury buildings shows that the rent expectations of the owners have come down by 10-15 percent with room to negotiate. In most cases, the final cut is as sharp as 20-25 percent.

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By Nisha Poddar  June 5, 2020, 2:03:41 PM IST (Updated)

Mumbai’s luxury apartments in SoBo see sharp drop in rentals
Mumbai’s luxury apartments, the abode of the rich and famous in the business world, have seen a sharp drop in the rentals. A survey of the top 10 luxury buildings shows that the rent expectations of the owners have come down by 10-15 percent with room to negotiate. In most cases, the final cut is as sharp as 20-25 percent.


Rentals of premium buildings in Sobo, a commonly used term for South Mumbai, have dropped substantially due to the inability of the residents to pay high rents due to financial hits because of the COVID-19 crisis. Job cuts of bulge bracket professionals have also added to the slide.

The broker community feels that the big hit has come in the large size apartments (read 3-4 BHK) as their ticket size is too high spanning from Rs 2.5 - 10 lakhs per month depending on the building and its amenities.

Buildings like Kalpataru Horizon in Worli which charged a rent of Rs 4.5 lakh for a three-bedroom in 2008 has the same 3- BHK flat available for Rs 2.75 lakh per month, reduced from Rs 3.25 lakh recently. Planet Godrej where top bank CEO, professionals, and Godrej family members stay saw a sharp drop in 3 BHK rent from Rs 2.7 lakh to Rs 1.75-1.6 lakhs in the last few rental agreements. Star-studded BeauMonde, Ahuja Towers in Prabhadevi, Samudra Mahal where Anil Agarwal, Narayana Murthy own properties have seen a sharp drop too.

Most apartments in the range of Rs 2.5-5 lakhs have seen the owner’s expectations reduced by Rs 50,000 while larger have seen a one lakh reduction to begin negotiations with. Owners are also more flexible to late payments and waivers in the interim to help tenants tide over a financial crisis.

Most landlords want the tenants to stay even at a lower cost to get constant rental cash as once vacated it might be difficult to get an occupant with the ability to pay rent for a luxury apartment.

In the emerging trends, owners prefer long lock-ins and stable companies over high rental values. Those who earlier preferred only a company lease are open to engaging with individuals. Landlords who let out to expatriates only are now open to Indians as well. A lot of it is defined by the demand and supply dynamics and cash conservation, by and large, owners choose to rent than sell at a distressed value. The drop in rentals also shows that overall property rates have dropped and distress sale cannot be ruled out.





















































3-4 BHK Pre-COVID (in Rs/mth)Post-COVID Expectation (in Rs/mth)
Planet Godrej, Mahalaxmi2.6-3.6 lk2-3 lk
Kalpataru Horizon, Worli3.8-4.5 lk3.2-4 lk
Samudra Mahal, Worli6-7 lk5.5-6.5 lk
NCPA, Nariman Point5.5-6.5 lk5-6 lk
Raheja Vivarea, Mahalaxmi3.75-5.5 lk3.2-4.5 lk
Raheja Vivarea, Mahalaxmi4-6.5 lk3.75-5.5 lk
BeauMonde, Prabhadevi4.5-8 lk4-7 lk
Ahuja Towers, Prabhadevi9 lk8 lk
Raheja Legend, Worli12 lk10 lk
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