Pay 600 Crore for a Two-Acre House in Delhi

Bangalore: When the country is struggling with high property prices, unsold inventories and slump in market situation, real estate prices in Lutyens’ Bungalow Zone (LBZ) or Lutyen’s Delhi is doubling its value. Lutyens’ Delhi is one of the posh and expensive localities in Delhi since high net worth individuals (HNIs) reside here who have raised the margin of property rates in this area.

Recently a bungalow that spans over 2-acre of beautiful landscape in 13 Prithviraj Road has put up for sale for whopping 600 crore ($110 million). Earlier, this bungalow in Lutyens’ Bungalow Zone (LBZ) was taken for lease by the Mexican ambassador, reports Mail Today.

"Properties in areas like Lutyen's Delhi get costlier and costlier by virtue of a huge demand and nearly no supply. It's not investors who vie for bungalows in this extremely elite zone but ministers and business tycoons. What they aim for is an address," said Anuj Puri, chairman and country head, Jones Lang LaSalle India, reports Mail Today.

Earlier, it has been observed that a property on Tughlaq Road that spans over 8000 square yards is valued at 600 crore and the property is at a stone’s through distance from Prime Minister’s residence. Another close-by property on 13 Prithviraj Road that spans over 8543 square yards priced at a whopping 590 crore. Even a small bungalow on Prithviraj Road costs around 300 crore spreads over 3171 square yards. These localities are the most expensive, buying which still continues to be a dream to many people.

According to real estate experts, the property prices in Luytens’ Delhi have rarely seen any price correction.

Moreover, “The number of private houses on sale there is very small and the demand for properties in this zone is perennial. Rajan Mittal’s Rs 156-crore purchase of 38 Amrita Shergill Marg was in keeping with the market price, and not extraordinary when its location and history are concerned. While prices in other areas may have seen some depreciation, the market sentiment is still buoyant for the LBZ,” said Santhosh Kumar, CEO (operations) at Jones Lang LaSalle India, reports Mail Today.