Pankaj Kapoor, the managing director of Liases Foras, a real estate analytics firm in Mumbai, met with me at his office in a new building at Andheri East. Columns of large box files about Mumbai’s land prices teetered in the conference room. Although it was evening on a Saturday, the place was occupied with a row of staff who stared at their screens. Kapoor sipped on a cup of light tea and talked about real estate in Mumbai, NAINA, and what exactly set off land prices in the city (hint: it wasn’t demand).
When did you first start seeing the wealth effects of land?
You know, all this started in 2005. The seeds of the exuberance were put in when realty was open for foreign direct investment. That was the first time the government came forward and started land bidding. Mill land that belonged to the National Textile Corporation was sold, and the price of that land was being discovered. The NTC mill land deals, the MMRDA deals, and similar deals across India set the prices. I remember a time when a couple of land deals in Lower Parel happened. My own estimations for Lower Parel at that time was Rs 6000 a square foot. Land was sold, if you look, for over Rs 10,000.