Dixon’s Sunil Vachani buys a bungalow in Lutyens’ Delhi for Rs 170 crore – ET RealEstate

NEW DELHI: Sunil Vachani, chairman and managing director of Dixon Technologies, has bought a sprawling 1,250 square yard bungalow in Lutyens’ Delhi for around Rs 170 crore in one of the biggest residential transactions since the lockdown, two people aware of the deal said.

At Rs 1.5 lakh per square foot, the deal is also one of the costliest in the county in the recent times.

“The recent transaction in Golf Links exceeded the previous price benchmark by about 15% and a transaction of this nature reiterates the high desirability quotient of locales in Lutyens’ Bungalow Zone,” said Shveta Jain, managing director of real estate service firm Savills India.

“This transaction has also crossed previous benchmarks as there is paucity of supply as other similar sized plots are situated on the main road of Golf Links whereas this bungalow sits in an internal crescent overlooking a park,” said Jain who heads the residential services of her firm.

Sources said there was no transaction advisor involved and Vachani directly bought the bungalow from its previous owner, a former naval officer.

Vachani did not respond to emailed queries till press time Thursday.

Dixon Technologies, a leading electronics manufacturing service provider, has seen its stock price more than triple over the last one year, closing at Rs 15,732 on Thursday against Rs 4,230 on January 7, 2020. The promoter family holds nearly 36% stake in the company.

The property deal comes at a time when average asking prices for properties are down 10-15%, and in some cases even 25-50%, due to the impact of the pandemic and lockdowns. Yet, Vachani seems to have paid a significant premium for the bungalow that bears the number 17 in Golf Links.

A 1,250 square yard property at the same location was sold at Rs 120 crore before the lockdown, a dealer said.

Another broker active in the area, however, said, “Most of the 1,250 square yard plots in Golf Links are road facing where there is a lot of traffic. Only a few one are park facing, which are sold at over Rs 150 crore.”

Spread over 28 sq km, Lutyens’ Bungalow Zone has about 3,000 bungalows meant for top ministers, judges and government officials and about 600 homes owned by some of India’s wealthiest people.

This zone was developed by late British architect Edwin Lutyens between 1912 and 1930.

There have been a bunch of high-value transactions in LBZ, considered India’s most expensive address. Recently, Adani Properties of Adani Group had acquired a bungalow there.

“We are witnessing an upward trend in Lutyens Delhi for well marketable property where owners are in India to conclude the deal,” said Rohit Chopra, founder of Southdelhiprime.com, a digital real estate advisory and transaction company. “More such deals are expected to close in coming days,” he said.

Over the past decade and a half, Lutyens Delhi has become home to industrialist Naveen Jindal, steel tycoon LN Mittal, Bharti Group founder Sunil Mittal, Paytm’s Vijay Shekhar, and Yes Bank former CEO Rana Kapoor.

Experts said scarcity of properties available for outright sale in Lutyens Bungalow Zone, coupled with increasing demand, will ensure that prices in the area remain extremely high even though rates fluctuate in other parts of Delhi.

Dixon Technologies manufactures consumer durables, lighting and mobile phones for several leading brands.

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Delhi: Over 20 bungalows in Lutyens’ zone up for sale – ET RealEstate

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NEW DELHI: Owning a private bungalow in Delhi’s Lutyens’ Bungalow Zone has been a status symbol for decades and has attracted the rich and the famous from across the country.

This extremely niche area has remained immune to the vagaries of the real estate sector, and yet Covid-19 has not left this leafy neighbourhood untouched either.

In an unprecedented development, more than 20 bungalows in LBZ are up for sale, their prices ranging from Rs 75 crore to Rs 170 crore, depending on the plot size and location. Portals that only deal in high-end, luxury properties have listed several from this area in the last couple of months rather than a couple they used to earlier.

From a 7,500-sq ft bungalow near Khan Market (Rs 150 crore) and an equally spacious bungalow on Hailey Road (Rs 170 crore) to 8,000-10,000-sq ft residences in Sunder Nagar costing Rs 75-90 crore, the house’s distance from Rajpath determines the price. Comparatively, three-bedroom apartments in Chanakyapuri‘s diplomatic zone are available for Rs 20-40 crore.

“I have been in real estate since 1997 and have sold many properties, but never in my experience have I got a stock of 12 properties in LBZ. Usually, the number in the inventory is one or two, at most three,” said Rohit Chopra, founder of real estate consultancy firm Southdelhiprime.com.

Developed by Edwin Landseer Lutyens, the British architect of New Delhi, this exclusive ‘zone’ was originally spread across 19.1 sq km. There are strict height, floor-area-ratio and reconstruction norms for this heritage zone to protect its low skyline. There are around 3,000 bungalows in the area, which mostly house top ministers, judges and government officials. The number of privately held bungalows and homes in LBZ is around 600. Apart from LBZ, spacious properties in areas adjacent to the zone also command high prices.
Delhi: Over 20 bungalows in Lutyens' zone up for sale“Being the heart of Delhi, LBZ commands the highest real estate pricing not only in India but globally,” said Shalin Raina, managing director (residential services), Cushman and Wakefield, a global real estate firm. “Sprawling residences, manicured gardens, close proximity to key destinations in the city and the snob value make LBZ one of the most coveted residential areas of India.”

Raina said that despite some flexibility in price negotiations, “we do not see a much downward trend in the pricing since these are boutique and sought-after properties in the country”. She added, “The velocity of sales may remain a bit slow for a couple of months, but high-end boutique properties will remain in demand owing to the large number of high net worth individuals in India.”

Chopra said that most of the sellers are in the 65-80 age bracket and have realised the importance of succession planning, perhaps triggered by the pandemic. He revealed that only those with a certain level of wealth opt for an LBZ property and it’s for the status of the address rather than the space. “Only when you are very rich do you buy a two-seater Ferrari,” he explained. “For the sellers who have listed, it was perhaps Covid-19 that made them realise that they should not sit on assets but monetise them.”

Ramesh Menon, director, Certes Realty, said that while there was a lot of inventory now, absorption was not going to be easy. “Most of these properties need redevelopment, which will not happen and outright purchase of such properties is often difficult. There has to be a compelling reason for someone to get into such a big property deal at present,” he suggested.

Menon also said, “When cash flows is happening and the going is good, one never looks at the value of a house. But now some people might wonder why they are living in a property worth Rs 250 crore. This amount would yield 10-12% interest in other sector, but not in property.” He added, “However, I wouldn’t say this is a sign of a weakening market as high-end deals were finalised in recent months, even if not in LBZ but elsewhere in south Delhi.”

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