Rekha Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, has added another expensive property to her portfolio in Mumbai. Let’s examine the key economic aspects of this statement and the implications for its monetary policy.

The Deal 

According to reports, Mrs. Jhunjhunwala recently purchased an apartment in South Mumbai’s upscale Walkeshwar area for Rs. 11.76 crore. Spread over 1,666 square feet, the sea-facing home is located in the over 50-year old Rockside building near Malabar Hill. 

She paid a stamp duty of over Rs. 59 lakh for the registration of the deal. The inclusion of an exclusive car parking space adds further value. While not a large area, the location and sea views would have significantly contributed to the price.

Analyzing the Numbers

At Rs. 11.76 crore for 1,666 sqft, the unit cost works out to be a high Rs. 70,600 per square foot. This is understandable given Walkeshwar’s prime location and amenities. However, the stamp duty contribution of 5% of the circle rate indicates the value quoted is closer to market rates.

With rental yields of 1.5-2% common in luxury South Mumbai housing, the annual rental income from this property could be around Rs. 18-24 lakh. While maintenance costs will be higher, long-term capital appreciation makes it an attractive investment too.

Portfolio Diversification 

This adds to Rekha Jhunjhunwala’s growing Mumbai real estate portfolio, including a BKC commercial project bought last year for Rs. 740 crore. Such diversification across residential and commercial segments, locations and asset classes helps mitigate risks. 

It shows her focus on holding premium real assets in India’s financial capital, seen as a safe store of value. This is in line with her husband’s principles of investing in sectors with strong long-term potential like finance, pharma and now real estate.

Outlook

Luxury Mumbai home prices are increasing by 10% annually as per recent reports, these properties are ready to appreciate once again. As one of the richest women in India, Rekha Jhunjhunwala has the skills and resources to grow her real estate investments the right way. More such initiatives can be expected as it takes the legacy of Jhunjhunwala forward.

In Summary

Rekha Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, has added a sea-facing apartment in South Mumbai’s upscale Walkeshwar area to her real estate portfolio with the purchase of a 1,666 sqft home for Rs. 11.76 crore. The premium property, located in the over 50-year-old Rockside building, is expected to appreciate in value while also providing rental income, demonstrating her strategy of investing in high-quality urban real assets.