Saffronart: The online matchmaker for real estate dreamers

A piece of dirt in this town is worth its weight in gold, so it's no wonder that the luxury end of the property market in Mumbai is seeing a lot of activity. But the process, for buyers and sellers alike, is less glamorous than one would expect when asked to drop half a lakh of rupees on a single square foot in South Mumbai. 

But now that Saffronart, India's reputed online auction house known for its activity in the art market, has jumped into the property fray, this sector is about to move into the 21st century. 

In partnership with real estate giant Cushman & Wakefield, it launched Prime Properties this year, to source, market and sell luxury residences around India via Saffronart's headquarters in Mumbai and offices in New York and London. Initially the drive will be through private sales, but subsequently online auctions as well. 

"Right now in India, the real estate market is very local. For premium properties though, we feel there's a market that is national and global," says Nish Bhutani, chief operating officer of Saffronart. 

Stanford educated, the erudite Mumbai exec believes that real estate was the logical next category for his company to venture into. "We’ve been in the business of high value, unique, premium luxury objects in terms of art and jewelery, for some time."

Real estate seemed a natural extension. "Real estate in India is not marketed in the best possible way. If you’re sitting in New Delhi would you have heard of a holiday development in Rishikesh? Of if you're in New York would you know about Alibaug, just outside Mumbai? This helps reach the right target audience geographically. In India typically, a luxury villa is often marketed in the same way as a basic apartment. We felt this had to be changed," explains Bhutani.

One reason for Saffronart's sector play is its long-term growth potential. Given increased urbanization and a strengthening economy, Cushman & Wakefield predicts a real estate upswing in India in the next few years. According to a slick catalog brought out by Prime Properties, established markets like Mumbai are witnessing satellite town development. Indeed, Mumbai is the only Indian city to have the same or higher sale value for residences compared to commercial spaces, especially in areas like Nariman Point, Cuffe Parade, Napeansea Road, Lower Parel and Worli. In the past 12 months, home property prices have gained anywhere from 4 percent to 25 percent. 

Prime Properties hopes to capitalize on this trend, and also bring a degree of sophistication to flogging high-end homes. "At an aesthetic level, it can bring excitement to real estate marketing, and take it to a quality that hasn't existed. The first time you do something, you have no idea what to expect," says Bhutani, of the venture. But he's clearly pleased with the response, which he says has been "superb."

Subhir Shah, a partner in Golden Homeland, a real estate brokerage with a 25-year track record in Mumbai, agrees. "They are putting premium properties in a positive perspective," he explains. "It's a good market strategy and gives one more avenue to access the target market. Broadly speaking, something like this should do well, but I am not sure how quickly they will achieve the results they want." 

That target market includes, but is not limited to, Saffronart's 15,000 person customer base of high net worth individuals. Comprising mainly professionals and entrepreneurs who have the resources to purchase properties, but perhaps not the right channels through which to go about doing so, Saffronart is hoping to make the buying process more transparent and straightforward. 

That's a lofty goal in a town like Mumbai, which has a notoriously fragmented real estate market in which reliable data is hard to come by. If you’re a home buyer, you will likely have to work with multiple brokers to get a complete picture of what’s out there in terms of supply. No broker would be able to tell you how many flats are for sale across the city in a given price range. Price per square foot in tiny south Mumbai areas like Malabar Hill, Napeansea Road and Cuffe Parade ranges from Rs 15,000 to Rs 45,000, while Colaba starts at Rs 18,000. In Worli the range is anywhere from Rs 10,000 to Rs 35,000, while up and coming Parel starts at Rs 6,500. And then there are the freak cases people love to talk about -- like the Rs 100,000 per square foot paid for an apartment in Worli’s Samudhra Mahal, or Rs 90,000 per square foot in Breach Candy's Sea Face Park building. In fact, Prime Properties has listed a ground floor 2,700 square foot three bedroom apartment in Sea Face Park for Rs 22 crores, or US$5 million, that has not yet sold.

The Prime Properties catalog by design director Alka Samant, includes high quality photography, accompanying data on the units, perspective on the property market in India and guidelines for non-resident Indians and foreign nationals, and feels like a breath of fresh air in an otherwise opaque market. "We will take on properties that are one to two crores and up, but our criteria for selecting properties has less to do with price and more to do with location, aesthetics, interiors and a level of uniqueness," says Bhutani. 

Prime Properties partners with the home furnishings company Good Earth to do up the interiors of empty apartments in their Indo-chic, Indo-global style, or, if a home is already furnished, to add a few finishing touches, so each property looks appealing. Beenu Bawa, marketing head at Good Earth, says "It's a nice channel for us to offer our styling services. They approached us, and we thought it was a great idea." 

There will be a catalog once every quarter and the company hopes to auction homes online, by early next year. The question on everyone's minds is whether the Indian consumer is even ready for that. The point is, at least they know where to look now.   

To order a catalogue, list a property or arrange a viewing email properties@saffronart.com or visit Saffronart online for all details. These are their properties for sale, currently.