Mumbai realty rates spiral beyond reach
Many developers have even increased the difference between carpet and built-up areas of the apartment by 40% to 50% at places. Weigh options before buying house
By Nauzer K Bharucha, TNN |
MUMBAI: Hetal Panchal, a 36-year-old graphic designer, wanted to buy a home in Mumbai’s Dahisar. But he shelved his plans after a builder asked for Rs 44 lakh for a 620-square-foot apartment 20 minutes away from Dahisar station. ‘‘It does not fit our budget,’’ he said.
Advertising professional Nagesh Alai, who lives in a 3-BHK apartment in Bandra (West), has been looking for a bigger pad in Pali Hill. ‘‘Prices have been artificially jacked up. Rates in Pali Hill are about Rs 45,000 per square foot,’’ he said.
With residential property prices once again spiralling out of control, apartment sale has slowed down considerably since April, said real estate developers. Last November, when the residential property market was doing well with a robust demand from end users, TOI had warned that builders would face resistance if they increase rates beyond a point. That’s precisely what is happening now.
Many developers have even increased the difference between carpet and built-up areas of the apartment by as much as 40% to 50% at places.
A leading developer and member of Maharashtra Chamber of Housing Industry admitted that sale had plumetted. He blamed it solely on the ‘‘greed’’ of builders. ‘‘Prices have risen too high in the last six months,’’ he said. Thursday’s Bombay High Court order, which struck down the state government’s move to charge a premium for 33% extra FSI in the suburbs, is also expected to further jack up property prices.
This is because builders will have to rush to buy Transfer of Development Rights (TDR), which is controlled by a few traders who are likely to hike the TDR rates. A property consultant said the market had slowed down drastically since April. ‘‘Builders are on a strong footing as they have made a killing last year when the market was booming. They have the capacity to hold on to the prices.’’
Many upcoming premium projects in the western suburbs between Goregaon and Borivali are being quoted between Rs 8,000 to Rs 10,000 a square foot.
‘‘Prices have shot up by almost 100%. During the recession in 2008, rates in Borivali were in the region of Rs 4,500 a square foot. Today, they have almost doubled,’’ he said.
Pravin Doshi, chairman of Mumbai-based real estate developer Acme Group, said the boom period saw 100 inquiries a day. ‘‘Now we get only 60 inquiries of which only half result in firm bookings,’’ he said. ‘‘Prices have gone beyond common man’s reach. However, developers wake up only when the market is on the downturn. But so far this has not happened,’’ he added.
Advertising professional Nagesh Alai, who lives in a 3-BHK apartment in Bandra (West), has been looking for a bigger pad in Pali Hill. ‘‘Prices have been artificially jacked up. Rates in Pali Hill are about Rs 45,000 per square foot,’’ he said.
With residential property prices once again spiralling out of control, apartment sale has slowed down considerably since April, said real estate developers. Last November, when the residential property market was doing well with a robust demand from end users, TOI had warned that builders would face resistance if they increase rates beyond a point. That’s precisely what is happening now.
Many developers have even increased the difference between carpet and built-up areas of the apartment by as much as 40% to 50% at places.
A leading developer and member of Maharashtra Chamber of Housing Industry admitted that sale had plumetted. He blamed it solely on the ‘‘greed’’ of builders. ‘‘Prices have risen too high in the last six months,’’ he said. Thursday’s Bombay High Court order, which struck down the state government’s move to charge a premium for 33% extra FSI in the suburbs, is also expected to further jack up property prices.
This is because builders will have to rush to buy Transfer of Development Rights (TDR), which is controlled by a few traders who are likely to hike the TDR rates. A property consultant said the market had slowed down drastically since April. ‘‘Builders are on a strong footing as they have made a killing last year when the market was booming. They have the capacity to hold on to the prices.’’
Many upcoming premium projects in the western suburbs between Goregaon and Borivali are being quoted between Rs 8,000 to Rs 10,000 a square foot.
‘‘Prices have shot up by almost 100%. During the recession in 2008, rates in Borivali were in the region of Rs 4,500 a square foot. Today, they have almost doubled,’’ he said.
Pravin Doshi, chairman of Mumbai-based real estate developer Acme Group, said the boom period saw 100 inquiries a day. ‘‘Now we get only 60 inquiries of which only half result in firm bookings,’’ he said. ‘‘Prices have gone beyond common man’s reach. However, developers wake up only when the market is on the downturn. But so far this has not happened,’’ he added.
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