The rise has been sudden both at the premium end of the market and the deep suburbs, suggesting the return of speculators and investors to the property market.
Mumbai’s real estate prices have begun to run amok once again, suggesting that another realty bubble is in the making. In a quick reversal from last year’s recessionary trends, residential property prices which had dropped by almost 35% in some areas have risen sharply in the last nine months and are now close to their earlier peaks of 2007-08.
The rise has been sudden both at the premium end of the market and the deep suburbs, suggesting the return of speculators and investors to the property market.
A three bedroom-hall-kitchen (BHK) apartment at upmarket Warden Road was recently sold at Rs93,000 a sq ft (built up rate) when it was quoting at just Rs 50,000 in early 2009. Apartments (mostly owned by investors) in Beaumonde, a building by Sheth Developers at Prabhadevi, are now quoted at approximately Rs50,000 a sq ft as against Rs35,000 and above in 2008. Apartments at Planet Godrej, developed by Godrej Properties at
Mahalaxmi, are being quoted at approximately Rs27,000 a sq ft, close to the peak rate of Rs30,000 a sq ft quoted in 2008. Prices in 2008-2009 had dropped to almost Rs16,000 a sq ft.
Raheja Vivaria at Mahalaxmi is now quoted at Rs26,000 a sq ft, close to its high of Rs30,000 a sq ft in 2008. It had dropped to Rs16,000 a sq ft at the trough earlier in 2009. Similar was the case with Ashoka Towers at Lalbaug which is now quoting Rs 25,000 a sq ft. Prices at Cuffe Parade, Nariman Point and Altamount Road, which had dropped to almost Rs40,000 a sq ft, are back to their earlier rates between Rs50,000 and Rs70,000
In the western suburbs, flats in Kandivli and Malad have touched Rs7,000-Rs8,200 a sq ft, a huge jump from the Rs 5,000 a sq ft quoted in January 2009.
At Andheri, rates are between Rs7,200 a sq ft (somewhere at Chandivali, Powai) to Rs14,000 a sq ft in premium buildings. Earlier, rates were around Rs5,000-8,000 a sq ft. Lodha Group, which had not raised prices during recession, is now quoting Rs7,500 a sq ft in Lodha Aqua, a project at Mira Road.
Pre-recession, flats were quoted at Rs6,250 a sq ft.
Sheth Developers have jacked up prices at Ivy Towers at Goregaon to Rs9,000 a sq ft from Rs7,500 a sq ft. Property experts have attributed the sharp rise to improved market sentiments and shortage of ready flats, with developers either cancelling projects or slowing down construction.
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