Grappling with a slowdown, the lucrative suburban micro property market beyond Bandra seems to be on the road to correction.
Grappling with a slowdown, the lucrative suburban micro property market beyond Bandra seems to be on the road to correction.
Many small developers in this area are beginning to sell their property at almost 15% discount to the ongoing market value of Rs20,000 to Rs25,000 a sq ft.
Real estate brokers said that in the last one month itself, three properties at Bandra (W) were sold between Rs13,000 and Rs16,000 per sq ft. A new apartment in the near-complete Satra Residency, a residential building on 14th A road, Khar, was sold at
Rs16,000/sq ft for a 3,500 sq ft flat.
Said Jayprakash Bhatija, a realty broker, “I am not surprised if flat prices at Bandra have touched Rs16,000 a sq ft. In the past few months, I have done deals at Rs18,000 a sq ft. In fact, I believe if the interest rates continue to be high, flat prices in areas between Santa cruz to Bandra could touch Rs14,000 a sq ft.’’
Vibhoo Mehra of Mumbai Properties sold an investor-held flat on 12th road, Khar, for Rs16,000 a sq ft. Mehra said, “In the past three months or so, I have sold three flats for approximately Rs14,000 a sq ft. While flat prices in premium areas like Pali Hill, Carter Road have not been affected, the rates are correcting in areas like 17th and 18th road, Khar. The reason obviously is high property prices and interest rates.’’
Incidentally, Mehra has put up for sale three flats in Hill Crest, a building constructed using Transfer of Development Rights on 16th road, Bandra, for Rs12,500 a sq ft. Similarly, properties located along the railway corridor are going at rates up to Rs16,000 a sq ft.
But while some developers were selling at a lower market rate, some brokers advocated caution. Said a Santa cruz-based broker, “Most of these buildings have a higher built-up to carpet ratio. In the flat in a premium building in Khar, the usable space is only 1,800 sq ft of the total flat area of 3,500 sq ft. It means the developer has charged for almost 70 per cent of space he has utilised in providing other amenities like flower bed, storage space etc. One cannot have this deal has a benchmark for all sales.’’
According to property consultants, small developers are scrounging for cover. “With the market stagnant and correction of rates in other cities, some small developers are seeking help of big developers in completing their project. Not many can afford the high interest rates demanded by banks etc,’’ said an analyst, pointing out an example of a small developer, pushed to a corner on account of mounting payables for construction material, offering its project at Juhu-Versova at about 35% discount to the current
market price.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}