Mumbai realty prices begin ascent
Realtors have hiked prices of Mumbai developments by 5-15%, depending upon the location.
Realtors have hiked prices of Mumbai developments by 5-15%, depending upon the location. Though prices across India are still flat, Mumbai’s realty has surely started heading north.
For example, Mumbai-based real estate company, Modern India Ltd has finalised the sale of 4 residential flats, sized 2,100 sq ft each at its high-end Belvedere Court, Mahalaxmi, at a price of Rs 25,000 per sq ft.
Recent research reports (Market Beat) show that comparable flats (Vivarea, Planet Godrej) in the vicinity fetched between Rs 19,400 and Rs 20,000 per sq ft, which clearly indicates a price rise of 25% in that area.
Though prices had fallen only 30-35% in Mumbai and its suburbs, they are again moving up and still demand is pouring in, which is coming as a boon for developers.
An analyst from a domestic brokerage, requesting anonymity, told DNA, “When the markets first rallied up and two successive QIP’s became successful, pries rose by 10-15% in areas like Lower Parel and Worli. Now, prices in places like Bandra, where supply short fall is prevalent, have shot up by 30%.”
Shailesh Kanani, research analyst with Angel Broking, said, “Prices in Mumbai are surely up by 15-20%. Sentiments have changed; housing loans are coming at cheaper interest, developers’ liquidity position is better and buyers have started coming out. Now it has to be seen whether it is the pent up demand or investors coming in.”
Ashutosh Limaye, associate director-strategic consulting, Jones Lang LaSalle Meghraj, said, “Prices haven’t moved up generally, but in Mumbai they have in places like Bandra, Walkeshwar, Malabar Hill. Developers are now portraying a positive curve and we do not see prices falling further from here.”
Limaye expects prices will remain flat for a year or so. Vikas Oberoi, MD, Oberoi
Constructions, which plans to invest Rs 600-700 crore for developing 5-6 million sq ft said, “There is definitely a rise of 10-15% in prices as there is strong demand in various brackets and people are ready to pay the right price.”
Oberoi Constructions has mopped up Rs 400 crore in last two months from sales of its Jogeshwari project.
Research analysts Saurabh Kumar and Gunjan Pithyani of JP Morgan said in a research report on August 6, “Residential prices, after witnessing a sharp downward trend (down 25%-35% from peak) have stopped falling and have shown signs of increase (5%) in the past few weeks.
Going ahead, we expect demand to remain firm and further pick up strongly in 4QCY09 as we go into the festive season (Diwali is traditionally a home buying season in India) and developers continue to offer projects at attractive price points.”
For example, Mumbai-based real estate company, Modern India Ltd has finalised the sale of 4 residential flats, sized 2,100 sq ft each at its high-end Belvedere Court, Mahalaxmi, at a price of Rs 25,000 per sq ft.
Recent research reports (Market Beat) show that comparable flats (Vivarea, Planet Godrej) in the vicinity fetched between Rs 19,400 and Rs 20,000 per sq ft, which clearly indicates a price rise of 25% in that area.
Though prices had fallen only 30-35% in Mumbai and its suburbs, they are again moving up and still demand is pouring in, which is coming as a boon for developers.
An analyst from a domestic brokerage, requesting anonymity, told DNA, “When the markets first rallied up and two successive QIP’s became successful, pries rose by 10-15% in areas like Lower Parel and Worli. Now, prices in places like Bandra, where supply short fall is prevalent, have shot up by 30%.”
Shailesh Kanani, research analyst with Angel Broking, said, “Prices in Mumbai are surely up by 15-20%. Sentiments have changed; housing loans are coming at cheaper interest, developers’ liquidity position is better and buyers have started coming out. Now it has to be seen whether it is the pent up demand or investors coming in.”
Ashutosh Limaye, associate director-strategic consulting, Jones Lang LaSalle Meghraj, said, “Prices haven’t moved up generally, but in Mumbai they have in places like Bandra, Walkeshwar, Malabar Hill. Developers are now portraying a positive curve and we do not see prices falling further from here.”
Limaye expects prices will remain flat for a year or so. Vikas Oberoi, MD, Oberoi
Constructions, which plans to invest Rs 600-700 crore for developing 5-6 million sq ft said, “There is definitely a rise of 10-15% in prices as there is strong demand in various brackets and people are ready to pay the right price.”
Oberoi Constructions has mopped up Rs 400 crore in last two months from sales of its Jogeshwari project.
Research analysts Saurabh Kumar and Gunjan Pithyani of JP Morgan said in a research report on August 6, “Residential prices, after witnessing a sharp downward trend (down 25%-35% from peak) have stopped falling and have shown signs of increase (5%) in the past few weeks.
Going ahead, we expect demand to remain firm and further pick up strongly in 4QCY09 as we go into the festive season (Diwali is traditionally a home buying season in India) and developers continue to offer projects at attractive price points.”