Mumbai
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.
Updated : Feb 01, 2010, 01:01 AM IST
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.