Developers Fear Immense Price Hike in Mumbai Real Estate

January 14, 2008	(2 votes, average: 1 out of 5)  Loading ...
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Real estate developers fear a whopping hike of 30% to 50% in demand as well as prices of property in Mumbai, Pune, Nasik, Chennai and Bangalore, compared with the ongoing steady demand and prices in Delhi and the NCR region from March 2008 onwards.

As per Industry experts the demand for residential properties is expected to rise by 30% from March 2008.

Speaking on the same Mr. Abhinandan Lodha, director, Lodha Group said that the commercial property rates in Mumbai are expected to rise by about 50% with more premium buildings getting constructed. The growing popularity of India as the hottest destination for premium commercial establishments also provokes builders to set up huge number of commercial buildings in one location.

Property prices have already touched the roof since the past two years when the booking for Ashoka Towers started at Rs 4,000 per sq ft. However, now the prices have shot up by an additional Rs 18,000 per sq ft. As a result, home buyers have started eyeing Pune, Nasik, Chennai for setting up second homes instead of buying a second home in Mumbai for weekends.

One of the major factors contributing to the immense price hike in Mumbai is the fact that out of 90 lakh homes in Mumbai, only 30% homes have been built so far. For example, investors have bought many flats in Kharghar, where 70% of the buyers have still not resided.

In Chennai and Bangalore, dual income families have started spending more on EMIs on buying big homes. Although currently Chennai is not considered a very active property destination, with the mixed used development under construction by Hirco (15 mn sq ft), Chennai will also see boost in prices and demand as well. Besides, there is already overbuilding been happening in Bangalore. Hence, the huge demand. On the contrary, NCR region and Delhi has already seen developments of this size. /

News Published Under:   Real Estate India, Mumbai, Real Estate Developers |

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