Property prices heat up in Mumbai

December 6, 2006	(Be the first to rate this story!)  Loading ...
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An apartment in Cuffe Parade in Maker Tower B has recently fetched Rs.73, 000 per square feet. Indeed, the property sale prices are expected to continue on their rocket pace touching around Rs. 80,000 per square feet for prime South Mumbai apartments. Such a scenario clearly underlines the fact regarding the over heated real estate market in Mumbai.

The areas of Mumbai which have seen massive escalation of real estate prices over the last few months include Walkeshwar and Peddar Road that witness property transactions upwards of Rs. 50,000 per square feet. As for certain areas like Navi Mumbai, the property prices may take a break but there will be no holding them back, say industry experts.

The secondary market has seen prices felling down modestly by 8% to 25% versus a year ago. Primary market being exception to this continues to hold strong. However, the commission that realtors are loosing in these property transactions here is getting compensated in the fast growing leasing market.

Prevalent sensationalism can be taken as an indicator to evaluate the rise in the Mumbai property prices. It does appear like bubble behaviour to the market analysts. However, Y.V Reddy, Governor of Reserve Bank of India does not hold the same perception. “We don’t take a view as to whether there’s a bubble, but there is a slight discomfort that asset prices have been moving too fast”, says Reddy.

Adding to the speed of local development of the city and its competitiveness are coming the new cities and townships such as Navi Mumbai which are certain to bolster the growth prospects of real estate even further.

News Published Under:   Real Estate India, Mumbai |

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