So It looks like Mumbai is no different then the rest of the country. All the arguments of island city, no area to develop , constant demand, no supply, blah, blah seem to have failed. Credit and affordability drives markets. For too long we have been subjected to the builder and realtor rhetoric and many have been suckered into buying properties at outrageous prices.
From what I see 3000 per sq/ft seems to be the floor for housing in suburbs. Now depending on the builder you can get suckered into the super-built up area and end up paying 40% more but atleast
the base price is down.
Source : CNBC-TV18
Home buyers should gear up for good news. Home sale volumes seem to be bouncing back but at steep discounts. Mumbai developers have started bringing down prices, and in some cases the dip is as high as 50%.
CNBC-TV18’s Priyanka Ghosh reports.
For those who are waiting to buy a house, this could be a good time. New project launches in the market is witnessing a steep correction, with apartment prices in suburban Mumbai recording a dip by a whopping 50% in some cases, a clear indication of how hard pressed developers are for sale. Not surprising, as many of them have had single digit transactions last quarter.
Sandeep Runwal, Managing Director of the Runwal Group said, “In Thane, if you were selling at Rs 5,000 per sq ft (earlier), prices are down to Rs 3,100 and 3,300 per sq ft (now). So, you have seen a realistic correction of 45-50%... but it has brought the consumers back into the market.”
Sanjay Dutt, Managing Director of Jones Lang LaSalle Meghraj added, “I am talking about developers like Akruti, Lodha and Rustamjee, who have launched projects in the region of Rs 2,500 and Rs 3,000 a sq ft and from whatever I have learnt, they are selling.”
The Runwal Group sold 600-700 apartments in the past three months at a discount of 40-45%. Whereas, HDIL sold 70% of its Kurla project in five days, in March 2009 after launching it at a 35% discount.
CNBC-TV18 learns that Thane alone had 6,000 transactions in the past three months. Companies like Orbit Corporation and Nirmal Lifestyle too have revised pricing to the tune of about 35%.
That, according to experts, is in tandem with the average price correction Mumbai has seen this quarter.
But there is another rationale to this rampant price reduction. We understand that developers have come under tremendous pressure from both banks and private equity players to sell and churn inventories if they want funding and disbursal of loans. And, of course, in a cash strapped environment, developers have little choice to accept these terms and bring down prices to sell.
From what I see 3000 per sq/ft seems to be the floor for housing in suburbs. Now depending on the builder you can get suckered into the super-built up area and end up paying 40% more but atleast
the base price is down.
Source : CNBC-TV18
Home buyers should gear up for good news. Home sale volumes seem to be bouncing back but at steep discounts. Mumbai developers have started bringing down prices, and in some cases the dip is as high as 50%.
CNBC-TV18’s Priyanka Ghosh reports.
For those who are waiting to buy a house, this could be a good time. New project launches in the market is witnessing a steep correction, with apartment prices in suburban Mumbai recording a dip by a whopping 50% in some cases, a clear indication of how hard pressed developers are for sale. Not surprising, as many of them have had single digit transactions last quarter.
Sandeep Runwal, Managing Director of the Runwal Group said, “In Thane, if you were selling at Rs 5,000 per sq ft (earlier), prices are down to Rs 3,100 and 3,300 per sq ft (now). So, you have seen a realistic correction of 45-50%... but it has brought the consumers back into the market.”
Sanjay Dutt, Managing Director of Jones Lang LaSalle Meghraj added, “I am talking about developers like Akruti, Lodha and Rustamjee, who have launched projects in the region of Rs 2,500 and Rs 3,000 a sq ft and from whatever I have learnt, they are selling.”
The Runwal Group sold 600-700 apartments in the past three months at a discount of 40-45%. Whereas, HDIL sold 70% of its Kurla project in five days, in March 2009 after launching it at a 35% discount.
CNBC-TV18 learns that Thane alone had 6,000 transactions in the past three months. Companies like Orbit Corporation and Nirmal Lifestyle too have revised pricing to the tune of about 35%.
That, according to experts, is in tandem with the average price correction Mumbai has seen this quarter.
But there is another rationale to this rampant price reduction. We understand that developers have come under tremendous pressure from both banks and private equity players to sell and churn inventories if they want funding and disbursal of loans. And, of course, in a cash strapped environment, developers have little choice to accept these terms and bring down prices to sell.
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