Now, even Mira road is unaffordable

Property rates have gone up by 20-25 % in the last six months

Savita Rijhwani (24) is all set to get married in the coming months -- the families are ready, shopping is on in full swing -- but one major hindrance, despite a budget of Rs 30 lakh, is a house. She was earlier looking for a two-bedroom hall kitchen flat in the Mumbai region up to Dahishar and Mira road, but now, with real estate prices moving northwards again, she has to look even beyond Mira Road.

During the recession, property rates in the city had come down by 20-35 per cent depending on the location.

However, in the last six months, the rates have escalated by 20-25 per cent. V Sharma started looking for a 1 BHK flat in Mira Road nearly six months ago and the owner was demanding Rs 13 lakh for the flat. Two months later, the prices shot up to Rs 15 lakh and currently the rate is nearly Rs 19 lakh. Sharma says he has to act now, "I cannot wait any longer as the prices are escalating and very soon the flat would become unaffordable I wish I had bought the flat last time itself."

Builders are a happy lot with the growing prices but are also careful and understand that if the rates reach an astronomical high, the market will fall soon. Abis Rizvi, Director, Rizvi builder, said, "The prices in areas like Bandra have gone up by 30 per cent in locations, the real estate market is back on its feet. But the prices has to be checked, if they rise above affordability then it won't be a good sign."

Vibhoo Mehra, a real estate consultant from western suburbs, claims prices have gone up in the last three months and have touched a peak.