Real estate prices in Bandra and around Bandra have finally started showing signs of slowing down. The slowdown was expected for some time after 3-4 years of unending exuberance and upward movement in prices of housing in Bandra and surrounding areas.
This news article did not really catch the attention it should have. A land auction at business hub Bandra-Kurla Complex on Thursday fetched Rs1.55 lakh per sq. metre almost half the price from the previous auction that was help in March 2008. Jet Airways (poor guys) bought a residential plot in the same area for 3.52 Lakhs per sq mtr. Maybe they could have bought another plane with all that money!!!
If this is not enough, Wadhwa Group bought a commercial plot in the same complex in 2007 for Rs 5 Lakhs per sq mt!!
Do we assume that the prices in Bandra are all set to drop by 50%?
Very unlikely as builders will not drop the prices so easily even if that means holding on to the apartments. So what do experts have to say in Mint?
Anuj Puri, country head of property consultancy Jones Lang LaSalle Meghraj, said few land transactions have taken place in Mumbai in the last six months-though there hasn’t been any substantial correction in prices.
“Developers are not willing to pay astronomical prices for a piece of land and are waiting and watching for some correction to happen,” he said.
Hemant Shah, chairman of city-based builder Akruti City Ltd, said it has not bought any land this year. “Despite the slowdown, land prices are still high and sales have been considerably low. Developers who have bought land at astronomical prices last year have not been able to launch projects,” he said.
And what does this mean to us common souls who live in this area? Maybe there would be a drop in prices which are now being quoted from anywhere from Rs 15,000 to 30,000 per sq ft. Will this mean a drop in prices of 50%, not really but we should expect a drop of at least 20 - 30% in the near to medium term.
How can anyone justify a rate of Rs 15 - 25,000 per sq ft for an apartment in Bandra, Khar and Santacruz?
Lets hope that prices drop to more reasonable levels and make it affordable for all.
Leena
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