Monday, January 28, 2008

Insane housing prices in Mumbai


I came across the table of values from the site http://www.narains.com/rates.htm and its astounding to see prices in Mumbai keep on escalating over the past few years. Certain areas like Santacruz have seen in prices triple in the past 3 years. I'm not able to figure out how many transactions take place at these prices. At these rates a 2 bed room apt measuring 1000 sq/ft could go for over 15M to 30M rupees in an A grade building. With 40 rupees to a dollar we are taking about 400-900$ per sq/ft. With these prices I could very well purchase in New York ..., not speak of other places in the US

Location
'A' Grade Bldg.
'B' Grade Bldg.
'C' Grade Bldg.
Cuffe Parade / Colaba
Rs.35,000 - 60,000*
Rs. 22,000 - 30,000
Rs. 15,000 - 18,000
Marine Drive / Nariman Point
Rs. 40,000 - 50,000
(NCPA Only)
Rs. 20,000 - 25,000
Rs. 15,000 - 18,000
Malabar / Cumballa Hill
Rs. 35,000 - 60,000*
Rs. 22,000 - 30,000
Rs. 15,000 - 18,000
Napean Sea / Warden Rd.
Rs. 35,000 - 60,000*
Rs. 22,000 -30,000
Rs. 15,000 - 20,000
Worli
Rs. 30,000 - 40,000*
Rs 16,000 - 22,000
Rs.12,000 - 16,000
Prabhadevi
Rs. 18,000 - 22,000
Rs. 13,000 - 18,000
Rs. 10,000 - 12,000
Bandra
Rs. 18,000 - 30,000
Rs. 13,000 - 18,000
Rs. 11,000 - 12,000
Khar / Santacruz
Rs. 16,000 - 18,000
Rs. 12,000 - 16,000
Rs. 8,500 - 10,000
Juhu
Rs. 16,000 - 20,000
(Sea facing)
Rs. 9,000 - 11,000
Rs. 8,000 - 9,000
Lokhandwala / Versova
Rs. 9,000 - 14,000
Rs. 6,500 - 9,000
Rs. 5,000 - 5,500
Powai
Rs. 9,000 -11,000
Rs. 6,000 - 8,000
Rs. 4,500 - 5,500
Mumbai Property rates per sq.ft. Updated as on 5th Jan 2008



11 comments:

Shailesh said...

Mumbai - It is the Maximum city.

I don't even know where to begin. The property rates I have heard are actually more then what you quoted. In fact in one old apartment complex near my house, some builder wants to give residents money and build a mall. Aparantly each flat owner was offered rate of Rs 20,000 per sqft, where current ongoing rate is about Rs 6,000. I feel all over Mumbai right now is huge hangover from stock boom. People talk in Crores while their incomes are in few lakhs. If US had subprime issue, I would say at least that Mumbai's property bubble would put shame to anything in US.

Anonymous said...

Are the residents of the building taking up the offer and scooting, or are they being greedy and want more ? Also which area is this ? I've heard of similar deals been offered to some other buildings in bandra(w) but now due to some unknown reasons the deal has been shelved ?

Praful Vora said...

The 'narains' rates in the yellow box has a * which says rates are based on carpet area, meaning that given rate is per sq.ft.carpet area. Am I right in my understanding?
So ... do your rates also reflect per 'carpet sq. ft.' or are you talking of the 'super built up sq. ft.'?

There would be a drastic change in 'rates' if one were to confuse super built up with carpet since in most buildings, super built up is 50% more than carpet area. Can you comment please.

Venky said...

These are all super built-up rates. Its unfortunate but true that upto 40-45% of the sq.ft is lost due to super built up. So one ends up with a tiny apartment for huge price if one takes that into account.

Anonymous said...

ThIS boom going to BUST.Every speculator is dreaming. there are no economical fundamenatal to support this bubble. All speculators are going to cry big time. if I m specualtor I would get out real quick before my price go down less than 50% & still can not find buyer for my flat. Interset rate is india is almost double than USA, Income in Mumbai is less than 1/10 of an Average person. Builder borrows hard cash at interset rate of 24-36%, average owner pays 10-15% mortgage interest. There are more than 200000 flats un occupied in Mumbai with speculators dreaming double their money. Expert Advise dump your flat quick & get out otherwise situation will be worst than USA & Europe. We live in global economy, look at stock market index went 20000 to 15000real quick isn't it. So be smart & use commom sense.

Anonymous said...

This is from an inside source in Mantralaya in Mumbai : With the upcoming state and central elections the builder lobby has been given a free run in the short term, so long has a huge percentage of their profits comes to the election kitties of the political parties. After the elections, the builders will obscond and the individual investors will face a crash that will make the current US housing bust look like child's play!

Anonymous said...

Why will be builders abscond ?

Anonymous said...

Mumbai's urealistic property prices is a artificial creation by builder's lobby and won't withstand long. Inflation rates, oil and food prices index increasing every week, higher home loan interest, tight money liquidity and job market all these will keep end users as well as investors to suffer. Those who bought houses at peak rates will repent as year 2009 approaching, the bubble will burst.A 30% decline in the prices is imminent.

Anonymous said...

I think those who keep publishing boldly that property prices in Mumbai to rise further is a total crap. People who bought flats at higher prices in 2007 and first quarter of 2008 for whatever use may incur huge losses in the coming years. We haven't learned from U.S. subprime collapse. People have invested blindly and greedily to earn profits in short time. Year 2008 and 2009 will see a lull in property market

Anonymous said...

http://economictimes.indiatimes.com/articleshow/3611928.cms

The current crop of tactics of real estate developers to attract buyers sounds like an amateur implemention of Principles of Marketing by Philip Kotler .. looks like some jack ass fresh MBA passout is consulting them .. and is concentrating only on the Promotion part of the 3Ps of Marketing .. Price is the first of the 3 Ps of Marketing .. They should realize that they have priced themselves out of the market .. get that right .. give up your greed and customers will flock back again..

Home prices in India today rival those US and UK for equivalent neighbourhoods with a far lower quality of infrastructure and comfort. I think today customers are tired of these stupid builders .. they need to stop playing games ..

I have never seen so many anguished people wishing that an entire industry crashes and is brought to its knees.

Anonymous said...

I am very very anguished seeing the pain that real estate folks will now have to go through to wash their sins.

Q. Is there a lot of pent of demand for flats/apartments in India?

A. Emphatic Yes.

Q. Is there a demand at US rates? Flats for 1.5 crores and apartments for 5 crores?

A. Very doubtful. The speculators who dream of doubling their money every year will have a problem in their hands.