Tuesday, March 24, 2009

Mumbai project prices

I'm trying to consolidate some of the information posted in the comemnts. Lets keep updating this list.

Chembur

Everything was 7.5k and above. Now uniform 7000 (except Diamond Garden - about 10k)

Raheja Acropolis - Aphrodite building - Two months ago - 8600. Now 7200.

Remaining buildings in Deonar - havent checked, but have to trade down compared to Raheja.

came across this fantastic construction in Deonar, problem was all apts were 2200 sq. ft. Normal times, would have been a 9-10k building, was quoting 7.5-8.5. Not much available though, apparently.

Central Mumbai

Have only started research here.

Ashoka tower, Parel - Peninsula Project, Quoting 20k, Investor at 18k

Ashoka Garden, parel - Another Peninsula Project - Was 14000, now magicbricks has a seller at 11500.

Dosti Flamingoes - 10k, down from 12-14.

6:56 AM
Anonymous Cool Head said...

Common Man,
Here's to add to your database. A colleague was shown a new complex coming up at Thakur Village Kandivli, in the "luxurious" category. Builder says 5999 discounted from 7500 a few months ago. Broker signalled that if serious can be had for even 5500, my colleague is angling for about 4000.

7:02 AM

28 comments:

Anonymous said...

Pune- Baner-Pashan link road 3000 for Luxury Apartment.

Baner- 2600 - 3200 from peak price of 3800-3500.

Venkatesh Babu K R said...

In Bangalore, there is nothing much that has happened. I think people here are preferring to keep the property with them than sell the same.

Just as an example: JP Nagar 8th, 9th phase - I've seen rates starting from 1500 per sq.ft, go upto 3000 per sq.ft but are now in 2200 per sq.ft (not even below the 2005, 2006 levels)

Anonymous said...

Government Bails out builders"

Anonymous said...

Raheja Acropolis (Deonar) Phase I still quoting at 11,000 bulider is giving at 10,000 when you sit with cash. My request is not to buy this property till the builder offers at 6k. Hold on builder will bring Pahse II property (Deonar) at 5k shortly and Pahse I at 6k. Pls. do not buy builder is holding huge inventory in Pahse I.

Property tax is pinching Raheja now and is bound to lower the rate.

Cheers!! Vik, vulture (HB) and Observer you are proved right and I personally feel now that we will see major correction by June 09 in lot of pockets.

Bindas Bhai

Observer said...

I have given up plans to buy property in Bangalore. I lost my job, and there is a hiring freeze. Luckily, I have plenty of savings, and family nearby. Most importantly, I have no debts, and no house. I can vacate my apartment after providing 2 months notice. I am planning to search for a job for a couple of months in Bangalore, and then look elsewhere. Others are also silently losing jobs, as they are being asked to sign resignation letters in exchange for 3 months salary, to make it appear it is voluntary.

From what I have been reading, there is a major depression coming along, which means many jobs, even in India, will be lost. My cousin said that in Times Group many jobs are being silently cut, and the loss of staff is explained away as "attrition". People are being asked to resign, and not create a fuss while leaving, to prevent bad publicity.

I have a B.Tech degree from IIT and was working in the manufacturing sector. Nobody is immune. People should make plans accordingly.

dman said...

well how bout the new megapolis by hdil in andheri , btw does anyoen know where one can keep track of all the new projects coming up in mumbai ???

kartik said...

Can someone post about Sindhi Society area rates? are they also 7k now for Kukreja projects?

Anonymous said...

Dear Observer,

All the best to you. I sincerly hope that you come out of this temporary situtaion very soon.

Pls. dont worry with your kind of qualification and attitude you will do very well.

Regards,

Bindas Bhai

Anonymous said...

Kukreja, pls. dont go near this builder. He is a big chor and quality of construction is pathetic. I would suggest you to wait for somemore time. I feel the rates will come around 5 to 6k shortly for Sindhi Society.

Sundeep Jugasia is a good builder in Chembur. Currently he has a project at Sindhi society, speak to him it is worth paying him 10% more then Kukreja. Resale value of Sundeeps project will be much more then Kukreja.

All the best

Vik said...

Observer,
The situation is grim everywhere, though I think for someone with your qualifications you should be able to get another good job soon. I've been laid off in the past and though not a pleasant experience, it allows you to do things which you couldn't do. Take your time off and recharge. You will come back stronger. What is your skillset ? Which field are you in ? Maybe there are people on this blog who could help

Cool Head said...

Observer,
I am really sorry to know it. You are one of the sane voices on this blog and it is really sad to know that somebody as sane, logical & cool has to go thru this whereas most of the a**holes who started this "boom" thing are still in the saddle. Take heart and things should be on the upswing soon, maybe you can start a new business-now is the best time to sit back, evaluate possibilities and do this.
All the best!

Kapil said...

Observer, I have been watching this market from last 10 years. Last 2 years were toughest ever, no doubt about that. I was thinking that depression era would come back soon. In fact One month back I was convinced that depression would come soon.

However, my perception is changing slowly. US government is buying junk asset for almost $1 B in coming time. US government has already spent almost $5 B directly/indirectly. But last decision to buy bad asset is game changer. This will free bank balance sheet by great extent. Banks are not going to start lending right away but significant lending will be done in coming months. Economy engine will start running by second half of this year. Employment is leading indicator hence by year-end it should be better. Market will try one more attempt of bottom in early summer and will bounce back and recover from this mess.

On related note bad debt will come to haut US government soon but in short run depression will be avoided.

Shriniwas K said...

Hey Observer don't lose hope -

Tier 2 cities have big promise for manufacturing
Aurangabad Nashik Satara Kolhapur Raigad Have driven out manufacturing from Mumbai-Navi Mumbai - Pune belt. Similarly Mysore, Mangalore Coimbatore Hubli dharwad have attracted good manufacturing.

With your qualifications and experience you can do well not only as an employee but as an entrepreneur too.

I have a business idea and am looking for help in the Karnataka region - I will fund. Email me for info as you are anonymous.

Observer said...

I am in the auto components design field. I have enough savings to last me a few years, so I am not worried too much. Unlike some others who also got laid off with EMIs hanging over their head, and all their savings sunk into that property. I am just so glad that I never fell for the hype of buying property at these inflated prices. Nor do I have an expensive car, I was waiting for the Nano. I just wanted to sound a cautionary note to people to always think about uncertainties in life when taking on 20-year commitments.

Luckily, I have enough money to think of starting my own business. A time to re-evaluate what one wants to do, and to think about the real things which matter in life. The spending priorities should be:

a. Basic living expenses (food, rent, kids education, utilities)
b. Life Insurance with terminal illness cover (to protect family)
c. Accumulation of at least one year's worth of living expenses in a Fixed Deposit
d. Contribution to PPF

and only after taking care of the above, one should spend on a car, entertainment, new clothes, foreign trips, gadgets and other things in life. And also saving for a downpayment for a house such that the rent will be similar to the mortgage payment.

It is all about de-risking, and fiscal responsibility.

Observer said...

Shriniwas, K, I want to take some time off for a couple of weeks and really think about what I want to do. I have your contact info, so I will contact you once I have a better idea about what I want to do. Thanks for your kind words.

Observer said...

Kapil,

I am based in India, not the US. India has always had higher unemployment than the US, the current estimates are close to 22% of the population is unemployed or seasonally employed. These would be depression level numbers in the US.

Second, except for the newly minted IT crowd in India, most people in India are very conservative with money. Only some IT-BPO employees and indigent farmers in India are heavily indebted, one out of choice, the other out of compulsion.

The depression I am referring to will primaily affect the indebted class in India, because of the knock-on effects of the acute recession in the rest of the world.

Kapil said...

Observer, I agree with you on India. I have my family back in India and I talk to them and other friends frequently. One thing I continuously hear is current congress government has made Country economical unsafe, socially unsafe, life unsafe. Corruption is skyrocket in last 3-4 years. Farmer/people suicide is common. Everybody is suffering in India in spite of knowing that India does not do global trade that much and should have been safe. However, this congress government is very corrupt and we will know all kind of mess once they are gone.

I am not in mood to start political debate but I am hurt when I hear from my family/friends.

Anonymous said...

Observer,

While I appreciate your idea to keep some savings, I advise you not to go overboard with it. When TMT bubble in USA burst, my job was at risk. I increased my savings, reduced expenses and held on to cash. Net effect: Your savings were eaten away by inflation and currency depreciation. I took oath in 2005 that I will never ever trust cash again. Needless to say, I got wiped out again in stocks. I still don't trust Bernanke or Obama, and I distrust INR even more. Watchout for ass holes with academic degrees like Bernanke & YVReddy, who always try to blow one bubble after another.

Anonymous said...

Observer:
You'll be fine. And with an IIT degree in India, you will soon land up with something good and promising.

Anon above:
Cash is okay if you park it in fixed deposits yielding 10% or higher. This beats inflation and is a good return. Stocks and RE are investments and there is high rist associated with these investments.

--HB

Anonymous said...

Boss,

Can you tell me any risk free investment that yields higher than inflation rate? The fact is that in order to be risk free, you should be willing to lose money thru inflation. As you learnt by now, inflation below 0% is not acceptable to central banks. Isn't that the reason behind printing trillions of dollars while keeping interest rates at 0%. In other words the central banks are struggling to keep risk free yield below the rate of inflation. I have a lot of confidense that these central banks succeed in it. Only problem is that it again enriches people like Warren Buffett and destroys working class. If you are not aware, Warren Buffett made a killing on his investments in 1970s highly inflationary era.

Anonymous said...

what is the TMT bubble ? There was the tech bubble of 2000 and the housing bubble of 2007

Anonymous said...

Job loss is not a new thing, somewhere in 25 years of career almost every one will come
across this situation. The reason may be shut down of company, recession, lock out etc.
Around 90s, Premier Group (India’s largest car mfg. at that time) shut down the manufacturing unit at Mumbai & it pushed more than 10,000 people on bench.
In this scenario youngsters can switch to new jobs, acquire new skill set & move ahead. But if you are above 40, then it’s a really tough situation in life.

I would suggest take your time & do something (business/job) which will secure the
next 25 years. My best wishes are with you.

Even based on most pessimistic prediction, recovery will start in last quarter
or the 1-2nd quarter of 2010. The Unemployment situation will improve after 2nd quarter of 2010 in US. For India it will still take 3rd Quarter of 2010.

NOTE: The cause of trouble is Greenspan not Bernanke.

Vulture.

Anonymous said...

Sobha close to bankruptcy?
For several months now we are witnessing the downfall of realestate biggies none as dramatic as the downfall of sobha, once the most favored by rich and famous as the ultimate in quality and prestige. It has clearly fallen on hard times, as the management failed to read the writing on the wall started making apartments claiming to be 'ultraluxury' category, speculated and shot itself in the leag, by allowing rates to skyrocket making their homes all but unaffordable save for blackmareteers and some high netwtrth earners. I have seen even ordinary projects of theirs appreciate to unrealistic rates, and now they are condemned to reap as they sow- to near bankruptcy-'buyers beware- they probably will not have money to complete your newly booked apartments.

http://www.livemint.com/2009/03/25224505/Revenue-down-50-Sobha-cuts-w.html

GK said...

The important point in that article is...

Sales have not picked up even after developers such as Sobha are trying out various out-of-the-box marketing techniques such as its recent Home Mela. The two-day property exhibition that showcased 18 different properties of the company concluded with only six apartments being sold.

Praful Vora said...

Could someone inform me of the current 'rate per carpet sq.ft.' for Juhu Versova Link Road, near Juhu Circle, Andheri West, Mumbai.

I believe most of the rates quoted are per super built up and this varies across zones. I suggest, all such rates be based on 'per carpet sq.ft.' to eliminate variations. It is understood that the higher rate will include additional facilities or open spaces.

Vik said...

the carpet rate should be atleast 8-10k. With a loading of 40% it could go to 12k-14k.

Cooltoad said...

what is your opinion on central mumbai projects that you have mentioned in your blog. what kind of correction do you further see in these projects

haridas said...

Vik & other moderators,

Is it possible to keep a page focussed on Mumbai project rates? It would be vital so that there is good information about different projects in Mumbai, as this info is difficult to get in the market..

Am not saying that Mumbai is the only city people should be writing about, but maybe other cities can run separate pages..