Wednesday, June 30, 2010

Few flats under Rs 50 lakh...

Skyrocketing property prices over the last few months have taken housing beyond the reach of the salaried class, with barely six per cent of the total new housing stock in Mumbai priced under Rs 50 lakh. On the other hand, a staggering 46 per cent of these flats cost over Rs 1 crore.

Figures compiled by real estate research agency Liases Foras show that of the 8,000-odd flats that make up the unsold housing stock, hardly 500 are priced below Rs 50 lakh.

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Analysts say these rates are the result not only of increasing prices and sizes of new flats but also of the heavy loading by developers. Most new flats come with frills such as flowerbeds, viewing decks and amenities like clubhouses and swimming pools that are included while calculating the super-built-up area on which flats are sold. This notional loading is as high as 50 to 80 per cent of actual carpet area.

“In case of one-bedroom flats, builders can’t justify a loading of 80 per cent on a flat with a carpet area of 300 sq ft to a buyer who is already hard-pressed for money. It is easier to cover up the discrepancy between actual size and loading in larger flats which is the reason why most developers today are constructing only two to four bedroom flats,” said Sandeep Sadh, CEO of Mumbai Property The trend is catching on outside Mumbai, too, with developers like Lodha launching Rs 1-crore-plus flats in Dombivli.