April 29, 2010
Since the realty prices are back to pre-recession levels, the sales are decreasing.
The price of flats at Ashok Towers in the Parel area of Mumbai is Rs. 28 thousand per square feet. This is much above the rates at which builders were selling in 2007-08 at the peak of the property market boom. At that time, the rates were Rs 25,000-26,000 per sq ft. Gradually, the rates came down to Rs 16,000-Rs 17,000 per sq ft as the recession entered.
Although Ashok Towers is not the only example of this rate hike, other instances are apartments at Raheja Vivaria nearby Mahalaxmi area now quote Rs. 28000 per sq ft. Flats in Lodha Bellissimo are another example whose prices went down to Rs. 15,000 per sq ft at a point of time and now has a rate of Rs 23,000-24,000 per sq ft. This seems to be a smart and quick recovery from the recession days.
Although the prices in cities like Chennai, Bangalore and many other places in the national capital region experienced price hike, but it was on a slower pace than Mumbai and therefore might see continued buyer demand. Ashish Joshi, managing partner, real estate, at Milestone Capital said that in contrast with Mumbai where prices raised up to 40%, it was a hike of just around 10-15% in other cities.
