Mumbai Realty Prices Almost Doubled

March 24, 2010

One of the exclusive and elegant residential locations in Central Mumbai is Powai. Here the realty prices are now touching the sky. In last eight months, its rates have just doubled themselves. Short while ago, a property by Ekta World and Supreme Universal– a 2 bedroom-hall-kitchen (BHK) of 985 sq ft in Lake Homes, a residential complex was rated between Rs 90 to 95 lakh while the cost of exactly same size flats a nine month back would have been 68lakhs, Even in 2007, when the realty sector was at its peak, this flat would have been priced for Rs78 lakh.

In Lake Homes, the costs have been constantly going up. Just a month ago, the cost of the property was between Rs80 to 85 lakh; even there were four deals that took place at these prices. A resident of that area himself witnessed this price hike. He also told that since the real estate segment was going through depression, the 4th phase of Lake Homes was launched in May 2009 at a rate of Rs5,400 per sq ft. But now the prices are rapidly moving upwards. In Powai, a broker also informed that now-a-days, cost of a resale property in Lake Homes ranges between Rs11,000-Rs11,500 per square feet.

The Nahar Amrit Shakti project belonging to the Nahar Group which had a rate of 52 to 58 lakhs for new building in Powai is now asking for a price of around 90 lakhs. The project named Lilium & Lantana which was launched during the depression period and quoted at Rs5,400 per sq ft has now jumped to Rs9,000 per sq ft.

With all this, a service tax of 3 percent is also payable by consumers if the property is under construction. Although the Budget acts on service tax on such properties have not yet imposed, but builders are obviously passing on this proposed tax to buyers. Even the interest rates of home loans are to increase soon.