Mumbai housing prices soar by 66 per cent in 4 years

New Delhi: Housing prices have increased by an average 66 per cent in Mumbai over the last four years on account of steady demand and rising input cost, according to property consultant Jones Lang LaSalle (JLL).

The increase has been even higher at 70 per cent in Thane and 74 per cent in Navi Mumbai.

"The cumulative price escalation figures for Mumbai, Thane and Navi Mumbai represent the highest among all cities in India," JLL India Managing Director (West) Ramesh Nair said in a statement.

Gurgaon and Bangalore saw price appreciation of 52 per cent and 46 per cent, respectively, during this period.

"Residential property prices in Mumbai have increased steadily after the correction seen post the Lehman debacle. In the period from the second quarter of 2009 to the same quarter in 2013, residential real estate prices in Mumbai have increased by 66 per cent," Nair said.

On reasons for price rise, Nair noted that the demand for investment residential properties and end-user homes in the country's financial capital has remained stable.

That apart, the consultant attributed the prices movement to limited supply of clear land, reduction in new launches between 2011 and 2012 middle and high interest rate scenario.

"In the Indian city which has for years carried the unwholesome reputation of being the most over-priced in terms of residential real estate valuations, there is no relief in sight for aspiring home buyers.

"Over the last four years, property valuations in the financial capital have increased by an average of 66 per cent. All 'expert' predictions over the last 3 years, of an imminent correction have proved to be wrong," Nair observed.

source:- http://profit.ndtv.com/news/industries/article-mumbai-housing-prices-soar-by-66-per-cent-in-4-years-322161

1BHK units sell most in Jogeshwari East, Mumbai

Mumbai

Situated in proximity to upscale residential localities such as Andheri, Lokhandwala and Goregaon, Jogeshwari East has carved a niche for itself as a preferred residential destination due to comparatively lower capital values. The locality has attracted a huge demand for 1BHK units in particular.

As per data with MagicBricks.com, demand for 1BHK units was recorded to be more than 60 per cent during the Apr-Jun 2013 quarter in Jogeshwari East. However, supply was startlingly low at 30 per cent.

Sayed Imran Quadri, Assistant General Manager, SMGK Pvt Ltd, says, “In Jogeshwari East there is a huge demand for 1BHK units. With slum rehabilitation picking up pace in here, 1BHK units are being constructed for the slum dwellers. However, they do not prefer to stay in these homes and re-sell them. People working in the neighbouring areas such as Lokhandwala and Andheri prefer small apartments accommodation buy from slum dwellers as they offer to sell at lower rates.”

Increasing capital values and enhanced connectivity via the Jogeshwari Vikhroli Link Road (JVLR), which connects Jogeshwari East to both Western and Eastern Expressways, the locality has caught the fancy of many a realtors and investors. “The locality has witnessed a healthy appreciation of roughly 20-25 per cent in the last one year. This has attracted investors,” says Sam Patel of Central Links India, a city-based real estate firm.

“Investors generally prefer 1BHK units, as they are easy on their pockets, have maximum demand and are easier to sell off,” adds Patel. These factors have together resulted in an increased demand for 1BHKs.

In spite of the high demand for smaller units, supply in Jogeshwari East is largely limited to 2 and 3BHK units. “It is easier for developers to construct and sell larger units as compared to 1BHKs. More number of smaller units mean more units to maintain and larger consumer base to deal with,” exclaims Quadri.

If market experts are to be believed, demand for smaller units would continue to pour in from both investors as well as end users. Developers are gradually waking up to this demand and have started offering 1BHK units in their projects. It needs to be seen how long it would take to diminish the gap between demand and supply of 1BHK units in Jogeshwari East.

source:- http://content.magicbricks.com/1bhk-units-sell-most-in-jogeshwari-east-mumbai/