Property rates rose by 7% in 2014, 0.3% in 2013
The uncertainty surrounding the proposed Navi Mumbai airport did not work in favour of the satellite city, said the report by Jones Lang Lasalle (JLL) India
Apr 07, 2015
Source : The Times of India


MUMBAI: Residential property prices in Mumbai increased by only 7% last year and a negligible 0.3% in 2013, said a report released on Monday. 

The eastern suburbs from Kurla to Mulund saw an increase of 6% in 2014 and 5% in 2013 as land was still available to launch new projects. South Mumbai and the western suburbs between Malad and Borivli recorded similar increases. Bandra, Khar, Santacruz and Juhu also saw average price growths, as these areas lack a good supply of high-rises. Rates in areas like Thane and Navi Mumbai did not rise much either; the uncertainty surrounding the proposed Navi Mumbai airport did not work in favour of the satellite city, said the report by Jones Lang Lasalle (JLL) India. 

Chembur and Wadala stood apart from the lacklustre trend in residential price growth. "The two suburbs saw a tremendous price increase of 58% and 50% in 2014 over 2013, thanks to completion of infrastructure projects like the Eastern Freeway, which connects Chembur to south Mumbai, and the monorail, which was in the news recently for all the wrong reasons," it said. 

The report said even the average hike of 7% was primarily due to the development control (DC) rules that came into effect from 2013. Developers had to start paying for additional (fungible) FSI towards construction of lifts, lobbies, flower beds, balconies, etc, which had been FSI-free areas earlier. Other reasons for the increase in per-square-ft prices include the rise in ready reckoner rates and escalations in the cost of labour and raw materials. 

"Home prices in the financial capital are evidently not submitting to inflation, which is affecting cost of living in most other respects. Of course, given the sluggish demand for homes owing to already crippling prices, there is not much scope for appreciation," said Ramesh Nair, COO, business & international director, JLL India. 

The meagre increase in average property prices in the city stands in stark contrast to the general inflation rate of 6% in 2014 and 9% in 2013 (as per CPI data). "These figures definitely put paid to the popular perception that Mumbai's developers keep increasing prices despite the fact that inventory has been building up and housing demand slowing down over the last couple of years," said Nair. 

Latest Realty News

Apr 07, 2015
BENGALURU and MUMBAI: Ascendas India Trust (a-iTrust), an Indian property trust managed by Singapore-based Ascendas Property Fund Trustee, is close to buying 15.86 acres of land from Kansai Nerolac Paints in Chennai
Apr 07, 2015
New Delhi: Realtors' apex body CREDAI today demanded that the RBI should impress upon the banks to pass on the benefits of previous two rate cuts of 0.50 per cent to the home loan borrowers
Apr 07, 2015
MUMBAI: The state government does not want to let go of private forest land that has not yet been developed
Apr 07, 2015
MUMBAI: A CBRE India Office Market View for Q1 2015 said Mumbai witnessed an increase of 44% in transaction levels in the first quarter of the year.
Apr 07, 2015
BHUBANESWAR: Keeping in mind the housing need of the upcoming Infocity-II on the city outskirts, Bhubaneswar Development Authority (BDA) is planning an integrated township project
Apr 07, 2015
KALABURAGI: The State government has decided to support urban local bodies in the State to unlock the value of significant real estates owned by them
Apr 06, 2015
THIRUVANANTHAPURAM: The city corporation, which collects regularization fee to legalize unauthorized constructions in the city, does not keep a record on such buildings
Apr 06, 2015
Pune: After budget homes, premium homes and luxury housing, real estate majors in Pune are now eyeing integrated township projects
Apr 06, 2015
AHMEDABAD: Amplus Realty Fund has sold its investment in Assetz Lumos, a residential project of Singapore-based Assetz Property Group in Bengaluru
Apr 06, 2015
Ranchi: Union transport minister Nitin Gadkari will reach the state tomorrow to address farmers directly on the benefits of land acquisition ordinance

Latest Realty News Of State

Realty Talk's