Thanks to Prime Minister Manmohan Singh and his stable government in power, property prices in the city have shot up notably.
Thanks to Prime Minister Manmohan Singh and his stable government in power, property prices in the city have shot up notably.
In the past month, builders, who had earlier slashed rates by about 35 per cent, have increased their rates by 10-15 per cent. And the buyers don't seem to be complaining.
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The Lodha group registered 1,000 bookings, while the Nahar group sold 620 flats in the last month. Experts say people are investing in property because they foresee a steady economy because of our government.
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DEAR ESTATE: After a long slump, builders have hiked rates by 15 per cent, as they foresee a good future in our stable government. |
R Karthik, senior vice-president, Lodha builders, said, "Transactions have increased due to economic stability."
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S Rao, a resident of Andheri, said, "The financial future of our country seems stable. I don't mind investing, but the builders should not increase the rates too much."
Double effectSandeep Sadh, a realtor from the western suburbs, believes a combination of the Manmohan Singh government and the recent golden run of the stock market has led to the improvement in the real estate market.
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"It is ideally wrong on the part of the builders to increase rates since we are still burdened under the economic slowdown.
But the morale of builders has risen because of improved sales," said Sadh. But Mihir Dhruva, CEO of Siddharth builders, said, "If the rates become unrealistically high, sales will drop again."
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However, some builders are unrelenting. Early this year, a Bandra broker had struck a deal for a four BHK flat in Khar for Rs 15,500 per sq ft.
But now the builder is demanding Rs 18,000 per sq ft. "Rates in the Bandra-Khar area have risen to Rs 20,000 per sq ft from Rs 18,000 per sq ft.
And buyers are still striking deals," said Vibhoo Mehra of Mumbai Properties, a real-estate brokerage firm.
Experts warn
Most of the bookings u00a0take place in the under-construction projects. Thus, buyers should check details, including date of possession, before investing.
It is advisable to buy from credible builders. "Builders may demand unrealistic prices and try to extract money for excise on the cement from buyers," said a realty expert.
