Thursday, June 21, 2007

Reality check

That Mumbai is a tough place to shop for a residential accomodation is very well known - It has been so for quite a few years now. Yours truly has been hunting for a place - and the search has been frustrating.

I first thought mid suburbs were affordable - till I realized the jaw dropping prices for pigeon hole spaces - then decided out-of-Mumbai limits are better. Only to find jaw dropping prices for slightly bigger pigeon hole spaces. High prices keep going higher !! Citius, Altius, Fortius indeed.

Now, like Bollywood films, logic is thrown to the winds, when it comes for a reason for a high price. Reasons that I have been given as to why a particular area commands a "high price" range varies from proposed Airports / shopping malls/multiplexes/metro stations to anything as one realtor told me "this building has capsule lifts - which no other building can boast of ". Oy vey!! (Electricity was almost touted as a reason, as was water). I also happened to visit an acquaintance and ended up asking if they had any vacant houses - and they went "every one wants to come to our society - we have none". (indeed - the entire world is at your feet !!)

Of late however, I have started witnessing discounts being offerred though in an implicit way. Rsxxx/sq. foot - all inclusive (parking + society charges) unlike earlier ...or if I got to a broker he says I can offer at a discount as compared to a builder. So, does this mean, that the market is slowly going to slide? Is it the begining of the decline? Cant say right now- the jury is still out on that. However, with the amount of money real estate developers have raised (both in Indian markets and in AIM) probably they can hold on to the prices much longer than before and delay or soften, if not prevent the inevitable slide !!

1 comment:

Kavi said...

The prices are plateauing all across. We cant have such unreal prices sustained ? Or atleast the prices are not appreciating at the rate at which they used to !