Sunday, March 30, 2008

Apartment available...

For the past few days, I have been observing this tower being advertised in Navi Mumbai for, hold your breath, UAE. It even says "Free residence visa" for buyers. The price is a steal, for those used to Mumbai prices.

But a big question to those looking to buy and also to those advertising. Why, except for our fascination with "phoren"?

But with real estate becoming so pricey in Mumbai, it wont be long before Mumbaikars are content with small matchbox houses in their city with a vacation home elsewhere...

3 comments:

bHu$hIr said...

probably the 'why' can be answered by someone in the UAE.. (though i'm not the quintessential Mallu from the Gulf)

anyhow, the why is quite simple. its not about building a vacation house in the UAE (them villas are still darn costly) but about high capital appreciation in the short term.

if you buy a property in Dubai, and that too at a good place, the appreciation is anywhere between 30-40% in a span of 6 months. and with the stock market bear high on cocaine, it makes sense to invest in properties abroad.

who's asking to even make the full payment? if the middle class can afford, pay a down payment of 20%, take the rest by loan, wait for 6 months, sell the flat, pack your bags, earn your money and head back...

in fact there are a lot of empty buildings that you'll find in Dubai. no one lives there. they're just kept for the value of the building value to rise so that they can be sold of to another investor who'll again do the same thing to earn his profit.

and this trend is supposedly going to continue until 2011. So mumbaikers with loose money are also invited to join the party and make a quick buck..

but what surprises me the most is that like you saw the UAE ad there, I regularly see superbly built class villas for sale in Bangalore in the properties column in the daily newspapers (and financed by HDFC & ICICI)... indeed the world is flat...

Kavi said...

Its almost crazy isnt it.

A flat in Mumbai is expensive. So, i go to buy in Ajman ! huh ! I cant imagine...!

Yes.A vacation home. A time to dream!

Neelakantan said...

Bhushir, good analysis...I had not thought of it that way. I was wondering WTF would someone want to live in UAE, but you are right, these houses are just assets that people buy and sell...