Residential real-estate prices in Mumbai have risen 30 to 50 per cent since January, the highest ever such rise in the metro, industry experts have said.
As prices rise, sales have seen a corresponding dip — of up to 40 per cent — leading to concerns over the formation of a real estate bubble.
“While earlier a project may have sold 10 units a month, now sales are down to three or four units,” said Sandeep Singh, director of Santacruz-based ProBuild developers.
Lower Parel, Parel and Mahalakshmi now have projects with rates of Rs 50,000 per sq ft, said Anuj Puri, country head for real-estate consultancy Jones Lang LaSalle India. “There is definitely a worry over that a real estate bubble may be forming in such areas.”
Premium projects from Lodha, Raheja and Lokhandwala developers in central Mumbai witnessed a 40 per cent jump in rates per square foot (psf), though resale rates in these areas are a notch lower.
This means that premium flats that once cost Rs 15,000 to Rs 18,000 psf in Lower
Parel will now cost about Rs 25,000 psf.
The rate at Lodha’s World One, ostensibly the world’s tallest residential tower, are now as high as Rs 33,500 psf.
“I think prices have gone up by about 20 per cent on average across the city,” said Niranjan Hiranandani, managing director of Hiranandani Group. “Given the country's GDP, prices are likely to rise by a further 10 per cent by March.”