If you are considering buying a flat in relatively inexpensive Thane or Navi Mumbai, you better act fast.
While a recent study has found that real estate prices are rising faster in Mumbai than in any other city in India, Thane, Pune and Navi Mumbai are not far behind, taking second, third and fourth place respectively.
Experts say the rising cost of real estate here is a direct result of Mumbai’s soaring prices, which are driving people to move to or invest in these nearby cities.
Prices in the affordable housing segment (flats costing Rs 5 lakh to Rs 30 lakh) in Mumbai have risen by 32 per cent over the six months between July 2009 and January 2010.
In Thane, affordable homes have become dearer by 24 per cent, while Pune and Navi Mumbai have seen price rises of 10 and 9 per cent respectively.
The price appreciation study was conducted by real-estate research agency PropEquity and covered 13 cities across India, including Gurgaon, Bangalore and Hyderabad.
Delhi was not covered due to lack of housing stock and construction activity there.
In the mid-market segment (flats costing Rs 30 lakh to Rs 75 lakh), price appreciation has been the highest in Thane (14 per cent), followed by Navi Mumbai (13 per cent).
Thane and Navi Mumbai also occupied the top two spots in the premium housing segment (homes costing more than Rs 75 lakh).
While the price rise is bad news for prospective home-buyers, property investors have seen a significant appreciation in their investments.
“I cannot comment on this report but prices in Mumbai have definitely gone up sharply,” said Niranjan Hiranandani, managing director of Hiranandani Constructions. “This is primarily due to very high demand from buyers and lack of supply in Mumbai. The government is doing so much disservice to the sector by imposing more taxes that prices are bound to rise further. Prices will also rise if the economic growth continues.”
Added Nirmal Lifestyle CMD Dharmesh Jain: “Prices are rising here because there is a genuine volume problem. Unless new land mass is created, prices will rise further. The Mumbai market also has more strength and deeper pockets.”