Dubai buyers give Mumbai’s pricey realty a miss

Property buyers in Dubai are given Mumbai the miss. During a property exhibition in Dubai last week, most buyers complained of high prices in Mumbai, and chose instead to scout for homes in Thane, Mira Road, Navi Mumbai and Pune, where rates are lower.

Property buyers in Dubai are given Mumbai the miss. During a property exhibition in Dubai last week, most buyers complained of high prices in Mumbai, and chose instead to scout for homes in Thane, Mira Road, Navi Mumbai and Pune, where rates are lower.

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“Rates in Mumbai have gone through the roof,” said Anil Ajvani (49) who has a home appliances business in Dubai. “It is not easy to get a decent home at affordable prices.”

Another businessman, Devinder Arora, said he wanted to book at an under-construction project at rates ranging between Rs 2,500 and Rs 4,000 per sq ft, could not find any. “I plan to invest in Navi Mumbai,” said Arora.

As the economy started looking up, developers and started hiking rates (see box).

According to leading real estate consultancy firm, Better Homes, buyers are shying away from the city due to unrealistic prices quoted by builders.

“Overseas buyers have become very price-sensitive. They are investing in areas around Mumbai,” said Ajay Tiwari, business head, Better Homes, which specialises in real estate consultancy in Dubai.Another realty firm, Nahar Builders, sold only two flats of Powai Property at Rs 6,700 per sq ft at the exhibition. Other properties found no takers.

Mantri Builders, which sold eight flats from its Goregaon project, said prices are high as land rates in Mumbai are highest “Even suburban land prices have gone up manifold,” said Sunil Mantri, chairman and managing director, Sunil Mantri Realty Limited. “We are compelled to increase rates.”