Property rates zoom up to pre-economic slowdown range, making it a Happy Diwali for builders
Property rates zoom up to u00a0pre-economic slowdown range, making it a Happy Diwali for builders
It's good news for builders and bad news for buyers this Diwali. With the increase in real estate sales over the past two months, and especially since Dussehra, property prices have been steadily escalating.
What this means for you is that rates have now almost recovered to the pre-recession era prices, say brokers and builders.
Luxury home: 50%
According to Vijay Khandari of B Khandari Associates, a Bandra-based real estate brokerage firm, in the last one month alone more than 50 flats ranging between Rs 7 crore and Rs 14 crore have been sold in the western suburbs.
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The rates in this segment had dropped by almost 50% during the slowdown. Prices in prime areas like Carter Road that were at Rs 35,000 per sq ft even a month ago have now gone up to Rs 50,000 per sq ft.
High and middle-income home: 30%
Sangeet Kumar, another real estate broker, said, "Premium projects [3-BHK and 2-BHK] are in demand and buyers are once again coming out, especially the fence sitters."
According to another broker, a seller was even ready to sell a three-BHK flat in Bandra for Rs 3.5 crore, which is the pre-recession rate. But a few weeks ago the flat went for Rs 4.5 crore.
Said a builder, "The prices in this range have increased by 30 per cent all areas.
There is an increase in the sales of residential flats and this is all because of the revival in the overall market." The rates in this segment had dropped by 30% during the slowdown.
Affordable home: 20%
The same kind of recovery has been seen in this segment too.
Sunny Bijlani, director, Supreme Builders, said, "The prices have been seeing an upward trend over the past few days and buyers are coming in. Sales have risen by over 20 per cent in comparison to what it was earlier."
Supreme Builders has projects all over Mumbai.
However, warned Sangeet Kumar, "The buyers will only remain in the market if the prices remain the same."
Added another builder, "Nothing can be said about the future."
During Recession...
During the economic slowdown, the percentage fall in the residential market reached up to 50 per cent in prime localities.
During Gudipadwa (April), the rates rose by u00a0five-10 per cent, but fell again with salary cuts and lay offs, Then in May, after the UPA government came back to power, the market saw a u00a0further drop of nearly 10 per cent.
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But it didn't last long. u00a0And once business started picking up, the momentum stayed.
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