Indian Real Estate: In High Demand

                                                                                         

Mumbai Real Estate: As Ever, Tres Cher, Only For The Rich And Famous Or The Gore, Gore Banke Choras.

The limited availability of South Mumbai residences coupled with huge demand, has led prime locations in suburban areas to emerge as attractive options for potential buyers.

The South Mumbai residential market is witnessing a considerable increase in demand, in large part due to the huge influx of expatriates, as well as, restricted supply. High demand and low supply has seen to it that rental and capital values of residential property in this part of the city are going up, leading to the emergence of suburban markets as attractive viables.

A Colliers International Research Report informs there is active demand for high-end residential real estate market in Mumbai, including in places like Malabar Hill, Napean Sea Road, Cuffe Parade, Prabhadevi, Worli, Juhu, Santacruz, Bandra and Khar.

The demand for lease or sale of property in Hiranandani Gardens, Powai shot up in the third quarter of 2006, while the fourth quarter saw Bandra Kurla Complex being delighted with the development of its first high-end premium residential project that should be ready for possession in 2009.

With increasing construction activity and better amenities in Central and Suburban Mumbai (excluding Bandra / Khar), investors / end users are reconsidering these locations for housing requirements. Cuffe Parade and Malabar Hill continue to dominate other areas with the highest capital values ranging from Rs. 40,000 to 50,000 per sq. ft. Rental values also shot up, witnessing an increase that ranged from 5% to 12% in Malabar Hill, Napean Sea Road and other submarkets.

As MNCs form joint ventures with large Indian corporations and set up base in India, the expatriate traffic is on a rise, putting great upward pressure on the capital and rental markets. As well, a hike in interest rates for bank / loan borrowers has put a dent in the aspirations of the middle-income group of investing in residential property, which has resulted in a 10 – 15% drop in real estate prices in certain areas of the suburbs.

In addition, the release of mill lands and other incentives given to builders, including the occupants of old buildings being allowed to reconstruct on the old structure (better known as TDR constructions), constructions in Central and Suburban Mumbai have increased ten-fold and are expected to retain the same frenzied pace in the near future.

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Source: IndiaRealEstateblog

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