Indian Real Estate: Going Upmarket

This year, South and Central Mumbai areyear, old, well maintained buildings in prime localities
expected to witness a fair amount of premiumcommanded rates that ranged between Rs.
residential projects, as extensive construction18,000 to Rs. 28,000/sq. ft., however, some of
activity gets underway for developingthese prime buildings have now begun to
condominium style residential colonies that offercommand up to over Rs. 30,000 to Rs. 40,000
state-of-the-art amenities and will be ready forsq. ft.
occupation, within the next 12-18 months.Several projects in various stages of construction
Large four to five bedroom apartments thatin suburbs in Mumbai's north, along the Malad -
range between 4,000 - 8,000 sq. ft. (super area)Goregaon - Kandivili belt and Andheri / Powai, are
and priced at Rs. 30,000 to Rs. 40,000/sq. ft. (onexpected to be completed within the next 12 -
super area) are already on offer by numerous24 months, which will lead to stability in prices.
developers. The interest of end-users andHowever, apartments ready for immediate
investors alike has been snagged with sops, suchoccupation continue to be in short supply. With
as, the promise of staggered payment based onconsiderable commercial activity in northern and
construction stages, including the benefit ofnorth-eastern suburbs, it is anticipated that the
relatively lower prices for pre-committing to thedemand-supply gap and lack of infrastructure will
project.be a continuing limitation.
However, both south and central Mumbai continueWith demand far outweighing ready supply, rental
to face a paucity of adequate ready-to-occupyvalues are likely to rise in prime buildings in most
apartments; coupled with a clear demand for 2/3parts of Mumbai. However, prices / bookings are
4 bedroom apartments ranging between a netexpected to slow down for highly priced premium
area of 1,400 sq. ft. to 2,200 sq. ft. Aprojects under-construction, as the number of
demand-supply mismatch is the main cause ofprospective purchasers for such high value
rapid price escalation over the last quarter. Till lastapartments is limited.