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Indian Real Estate: Going Upmarket

This year, South and Central Mumbai aremaintained buildings in prime localities
expected to witness a fair amount of premiumcommanded rates that ranged between Rs.
residential projects, as extensive18,000 to Rs. 28,000/sq. ft., however, some
construction activity gets underway forof these prime buildings have now begun to
developing condominium style residentialcommand up to over Rs. 30,000 to Rs. 40,000
colonies that offer state-of-the-artsq.  ft.
amenities and will be ready for occupation,
within  the  next  12-18  months.Several projects in various stages of
construction in suburbs in Mumbai's north,
Large four to five bedroom apartments thatalong the Malad - Goregaon - Kandivili belt
range between 4,000 - 8,000 sq. ft. (superand Andheri / Powai, are expected to be
area) and priced at Rs. 30,000 to Rs. 40,000completed within the next 12 - 24 months,
sq. ft. (on super area) are already on offerwhich will lead to stability in prices.
by numerous developers. The interest ofHowever, apartments ready for immediate
end-users and investors alike has beenoccupation continue to be in short supply.
snagged with sops, such as, the promise ofWith considerable commercial activity in
staggered payment based on constructionnorthern and north-eastern suburbs, it is
stages, including the benefit of relativelyanticipated that the demand-supply gap and
lower prices for pre-committing to thelack of infrastructure will be a continuing
project.limitation.
However, both south and central MumbaiWith demand far outweighing ready supply,
continue to face a paucity of adequaterental values are likely to rise in prime
ready-to-occupy apartments; coupled with abuildings in most parts of Mumbai. However,
clear demand for 2/3/4 bedroom apartmentsprices / bookings are expected to slow down
ranging between a net area of 1,400 sq. ft.for highly priced premium projects
to 2,200 sq. ft. A demand-supply mismatch isunder-construction, as the number of
the main cause of rapid price escalation overprospective purchasers for such high value
the last quarter. Till last year, old, wellapartments is limited.



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