]]> Oberoi Constructions Pvt. Ltd is launching its most awaited projected “Oberoi Exquisite” in Goregaon East. The project is located off.Western Express Highway in Mumbai offering connectivity to most of the Central Business Districts in Mumbai and in future this project will be one of most sought after address in Mumbai as the features and facilities offered in this project are world class and Oberoi Constructions as always has left no stone unturned to make this project the finest in Mumbai.
A few Salient Features of the Project
 3 BHK – 1690 and 1820 sq.ft spacious apartments
 3 Towers of 50 Storeys each as an initial launch
 There will be total 11 Towers in the entire Oberoi Island City Complex
 The launch presently will be only upto approx Level 22
 Oberoi Woods was the first residential complex in the neighborhood with 3 Towers and which has given more than 300% returns to the Investors over a period of 5 years.
 The Oberoi Exquisite will be ready by early 2014 and hopefully it will give the Investors or Home Buyers excellent returns and mostly the Buyers/Investors should get 100% returns.
 Oberoi Constructions Pvt. Ltd is a debt free Company and one of India’s leading Real Estate Companies with an excellent track record.
 Oberoi Springs in Andheri West and Oberoi Splendor in Jogeshwari Vikhroli Link Road are the 2 properties of Oberoi Constructions which are under construction. Oberoi Springs possession is already begun and Oberoi Splendor will be ready by March 2011.
 Oberoi Exquisite will have the finest amenities in the project with lots of Gardens, Club House, Swimming Pool and most of the modern amenities ever envisaged in a modern complex.
For further booking and more details and an Investment Analysis, please feel free to mail us or call us for a site visit.
Sandeep Sadh – 9820030685 Mail – ssadh@mumbaipropertyexchange.com

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]]> The past 4 years in the real estate market will always be termed as the “Golden Period”, as these years have been the best in the past 15 years in respect of movement all across different sectors in the property market. Buyers who invested and bought properties earlier in 2004/5 have multiplied their assets and at the same time increased their net worth.

Let us go back in the memory lane again, when the year began, we all knew the markets were all time high and each location was termed as being over priced and as lot of investors had already invested through 2004 to 2007 there was little hope for them to see a major capital appreciation in the coming year and they are the ones who usually go for the first bookings at the opening prices. But 2008 compared to earlier years, saw the least of new projects announcements a lot of builders are sitting on the fence and they may launch new projects after doing a clear market research and analysis.

Then of course, we had the stock markets playing spoilt sport as the Sensex which people were used to seeing up and up only started coming down and before it was Monsoons, the entire market was in a stalemate and signs of the times were being seen as a lot of Builders gave a miss to the bids by MMRDA, Railways and a few Mill lands. We can read that liquidity crunch or the willingness to buy at a highest price was not seen here, which shows that the sentiment was weak inspite of the prime lands offered.

People thought that by Diwali the markets will have some movement, but despite various discount schemes, which most of the Buyers now know are clear marketing gimmick as before the exhibition and Diwali time most of the builders increase rates and then decrease it as a discount. So the buyers, were not fancied by the freebies given, on the contrary the markets went cold from there on and with the global melt down in the financial markets, high interest rates, political instability and the Terror Attacks in November, the markets literally came to a standstill.

Now, let us analyse, what is the current scenario, people are saying that the markets should come down by nearly 35% and you will continue to see some news articles or the other every day in a different news papers. Actually speaking, the buyer is only wanting to make a killing in today’s market condition and he is concerned, scared and he is not willing to buy at the same inflated prices.

But!!! The important question is how many builders are willing to reduce the price from their respective levels in spite of the fact they are sitting on projects which they started constructing in 2005/6 and now they have limited stocks to sell. If you review, each area and location is differently placed in Mumbai and can be termed as “Micro Markets” for example a location like Lower Parel which has been in the news since, 2004/5 when the mill lands started auction etc. now there are hardly any properties under construction in that location and a few big builders who are constructing there have started construction from nearly @6000/- psf and now reached levels of 25000 plus. Even, if the builders reduce, they will come down by 10% or so to please a client and finish the remaining flats etc. So the interesting point is that, and which will mostly happen is that the buyer will move North for his killing and unless he does not get a good deal he will not relent.

So in short, each location will have its own dynamic role and it can be seen in today’s market that not only Location, every individual Builder will have his own pricing which may be varying a lot in each location and his personal liquidity factor in the market and also how much stock he has to sell and how much can he hold on to before he starts getting a little financially strained and how much demand is there.

This means that each location can now have different pricing policy and I guess the mantra which comes out is Cash is King once again...but this mantra was not useful a few years back for the Buyers when they used to sit for hours in Builders offices to get the booking done etc, so we need to wait and watch now.

Mumbai as a city is crumbling as far as infrastructure is concerned, the property deals which are now happening and will probably happen in the first quarter would be typically need based buying as we still have to feel the impact of global recession in India and with unclear clouds of Politics hovering in the elections which are due in May and stock markets at a low we do not see major happenings in the real estate sector.

Over the next year, Mumbai as a city will hopefully have the Bandra- Worli Sea Link ready, the 2nd bridge near the domestic airport for south bound traffic may be ready by the 1st quarter as well. This will not impact too much but if everyone now is talking about affordable housing now, Where is the infrastructure? Where are the empty trains, proper roads to travel from distant places? Travelling within the city in the pathetic roads has become like a big task and the back and knee hurts now really after sitting in the car for hours together so imagine talking about affordable housing where the person has to travel from 60KMS plus to come to Mumbai.
From here onwards a lot of property prices will be determined by the way the infrastructure develops in a particular location and the connectivity to the location and the “Transparent Deals” which are a rare commodity in Mumbai today. In the recently held CNBC Real Estate awards there were two separate categories Best Ethical Practises and Best Transparent Legal Practises by a developer and guess what there was not a single developer who qualified from Mumbai, the award went to some developer in Chennai.

Real Estate development and growth mandatorily requires a healthy climate which comprises of Economic Growth, Political Stability and Infrastructure Development coupled with good governance and sops from the government as a little sweetener to all the parties concerned be it a developer or the buyer. The Indian Government last week did a little bit of movement in that front to ease the burden of the common man and reducing interest rates to fresh loans for amounts upto Rs.20,00,000/-. In my opinion, this is not enough, it is a good sign that people in the government are concerned about the development in the real estate sector but a lot has to be done before a little momentum is built.

The present market will be highly restricted to an actual buyer and an opportunity buyer who will like to see that he is getting a deal less than the market to further averse his risks, if any and I am sure with global peers reducing pricing drastically, why Mumbai should not reduce pricing. Look at Dubai, China, UK and USA markets we can learn from them pretty much and see the trends there and understand what is happening. I have been reading through lots of reports filed by investment bankers and they are all nearly predicting the same trends everywhere of prices correcting and this means that after correction the markets will gain momentum automatically. The outlook howver, remains in negative for the next 1 year to begin with and hence advice to all property buyers, do not be in a rush, do your homework well and do not hesitate to lease an apartment if you need a home as the markets will have to come down a lot to set the expectations right and no one is going to splurge any more the way it was done earlier.
Sandeep Sadh
Mumbai Property Exchange.com

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]]> The property market in Mumbai seems to go through a Mid - Life Crisis. While the requirement is still persistent, the view of a lot of seasoned experts in the business is that the prices are over valued. The question now is that who will first blip, will the builders lower their rates or they can hold on to their prices or will the buyers give in?

Please write your comments so that we can all get a share of knowledge?

Sandeep Sadh
]]> Mumbai Lease Market to be Impacted

After the Inflation jumping to 7.57% Mumbai the City of future, a known Financial Hub and the Dream City for many is in for a Rude Shock. The BMC plans to impose Property Tax upto 83.5% on residential properties and 112.5% on Commercial Properties which after rebate of 40 to 60% becomes nearly 30% of your rental income. As per the current news this is payable every 6 months by the property owner.

The BMC has taken 2 decades Old Formula of Accounting for Taxation this time around and the simple logic given so far is that they are going by the book, even if the book is 20 years old. Before coming out with these harassing policies the BMC must look at the General Interest of the public and consult professionals in this regard. This is actually a trigger point which will be responsible for the collapse of the property market in Mumbai as higher taxation, inflation, crumbling infrastructure, spiralling property prices, high interest rates etc. all together will have a Lesser Yield on Investment and property transactions done purely from an Investment perspective will take a big hit due to lesser anticipated returns owing to double taxation. If you sit down to calculate the yield after paying the overall taxes you will be totally dismayed and loose interest in such investments.

Mumbai being the Financial Capital of India, and the fastest growing city in Asia has a lot of inflow of both local Indians and Expatriates who typically come to work in Mumbai for a short span of 2-3 Years and who are always looking for rented accommodation and sign up a Leave and License agreement for any period between 1 to 3 Years generally. With BMC now planning to impose a 3 month rent as tax to the owners per year, the rents will go up by nearly 30% which is totally absurd.

This is an excerpt of a recent article published in the Times of India, which says, “Rentals at many places in the city have gone up by 100% to 200%, and yet we don’t get our share of that profit. Under the BMC Act, it is mandatory on the part of the owner to disclose the rent of their premises, but we have experienced that the taxpayers are averse to declaring the rents. Therefore, this drive will appeal to honest taxpayers to disclose the rent of their premises, which will help us arrive at a fair property tax calculation,’’ said V Radha, joint municipal commissioner.

Why should the BMC be given a share of Profit Firstly, it is the Investors or Property Owners hard earned money and they have the right to make profit and they are paying Income Tax on that? These are policies which are already 3 decades old and based on the old rent system in the good old days etc. Why cannot an Intelligent System be brought in which should be based on keeping all the Taxation both the Licensor and the Licensee are already paying and keeping in mind the present day market and future? The BMC policies are already known to be notorious by taxing year on year even if the property is not rented. There is no rationalisation on the taxation and when the owners hear the word BMC & Property Tax they want to close their doors on any transaction, one of my seasoned property investor once quoted, “God also cannot know the assessment which the BMC will do on your property”. Just yesterday, i was speaking to a Consulate and they have called off a transaction for a residential property as the owners wanted to place the onus of taxation to the Consulate. The Consulate General said, that this kind of irrational taxation will be bad for Mumbai’s reputation as a city as Companies who will want to relocate their expatriates will find it difficult to pay such higher taxation. He added, nowhere in the world taking an apartment on lease is such a task and with such higher prices and taxation it is a problem, they are already thinking of shrinking the size of expatriates in the consulate.

If the BMC spends that money on the Pot Holes improvement, Proper Roads, Pavements, Gardens, Common Amenities for masses I am sure the Owners would happily want to contribute. Look at the way, the city is maintained and with crumbling infrastructure and vision less policies for such a great City the BMC is placing itself into a one - sided High Handed body to only collect money and have proportionately less accountability and contribution to the city’s welfare. Mumbai is already one of the most expensive cities in the world to live in and to place on Record the 7th most filthiest city as well which is Thanks to the BMC. How do you expect people to pay such high rental values to survive after taxing them and what do they get in return back?

Both the Licensor and the Licensee terminate the Leave and License agreements mid-term for whatever reasons, what happens to the Tax then? With higher taxes more and more people will opt out of Mumbai and find out ways and means to circumvent taxes and therefore increase corruption in the already “Cash Rich” BMC.

If BMC has its way, Mumbai Lease Market will crash and the impact will be far greater on the Economy. The BMC and the Government should find out ways and means and take more and more property owners and individuals and Companies renting out properties in confidence before announcing any such policies. It is clearly understood by all concerned here that the BMC is looking for revenue but what it does not realise is that it cannot be done at the cost of Individuals who spend their Hard Earned money to invest in properties only to Lease out for income and they are already paying all sorts of taxes to do so. The annual return on investment on residential properties has already gone to 4% owning to higher property prices in the city. Not each location gets a great rental value and with extra tax liability the government is only looking at closing the doors for the Investors who are looking to invest in real estate. If there are no returns in the property market why should investors look at buying it and in short this will impact the sale of properties from hereon. All the mutual funds, Reits and other real estate related transactions will also be impacted.

In the past 3 Years, the rental values in Mumbai have gone drastically higher ranging from 30% to 200%. Because of a higher rental values, a lot of people started buying their own apartments as the rental values will be nearly 50% of their EMI. Inventories in Mumbai are already building up, there are more and more apartments vacant and a lot of property owners are willing to give 10% to 25% discount on the quoted prices already due to a little slow down in the economy and markets. The scare of huge taxation will also impact this further as none of the Licensor / Licensee will want to be a part of any further hike or taxation. Earlier, the Tussle used to be between the Licensor and the Licensee to get a deal done now both of them will have to unite and sit and find ways to fight out with the BMC.

Highlighted below are the Taxes which both the Licensor and the Licensee pay in any case for renting out properties, besides other expenses like maintaining the properties, painting, polishing, Annual Maintenance Contracts, Furnishings, Paying Vat etc on all house hold goods, Service Taxes on labour etc.

1. Fringe Benefit Tax payable by the Employee in case of a Company Lease – 20%
2. Service Tax – Presently only on Commercial Property – 12.36%
3. Property Tax on Leasing/Licensing (more in commercial property)
4. Stamp Duty and Registration Fees
5. Income Tax
6. Society Outgoings/Non – Occupancy Charges paid by the Owners
7. Municipal Taxes on Property in General

This typically means, that the BMC wants to penalise the Investors who invest in real estate.

Sandeep Sadh
Mumbai Property Exchange

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]]> High Expectations from the Budget This Year

The booming real estate market in India coupled with strong economical growth is truly a success story. The Government should further reform and tighten norms for the real estate sector to protect the interests of the Investors and actual home buyers and NRI’s who are looking to invest in India in a big manner still and also certain reforms need to made to control to ensure low quality housing pricing to appeal to the masses. A lot of proposals by the State and Central Governments are announced every year, but only a few see the light of the day, the Government should have a vision which is long term for the sole benefits of the Housing and Commercial Sector as improper policies in this sector can only reflect negative movement.

With Union Budget round the corner, the Government this year should make its Policies firm and more centric to the Low Cost Housing for the actual consumer and Strict but yet not Stern for the Developers. The Developers and Builders in India have been having a field day with no control over built up and carpet areas, illegal property documents and constructions, possession related issues and many more illegal entanglements. In Mumbai rules and regulations for Re-Development of old buildings and the Slum Rehabilitation should be made more lucrative for Investors and Builders as this is the only way the city can be cleansed.
The Government this year should act in ways wherein the Low Cost Housing and Actual Consumers Interest is protected First and Foremost and a few expectations which one could have from the budgets are as follows:

1. Continuation of Section 80 IB of the Income Tax, this is an act which gives tax relief to the Builders for construction of units which is less than 1000 sq.ft built up in metros and the benefits under this section had come to an end a last year. A lot of builders have created houses under this scheme and consumers are benefited through the mass construction. The only problem here is that while the builder gets the tax relief there is nothing passed on to the consumer and as such it has become, “The Apple of the Eye” for the Builders. A majority of home buyers are unaware of this tax respite which the government had given to the Builders. The Government should continue giving this subsidy to the Builders as this will encourage them to make more middle class and affordable homes and it also will support the 10th Plan estimate of the Government where the shortage of housing units is expected to be in the range of 22.4 Million Sq.ft, This benefit hence, is the need of the hour but with some rider that the benefit is mandatorily passed on to the consumer.

2. Under Section 24 of the Income Tax, the exemption of the interest alone on the Home Loan should go up from the present Rs.1.50 Lacs to at least Rs.3.00 Lacs, this is suggested keeping in mind the average ticket size of the price of the apartment has grown 200% over the past few years. Also, the benefit of tax should be given from the date of booking of the property and not from the possession.

3. TDS Deduction on housing rental income for Individual Home Owners should be brought down from 16.83% to 10% and especially for NRI’s, a Flat Slab of 15% or a Tax Holiday of initial 3 years should be considered on rental income as they have invested in India and this is their only income in India against the property. This will boost in NRI Investment in the country and in the real estate sector as the NRI’s will not look at any other countries like Dubai etc for returns on their Investment. Also this will rationalise the prices of rentals in Mumbai and other Metros and more and more people will be willing to easily begin renting out properties and also the demand and supply situation will improve as more and more incentives are given and passed on to both the licensor and the licensee. A lot of NRI’s lock up their apartments for fear of higher taxation and an upfront deduction of TDS more than 30% and which effects there Rate of Return. Further, a standard deduction of 30% towards maintenance should be improved to 40% for local residents and 50% for NRI houses.

4. Stamp Duty charges should be reduced down to 2.5% from the current 5% as this will bring in more transactions and the revenue will increase for the Government. Since, the value of transactions has gone up the government is in any case being benefited.

5. The government should issue look at the interest given on bonds to be linked to Bank Interest Rates on Fixed Deposits. A lot of property owners still are conservative and prefer to invest their money in Capital Gain bonds and earn living out of the same. This specially is extremely helpful to elderly in ensuring their safety for future and it also has a social impact.

6. The buyers should be allowed to cross purchasing like one should be allowed to invest in Residential Properties from the Sale of Commercial Properties and from the Amounts Received from the Sale of Commercial Properties to Purchase of Residential Properties. Also buyers should be allowed to investment in both Commercial and Residential properties from the proceeds of one single property so that a good portfolio for the property buyers/investors can be built out.

7. Government should take more steps to curb Black Money in the Land Deals, as if a cash transaction begins from the root it will have a cascading effect till the end. A full Cheque Transaction will automatically yield in more money flowing out of Bank Accounts than from hidden lockers.

8. Presently, a lot of builders are not making 1 BHK apartments across the city in Mumbai especially, and special incentive should be given to builders to make 1 BHK apartments less than 400 sq.ft Carpet Area. These smaller and affordable apartments are the life lines for a lot of middle class people who have to be by default in a particular location and because of the non availability they have to go to other locations creating an imbalance.

9. Fringe Benefit Tax for Corporate Employees for renting out properties should be reduced from the Current 20% to 5% as the Corporate Employees and Executives in any case have an option to get into an Individual lease without paying FBT. If the taxes are not heavy people will happily pay them and especially corporate incomes are transparent and hence they should be given incentive which is well deserved.

10. Individuals, Companies, Employees of Multi National Companies should be given 100% tax exemption for the rent paid towards taking the House on Leave and License/Lease basis. This will help people take a decision to lease the properties and avail tax benefits if they cannot afford to buy the properties. This will encourage people to opt for leasing more and more which in turn will help curb migration.

11. Owners renting out their properties for a minimum lock period from both sides for 3 years with no right of termination to either parties and built in fixed escalations should be given Tax incentive, as with this people will start getting into the habit of at least changing their houses once in 3 years.

12. FSI should be increased within city limits with immediate effect to bring down real estate prices and builders should be strictly made to create the required infrastructure to meet the demand for water, electricity, parking and sewage system by using innovative and latest methods available.

13. CRZ should be further rationalized as a lot of prime properties are stuck because of this and because of the basic character available on the Sea Front, these properties become premium and because of the shortage it is becoming more expensive.

14. Incentive in the form of Higher FSI should be given to Builders looking who are looking to Re-Develop Housing Societies, As by merely paying higher prices for re-development the prices of real estate are only sky rocketing and unaffordable.

15. Buyers who buy real estate should be allowed to Exit/Sell after a span of 2 years with a lesser tax slab so that it becomes easier for them to exit and this way the black money can also be curbed. Artificial shortage of property is created and prices are hiked because of the Sellers inability to sell within a short span and pay higher tax.

16. Real Estate Brokers/Agents should be given proper Licensing to practice real estate business and by doing so that there will be a decline of unscrupulous transactions and there will be a sense of transparent transactions.

17. Benefits to be given to developers who adopt Area Management Schemes in and around their complexes for beautification and development of the area and keeping the location neat and clean.

18. Ratings to Property Developers to be made mandatory by Government and a Regulatory body should in Real Estate to keep a vigil on the activities of builders who create smaller dwellings of less than 100 units a year.

19. Code of Ethics for the real estate developers and agents to be formed for a better future and professional services.

20. Property Taxes to be rationalized all across for leasing both residential and commercial properties.

21. IT and ITes benefits with regards to STPI to continue but with lesser red tape.

22. Commercial and Retail Premises given to Banks/ATM’s should be exempted from Property Tax as they are given for longer periods of time and lesser escalations in the license fees.

Construction activity is a Big Economy Driver and any positive step towards the interest and welfare of the small consumer shall have a Macro impact overall on the Economy. We require Policy Changes which will further strengthen and fortify the Growth of the Economy in the coming year and with the able leadership of our Prime Minister Dr. Manmohan Singh, we shall hopefully see a “New Awakening in the Government” and it’s Far and Deep Sight in understanding and implementing policies this budget.

Sandeep Sadh
CEO – Mumbai Property Exchange.com

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]]> Has the increase in profits in the Stock Markets has lead to the prices what they are today? As people who have made easy money in the stock markets over the past few years, are easily able to buy properties offered to them at what ever prices prevalent without contesting and thus the markets have reached this level.

Please send your reviews in this regard.

Thanks
Sandeep Sadh

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]]> We invite reviews from our clients, members and visitors to our website as to what they feel about the proeprty market in 2008. Please feel free to voice your concerns in regards to infrastructure, and if the markets will be flat in 2008 or if the pace of rate increases will be the same as what it was in 2006-7.

Look forward to receiving your views so that others can also benefit.

Regards,

Sandeep Sadh
CEO,
Mumbai Property Exchange.com
ssadh@mumbaipropertyexchange.com

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]]> The Maharashtra Government finally has decided to scrap the ULC and after a few years we have seen demonstration of Political Will despite the opposition from the Shiv Sena which has been voicing frail concerns and not being practical about the matter.

Out of the 52 Clearances required by a Builder Finally the auspicious figure of 51 Remain and i guess, to bring them down further is a battle of sorts as our Government still does not have a vision and what they can do to make this City better then what it is today.

Many are thinking with ULC gone, there will be supply in abundance of at least the land and with Newspaper Headlines of 17000 Acres etc. to be freed, it will be intersting to see how much really comes out in the open market for sale and how soon.

The markets may be gripped for the next few weeks with this Hot News but there is more than this will be happening in Real Life. People if they go to buy homes in builder offices today will not get any reduction, re-sale prices will not come down, besides speculation and heavy head lines and enough footage on the small screens of NDTV, CNBC etc. will be eaten up by Builders and Industry Experts.

One must understand Ground Realties before taking into consideration the impact of this decision which will be more felt in further suburbs, outside Mumbai and 2 tier and 3 tier cities. Also, a lot of land is still under forced or framed litigation which needs to come out and it will be interesting once again to see a sudden eruption of a new plot of land from the centre of the city which was long hidden.

Buyers looking to buy property today should not worry much as if you need a home today, you need it now, you cannot wait endlessly to see what transpires hereinafter.

The markets may temporarily stabilise as it was already due to post the Diwali Frenzy and the Builders have already escalated rates all across Mumbai, Thane and Navi Mumbai.

I guess, the only respite here is that the flat buyers may not have to do multiple agreements for projects which required the mandatory ULC rules applicable.

Sandeep Sadh
CEO
Mumbai Property Exchange.com

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]]> I saw this interesting piece on line, we are definitely going the US way and very soon we will be all in the clutches of Electronic Debts...

I invite comments on this from our viewers....Rgds Sandeep Sadh

NEW DELHI: Indians seem to be living way beyond their means. An extensive survey has found that more and more households seem to be borrowing not for creating assets like building a house or buying a car, but to meet consumption needs ranging from food, transport and medical bills to even repaying loans.

Consumers using credit facilities, probably credit cards, for purchasing fuel and renovating their houses constitute the biggest chunk of the borrowings, a soon-to-be released survey by National Council for Applied Economic Research and Max New York Life Insurance said.

The findings confirm the trend towards urban India's transformation into a consumerist society with diminished stigma associated with debt. Thus, while housing loan business may be big in terms of value but in terms of number of loans, it is still the odd renovation expenditure or a loan to buy jewellery at the time of a weddings that dominates.

Also, while banks may be pestering you with calls offering a variety of loans, many urban households don't mind tapping the much-maligned moneylender or friends and relatives to borrow for meeting routine expenses.

Though only 7.2% of urban households borrow from moneylenders, compared to nearly 21% in rural areas, the figure is significant because of the widening institutionalised credit bouquet. Then again, one-third of city borrowers who approach moneylenders do so for meeting routine expenses, the Indian Financial Protection Survey which visited 63,000 households said. In villages the number is a little lower at 25%.
For Indian households, food makes up over half the household budget, followed by transport (10%) and education (7%). Urban households spend 45% of their income on food while the figure for rural households is 55%.
Surprisingly, spending patterns in urban and rural India are more or less similar, with education being the only major point of difference.

Even the spend on durables in rural areas, in what marks good news for white goods companies, has caught up with the pattern in cities. Though 7% of the household spending is on education, only 1.5% of the families have borrowed to finance education. For this purpose, banks, with a share of 19%, are the most important source.

In rural areas, 36% of the households borrowed from friends and relatives to meet education-related expenses.

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]]> I am inviting all our Members to write their Comments and Views on the increasing prices in Mumbai and how they feel about investments and Mumbai as a city on the whole for their future from the perspective of growth, quality of life, living with traffic, pollution etc.

Sandeep Sadh

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]]> Anonymous Anonymous]]> Anonymous Real Estate Gurgao]]> Anonymous Shekhar Sachdev]]> Anonymous Lalitha Narayan]]> Anonymous Sohan Madnani]]> Anonymous Anonymous]]> on my blog
http://sanghviheights.blogspot.com. Please do visit in case u are interested in the property]]> Anonymous Rohit Sharma]]> Anonymous Rohit Sharma]]> Cheapest Rates
Log on to
http://indian-realestate.blogspot.com]]> Anonymous Rajan karmarkar]]> Anonymous Sanjay Vora]]> In the coming months demand will slow down and prices to crash.]]> Anonymous Magan Dedhia]]> Anonymous Anonymous]]> write at samitatoon@yahoo.com]]> Anonymous Anonymous]]> write at samitatoon@yahoo.com]]> Anonymous Anonymous]]> write at samitatoon@yahoo.com]]> Anonymous sashi]]> Anonymous sashi]]> Anonymous Nayan Dedhia]]> Anonymous Subrata B]]> Anonymous Anonymous]]> Higher inflation and interest rates contibute further. Investors as well as real end users are advised to wait for six more months before making any commitments as the prices will nose dive till end of 2008.]]> Anonymous Anonymous]]> Anonymous Anonymous]]> Anonymous Anonymous]]> Anonymous Anonymous]]> Anonymous prakash]]> Anonymous Murali Dasan]]> Anonymous Bul]]> Construction cost @ Rs.1250 per sq. ft.
+ Land Cost @ Rs.2500 per sq. ft. (If Land costs is @ Rs.5000 per sq. ft. - i.e. in good location)
+ Rs.500 per Sq. ft. is Admn. cost, Professional charges etc.
+ Rs.250 is License Fees etc.
Therefore the cost per square feet of an apartment is
@ Rs.1250+Rs.2500+500+250
= Rs.4500 per Sq. Ft.]]> Anonymous Ranjan Dasgupta]]>
I think some greedy builders speculate the prices by bannering 'SOLD OUT' for artificial increase in demand.]]> Anonymous Vinayak Shenoy]]>
If these kind of builders ask worthless high price , then buyers need to reject them.]]> Anonymous Anonymous]]> Property developers fear that rates may decline as demand not quite like in 2007. High interest rates and inflation make buyers stay away. Resale flat prices will see correction too.]]> Anonymous Anonymous]]> Thanks, Jitendra]]> Anonymous Anonymous]]> Thanks, Jitendra]]> Anonymous Anonymous]]> Thanks, Jitendra]]> Anonymous Anonymous]]> Anonymous Naren Tamhane]]> Anonymous Anonymous]]>
Property prices in Panvel's new projects at the moment is on the higher side and market may stay stagnant for quite a long time.]]> Anonymous Hiten Pandya]]> On the other hand,buyers would like to wait and watch further as the prices have started showing signs of slow down. But as demand slows, builders do not want to start new projects to keep demand intact..Anyway, one thing is sure that Mumbai property market has stabilised.]]> Anonymous Anonymous]]> Definitely, a year of upper hand to new flat buyers.]]> Anonymous sumit sharma]]> should I sell the flat now c=because may be the rates will go down in future]]> Anonymous sumit sharma]]> should I sell the flat now because may be the rates will go down in future]]> Anonymous sumit sharma]]> should I sell the flat now because may be the rates will go down in future]]> Anonymous Anonymous]]> Anonymous Prakash, AbuDhabi]]> Why the land cost you have considered is 2500? (sorry). last month in Times of India Govt of maharashtra said that the revenues they get from selling land is negligible (inspite of receiving thosands of crores rec'd from private builders as published in the regional newspapers). and they are publishing that land cost is minimal 500 to 2000(max) per sq ft
Where this money is going? God only knows


Comment by: Bul - May 03, 2008, 6:31 AM

Residential Property costing is as follows:
Construction cost @ Rs.1250 per sq. ft.
+ Land Cost @ Rs.2500 per sq. ft. (If Land costs is @ Rs.5000 per sq. ft. - i.e. in good location)]]>