Why is that no one even bother to look at Mumbai threads these days ? lol.

12000 / sqft ? lol.

That is worse than Switzerland real estate. lol.
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  • 12000 psf is very cheap for Bombay now .. Average rates are 20k and beyond ...
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  • Originally Posted by dubyaskin
    Why is that no one even bother to look at Mumbai threads these days ? lol.

    12000 / sqft ? lol.

    That is worse than Switzerland real estate. lol.


    i read sumwhr in one of mumbai threads where sumone said "in affordable range that is 12000 rs per sq ft". this was funny as well as agonising. probably we hav lost sense of many things. in india people live in unrealistic world it seems. dreams r all we r made of, no intent of realisation of dreams
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  • In my view, affordable range should be 3-5K, 5K-8K should be semi-luxury (most so called luxury projects in mumbai will be come in this category) and luxury should cost 8K+(Currently none in mumbai)
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  • I appreciate the sentiments in this thread about affordability in Mumbai. But, unfortunately, prices are determined by what people are willing to pay for a particular thing and they are what they are. In Mumbai, there seem to be loads of rich people and investors who keep sustaining these high prices.

    I also get nervous with all this talk about a coming crash and slowdown in Mumbai real estate. While it will no doubt be good for end users, I have two apprehensions about it:
    1. If it happens, builders will just abandon under construction projects for months and years till market revives. And it is end users who have invested in these projects who will suffer most.
    2. We are at a stage where the Indian economy has had a couple of tough years. But things are starting to look up. All indications are that 2013 will be much better compared to the last two years and growth might come back to 6.5% levels. If that is indeed true, it is going to mean more money in the hands of the rich people and investors. And guess where they are going to park their money?

    We have got to take a more practical view of the situation...
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  • Originally Posted by gautam620
    I appreciate the sentiments in this thread about affordability in Mumbai. But, unfortunately, prices are determined by what people are willing to pay for a particular thing and they are what they are. In Mumbai, there seem to be loads of rich people and investors who keep sustaining these high prices.

    I also get nervous with all this talk about a coming crash and slowdown in Mumbai real estate. While it will no doubt be good for end users, I have two apprehensions about it:
    1. If it happens, builders will just abandon under construction projects for months and years till market revives. And it is end users who have invested in these projects who will suffer most.
    2. We are at a stage where the Indian economy has had a couple of tough years. But things are starting to look up. All indications are that 2013 will be much better compared to the last two years and growth might come back to 6.5% levels. If that is indeed true, it is going to mean more money in the hands of the rich people and investors. And guess where they are going to park their money?

    We have got to take a more practical view of the situation...


    Let us indeed take a more practical view of the situation.

    1. You mentioned two class of buyers. Rich end-users and investors. No arguments on the first. But the second class of investors will only buy till they see appreciation. Just as they have not been investing in equity since 2008, they can indeed stop investing in real-estate if they see a gloomy scenario. And in the last 2-3 years, they have comprised more than 50% of all sales in Mumbai market. Imagine even this supply can come into the market along with the normal new supply from builders if they feel that prices may fall.

    2. If thr is a likelihood of builders abandoning under-construction projects, why indeed should buyers be buying from them now and take the risk.

    3. With growth coming back to 6.5% next year, thr will be more money in hands of investors leading to price rises. But funny that growth falling to 5.3% currently or even projected 6.5% next year from 9% in the past does not mean less money in hands of investors and hence price correction. It either will rise 10-15% in case of a slowdown or just run-away in case of improvement. Amazing logic.
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  • Absurd prices in Mumbai have actually help spread city beyond Mumbai city limits.Thats a good thing.For the first time,Mumbai population % has reduced to less than 50 % of MMR(Mumbai Metroplitan Region).1.24 crore out of 2.5 crore.Thane district has become most populous district in whole country with 1.1 crore population.
    Also,as printed in TOI few weeks back,traditional business hub,Nariman Point,is in perpetual decline.Most commercial rental property this year was in navi Mumbai with 35% of transactions,followed by 30 % in BKC and just 1.5% in Nariman Point.
    As business districts spreading outside traditional south Mumbai ,there will be more and more growth and extension of its suburbs.
    Extremely high rates in Mumbai are good for decentralisation!
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  • Also,there seems to be lack of understanding in growth rates.Growth rate is REAL growth rate,you have to add inflation to it to get nominal growth rate.So nominal growth rate has been 14-15 % for a decade now.(GDP growth 6-8 %+inflation 7-9 %).that is why India GDP has gone up from 400 billion in 2000 to usd 1.9 trillion in 2012.check in wikipedia.property rates have gone up in accordance to GDP growth
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  • Originally Posted by Kuldeepp
    Also,there seems to be lack of understanding in growth rates.Growth rate is REAL growth rate,you have to add inflation to it to get nominal growth rate.So nominal growth rate has been 14-15 % for a decade now.(GDP growth 6-8 %+inflation 7-9 %).that is why India GDP has gone up from 400 billion in 2000 to usd 1.9 trillion in 2012.check in wikipedia.property rates have gone up in accordance to GDP growth


    this is a new theory now.
    meanwhile, even by that theory GDP has increased by 5 times since year 2000 (in 12 years). do u really think property prices hav increased 5 times ?
    they hav increased by more than 10 times. now 5 and 10 dont sound much diffrnt but when u see in context of "5 times" and "10 times" they r poles apart. so even by this theory property prices r not only over-priced or hyper-priced but r insanely absurd.
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  • Areas where prices have become 10 times should be looked into perspective.I know in borivali rates have gone up from 2000 Pfst to 12000 psft.(5-6 times)In certain areas where structural changes have happened price increase will be more.e.g Airoli which was polluted area 10 years back with no rail connectivity and bad roads.Now with suburban train operational and with lot of software companies,there has been structural change.
    Also consider salary increase in lot of sectors and salaries above 1 lakh per month are not rare now which was unheard of when I started job 12 years back.

    My point is that there is no point in just getting annoyed with the rates and not knowing the reasons.
    If you want to get invested,do your research and definitely avoid Mumbai as there is just too much premium to be paid.
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  • People are being misled about price correction hope. Waiting has always proved counter productive barring one or two years.I hear astonishing price rise stories in B towns, and amazing appreciations in places like New Greater NCR sector 572. Its happening everywhere. Yes Mumbai is expensive but offers value. If you want iphone or if you want gold you pay their price, not wait for it to correct, unless you are warrent buffett. Buying RE is not meant to be a sound investment or a cash flow prudent decision unlike several other investments you make, but the funny thing is that it inadvertently turns into one. Remember the free stock or mutual fund advice that you read in newspapers or website, wouldnt have been free if they were that valuable. Neither is this one. But use your judgement, and follow the successful
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  • iPhone is good example.when launched 6 years back it was unparallel but now face severe competition from .same as Mumbai was the only place decade ago but others are catching up and it won't provide same returns as some other places will provide just because initial price of Mumbai is far too high.e.g it will be easier to go from 5000 psft to 50000psft than going from 50000psft to 500000psft(which may never happen as it will be much higher than any other city in the world)
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  • Originally Posted by Skywalker20
    People are being misled about price correction hope. Waiting has always proved counter productive barring one or two years.I hear astonishing price rise stories in B towns, and amazing appreciations in places like New Greater NCR sector 572. Its happening everywhere. Yes Mumbai is expensive but offers value. If you want iphone or if you want gold you pay their price, not wait for it to correct, unless you are warrent buffett. Buying RE is not meant to be a sound investment or a cash flow prudent decision unlike several other investments you make, but the funny thing is that it inadvertently turns into one. Remember the free stock or mutual fund advice that you read in newspapers or website, wouldnt have been free if they were that valuable. Neither is this one. But use your judgement, and follow the successful


    It is strange that you compare iPhone with RE. First of all, I don't know of anyone who buys 2-3 iPhones and stores it so that he can get more by selling it later. And people do wait if they absolutely want to have an iPhone, they wait until a new one comes out and the old one falls by at least 30-40% of its launch price. And even if you want to sell your new iPhone without using it just after one month, you would have to sell it with at least 20% loss. How nice it would be if it were to be true also for RE ;)
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  • Originally Posted by Kuldeepp
    Areas where prices have become 10 times should be looked into perspective.I know in borivali rates have gone up from 2000 Pfst to 12000 psft.(5-6 times)In certain areas where structural changes have happened price increase will be more.e.g Airoli which was polluted area 10 years back with no rail connectivity and bad roads.Now with suburban train operational and with lot of software companies,there has been structural change.
    Also consider salary increase in lot of sectors and salaries above 1 lakh per month are not rare now which was unheard of when I started job 12 years back.

    My point is that there is no point in just getting annoyed with the rates and not knowing the reasons.
    If you want to get invested,do your research and definitely avoid Mumbai as there is just too much premium to be paid.


    we make our own reasons as per our own beliefs and our convenience.
    be rest assured if during these last 12 years prices wud hav fallen by 10 times u wud hav had even a lengthier list of reasons. its always easier in the hindsight to make lists of reasons.
    now coming back to reasoning, structure , etc etc. we shud see everything in pretext of things around us, not as per beliefs or the way we want to see. the real scenario is that 99999 out of 100000 normal citizens of this country cannot buy a "house to live in" with his own hard earned money.
    see the world around, prices r insanely more than even those in developed countries of the world,where infrastructure, living conditions and environment is atleast 1 lakh times better than what u get here for 10 times the price.
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  • n even if "salaries in lots of sectors" is more than 1 lakhs, please dont ignore other 99.99% of sectors n other 99.99% of population of india where salaries r still not above 1 lakhs. do they not hav the right to live in a house ? or does it make sense tht only those having salaries abv 1 lakh shud b in position to buy a house in a "rising" country, and that too by taking loans and channeling their salaries towards EMI's to b "proud owners" of a 2 or 3 room box surrounded by filth, because thats all u can get even if u r among those 0.001% lucky few who hav salary of 1 lakh.
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  • Originally Posted by johndoe
    It is strange that you compare iPhone with RE. First of all, I don't know of anyone who buys 2-3 iPhones and stores it so that he can get more by selling it later. And people do wait if they absolutely want to have an iPhone, they wait until a new one comes out and the old one falls by at least 30-40% of its launch price. And even if you want to sell your new iPhone without using it just after one month, you would have to sell it with at least 20% loss. How nice it would be if it were to be true also for RE ;)


    Completely agree on this rather useless elaboration. Iphone and gold was used euphemistically to illustrate how little the buyer has control over price of superior/scarce product, however much they shout from rooftop. But then important messages have a knack of getting lost
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