MCHI exhibition: Mumbai prices riding high :: IIFL

Visit http://indiaer.blogspot.com/ for complete details �� ��


MCHI exhibition: Mumbai prices riding high
We attended a property exhibition organised by Maharashtra
Chamber of Housing Industry (MCHI), with participation by 50+
developers and a number of housing-finance companies. Key
takeaways from our visit:
• Most developers have increased prices by 10-30% in the past six
months. This is after 20-40% price increases in the period
October 2009–April 2010.
• Turnout at the exhibition was thinner compared to earlier MCHI
exhibitions. Apartments transacted were also fewer. Minimum
apartment costs in Mumbai have reached Rs8m–10m.
• There was increased participation from new developers with
limited track record in Mumbai, who showcased their projects
(primarily standalone buildings/ buildings in outskirts of
Mumbai).
• Home-loan rates for the major housing finance companies were
in the 8.0-8.5% (floating) range—roughly the same as in April
2010. Some companies were advertising festive rates/ lower
processing fees.
We attended a Mumbai property exhibition organised by Maharashtra
MCHI. Almost 50+ developers showcased their projects, and a number
of housing-finance companies participated. Key takeaways from our
visit:
• Prices in Mumbai remain strong: Across all the major micromarkets,
prices have risen by 10-30% since April 2010. This is after
the 20-40% increases in the period October 2009–April 2010. For
example, prices in Borivli, a western suburb in Mumbai, are currently
at Rs8,000-11,000p sq ft, up from last year’s Rs6,000–8,000p sq ft.