68 percent flats in Mumbai cost over Rs 1 crore: Liases and Foras Study

According to a study conducted by Liases and Foras, a real estate research firm, low cost (Affordable) housing in Mumbai is more of a myth than reality if a recent study is to be believed. Only 2% of flats available in the city cost between Rs 25 lakh -50 lakh,  Most of these 1 B H K houses are located in the far-flung areas of the city such as Marol and Saki Naka and are surrounded by filth and slums.

Mr. Pankaj Kapoor, MD, Liases and Foras said, “The average cost of a flat was Rs 27 lakh in 2001. It is almost Rs 2.34 crore now. Flat prices have gone up 10 times in the past 10 years. There were 55% slums because of unaffordable houses 10 years ago. The figure is now 70% If the prices do not come down, more slums will mushroom in the city”

Mr. Pankaj Kapoor, MD, Liases and Foras

''The houses which fall in the Rs 25-50 lakh bracket find no takers as they are located at neglected areas like Saki Naka and Marol in Andheri (East). Who will buy 500 sq. ft houses by paying Rs. 50 lakh in these areas. People would rather stay in a rented place close to their office. If a person earns Rs. 20 lakh - Rs.25 lakh annually, he/she would want a house in greater Mumbai to suit his lifestyle and needs. But a house in that zone costs above Rs. 2 crore and is beyond his budget. The other option is to move to the distant suburbs such as Panvel and Kalyan. But he won’t buy a house there.There is a mismatch of aspirations and affordability which has created an imbalance in the real estate sector." Mr. Pankaj Kapoor also said


Highlights of   Liases and Foras Study

* A whopping 36,000 flats have not been sold as 30% of flats in Mumbai cost between Rs 50 lakh and Rs 1 crore;  38% fall in the Rs 1-2 crore bracket while the remaining 30% cost over Rs 2 crore. These include 2 B H K &  3 B H K flats in posh areas of the city.

* The average price of a flat in greater Mumbai is Rs 2.34 crore, up from Rs 2.14 crore past year.

* The figure for the Mumbai metropolitan region (Thane, Panvel, etc) is Rs 1.4 crore compared to Rs 87 lakh past year.

About Liases Foras..!. 

Founded in the year 1999, Liases Foras, a non-brokerage firm, has been a focused researcher in the field of real estate.
Liases Foras,
9, Amrit Kutir, S.N.Marg,
Andheri(E), Mumbai-400 069.
phone :   91-22-26841555, 91-22-26841222,  91-22-26841248
E-Mail : contact@liasesforas.com

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