Maharashtra : Real Estate Prices Remain High..!.

Despite the slowdown, real estate prices remain high though slight price cuts are on offer for some projects.

A 4 day property exhibition by the Maharashtra Chambers of Housing Industry (MCHI)  held on recently offers several options. The response was mixed from buyers, whose main concern was affordability. Rates are a bit lower for some projects, but builders say they can not do much to cut prices as input costs are high.

Some developers said the trend seemed positive as buyers could book flats at relatively low prices. Rates are down by Rs. 500 to Rs. 1,000 per square feet.

Neptune Developers has priced its Bhandup property at Rs.10,500 per square feet as has Mantri group for its Goregaon property. The Acme group has kept its Kandivli project Oasis at Rs. 10,500 per square feet, the one at Andheri costs Rs.16,000.

Some premium projects, however, show prices constant. Ajmera Aeon project at Wadala costs Rs.18,500 per square feet and the minimum price of a flat is Rs. 3 crore.

Kalpataru Radiance at Goregaon (West) opened at Rs.12,771 per square feet. Sheth Creators has hiked rates for Vasant Oasis, Andheri to Rs.11,000 per square feet from Rs.9,550 per square feet the minimum cost is Rs.1.50 crore.

A 500 per square feet studio apartment at Andheri by Kumar Urban Development Ltd. costs Rs. 72 lakh.

Many builders and promoters justify the costs.

“There is no way we can reduce anything. Consumers have realised prices are not going to come down,” said Bandish Ajmera, director, Ajmera Group. TejasVyas, coordinator, MCHI (exhibitions sub Committee) said:  “Sales are picking up and we are seeing good response.”

The past 2 years have been quite tough for the industry as rates touched exorbitant levels. Besides, banks and Housing Finance Comapanies (HFCs) tightened lending norms and hiked interest rates.

Experts said even banks and HFCs and the government need to be proactive to push up sales.

 “Apart from builders / promoters reducing rates, the state needs to give incentives and banks should liberalise lending norms,” said Mrt. PrakashRohera, K Karma Realtors, a leading brokerage company. 

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