25th November, 2024 :
Jammu | Cuttack | Ludhiana | Shimla | Kolkata | Rajkot | Hyderabad | Guwahati | Chennai | Patna | more...
|
Faster, smoother travel modes send property prices soaring in Mumbai Date : Jan 6, 2015
MUMBAI: Four new transport infrastructure projects in the suburbs have driven up property prices in areas around them in the past two years.
The Eastern Freeway, the Andheri-Ghatkopar metro rail, the mono rail and the Santa Cruz-Chembur Link Road have led to an upshot in rates in Chembur, Ghatkopar, Kanjurmarg and parts of Wadala. Property watchers say the increase is between 15% and 20% a year in these areas. Mumbai's average property hike is around 7% to 12% per annum. Siddharth Sharma, a Chembur resident, said that in Subhash Nagar colony where he stays, the rate has suddenly shot up from Rs 14,000 to Rs 18,000 a sq foot over the past 18 months. Some builders are quoting as high as Rs 22,000 a sq ft in upcoming projects. "Sellers demand ridiculous rates ever since the Eastern Freeway opened, cutting down travel time to south Mumbai to barely 20 minutes. But buyers are not biting yet," he said. Rents, too, have increased from Rs 17,000 to Rs 22,000 a month for a 1BHK flat within the past one year. In cities across the world, homes near public transit and high speed road networks have always commanded a premium. New York-based urban critic Roberta Brandes Gratz said property, historically, has always been more valuable near transit zones. "In NYC, properties next to subways fetch the highest," she told TOI. "Since different cities and communities started rebuilding transit lines, development along those lines, especially retail and commercial, has been happening. And within walking distance are residential communities. People want to walk to stations," she added.  Several experts here, though, have warned that Mumbai's property market has always been highly speculative. Builders artificially jack up rates although there are few sales in their projects. Several developers also entice customers by touting the proximity of these new transport links to their housing projects. In fact, in the corridors of power, there have been frequent murmurs of how the city's planning authority deliberately chalks out mass transport projects passing through areas where influential builders hold large chunks of real estate. Sharma added that Chembur is now a "happening place" as some of the popular restaurants in Bandra (West) recently opened their branches in his neighbourhood. Manohar Shroff of Shivam Builders claimed demand is good in Chembur because of the new infrastructure projects. "Areas like Diamond Garden, Sindhi Society and Lal Dongar, besides Deonar and Govandi, are fetching good prices. The new Sion-Panvel Expressway is also a key factor for the sudden interest in these areas," he said. A number of developers have entered Chembur, including Supreme Group, Sun Vision group, Ekta World, Hiranandani, Godrej, RNA and Omkar.  "Infrastructure projects are known to add new zeal to real estate markets in the surroundings," said Gulam Zia, executive director, Knight Frank (India). "The Eastern Freeway led to prices zooming by more than 100% in the past five years in the Wadala-Sewri belt. Similarly, the Jogeshwari-Vikhroli Link Road pushed up prices in the Goregaon-Jogeshwari region while the new metro increased rates in Andheri and Ghatkopar markets," he said. "However, a well-planned city with physical infrastructure in place keeps real estate price appreciation under check simply because of abundant availability of well-connected land. Ahmedabad and Hyderabad are good examples. Mumbai, with its infrastructure falling way behind its actual needs, keeps behaving erratically to the addition of every new piece of infrastructure," added Zia. Ramesh Nair, COO of Jones Lang Lasalle India, said Mumbai's overall property prices increase on an average by 7% to 12% a year. But rates in locations near infrastructure projects are increasing by 15% to 20%. "The biggest beneficiaries are Chembur, Kanjurmarg and Ghatkopar. Everyone now talks about the eastern suburbs," he said. Kanjurmarg, which had a price band of Rs 8,000 to Rs 9,000 a sq ft three years ago, now commands Rs 13,000 to Rs 14,000 a sq ft. Nair, though, warned that any rise of more than 15% per year will not last. "It will stabilize or go through a correction." Nair added that there has already been a jump of close to 25% in Chembur's property prices, an impact attributed to the cumulative effect of Eastern Freeway, monorail, metro and now SCLR. Pankaj Kapoor of property research firm Liases Foras said he considers this "an over-exuberance in prices. Having said that, price is a function of convenience and demography. Before the Freeway came up, Chembur was equivalent to Kandivli and Goregaon. Today, Chembur has become the pivotal point, a gateway to Navi Mumbai and south Mumbai". Kapoor added that the Chembur property market is largely investor-driven and speculative. "We have not seen transactions, although some builders quote as high as Rs 23,000 a sq ft. Finished projects, too, have unsold stock." Housing expert Chandrashekhar Prabhu said any new public transportation system changes the complexion of the locality. "But it also means more footfalls and more congestion in that area," he said and added that buildings close to Andheri, Bandra and Khar stations fetch much lower prices than those a little far away from these stations. Prabhu describes the price increase around infrastructure projects as "temporary euphoria. Genuine sales are few. Builders are creating this euphoria so that foreign investors can pump in more money into their projects." Mumbai-based urbanist and architect Prasad Shetty said these infrastructure projects are helping drive the speculative real estate market. "They will push up land prices. It will be strategic mistake if we do not provide affordable housing along these corridors," he said.
Source And Courtsey By :-http://timesofindia.indiatimes.com/business/india-business/Faster-smoother-travel-modes-send-property-prices-soaring-in-Mumbai/articleshow/45766992.cms?
|
  
    |
|||||||||
© Copyright 2010 - 2012, All Rights Reserved - Reality Infomedia Private Limited.
www.69acres.in | Privacy Policy | Terms & Conditions | Disclaimer
All trademarks, logos and names etc are properties of their respective owners. No part of this website may be reproduced without our written permission.
