Affordable houses in Delhi, Mumbai to cost 15% more

Written by Mona Mehta | Mumbai | Updated: Oct 4 2009, 04:41am hrs
Buoyed by higher demand, prices of affordable houses on the outskirts of Mumbai and Delhi are set to surge nearly 15% over the next six months to a year. Among Mumbai suburbs, the hotspots include Panvel, Badlapur, Khargar, Virar and Vasai. Most builders and property dealers FE spoke to were bullish that at least 50% of enquires would be converted into sales within a year. This includes 5,000 apartments on offer in Panvel, 4,000 in Virar and Vasai as well as 3,500 apartments in Badlapur.

Lalit Kumar Jain, chairman, Kumar Builders said, Apart from Mumbai, certain suburbs of Delhi such as Gurgaon, Manesar, Sonepath, Panipat, Yamunapar as well as Faridabad and Ghaziabad have recently started witnessing price hikes of about 15% for affordable properties. This is due to rising demand for properties and the stabilisation in the real estate market.

On his companys efforts in the outskirts of Mumbai, Siddhi Bhagat, general manager operations, Arihant Universal told FE, We are launching Arihant Arham project in Panvel where a 590 sq. feet 1 BHK apartment will be offered at Rs 12 lakh and 875 sq ft 2 BHK apartment at Rs 18.5 lakh. At Panvel, we plan to offer 400 such apartments that will be ready for possession by next Diwali. Our upcoming Arihant Aksh in Badlapur will be offered at Rs 11 lakh for 615 sq ft 1 BHK and Rs 17 lakh for 900 sq ft 2 BHK apartment. This project will be ready for possession in the next year-and-a half.

Bhagat added that during October 2008, the prices of real estate properties stood at Rs 3,900 per sq ft in extended suburbs which fell to Rs 3,200 between January to March 2009 due to economic slowdown but again witnessed spurt in prices upto a level of Rs 3,900 per sq ft in the first and the second quarters of FY 2010.

An official from Sheth Developers said that with real estate sector witnessing revival, more housing projects are expected to come up in affordable segment in the next two years. Hence, this is the right time to buy second home properties in extended suburbs.

Like most other developer participants at the ongoing Maharashtra chamber of housing industry (MCHI) property exhibition in Mumbai, an official from Hiranandani Constructions said that as compared to the previous corresponding period where MCHI witnessed minimal sales conversion due to economic slowdown, this years MCHI is expected to attract more footfalls and we expect atleast 25% to 40% sales conversion. As many as 75 real estate developers are showcasing their properties located in Mumbai, Navi Mumbai and Pune.

According to Pravin Doshi, president MCHI, As the festive season begins, we would like to offer an opportunity to the thousands of prospective home buyers to buy the house that suits their requirements from the properties being displayed at the exhibition. Also on offer from prominent housing finance companies such as IDBI bank's offer of ultra flexible home loans where home buyers have an option to start paying EMIs only after one has taken possession of a new home with no processing fees and a zero balance savings account.