Dream home: Tinsel Town beckons you

Mumbai: If you stay in North Mumbai suburbs, the one-and-a-half-hour drive from Flora Fountain to home is the worse part of the day.

Even if you have a driver, the sheer time wasted in travel is what you hate.

Of late I am sure you have been eyeing all the wonderful skyscrapers that are doting the defunct mill land.

Not just homes, even prices are touching the sky.

The news has been dotted with Mumbai realty prices skyrocketing after the High Court had put a stay on the sale of the mill land.

Prices have gone up from anywhere between 20 per cent and 100 per cent in the past year.

With the Supreme Court judgement giving the go-ahead and releasing 150 acres of additional land into the Mumbai realty market will this scenario change.

Are the prices going to move south again?

While we have learnt about the demand supply equations in economics they do not seem to apply so simply here.

Agency Head, Colliers International, Pritam Chivukula opines, "The SC judgement has had a positive impact on realty market. With Developers planning to launch their projects in the next 2/3 months, the rate at which rentals/capital values increased over the past six months, will see a momentary flattening."

"This means the prices will not drop, but will stabilise for a specific period as developers will 'feel the waters'. This specific period will last until developers off-load approx 15-20% of their stock. Once this level is reached, the prices will once again start increasing at a faster rate," adds he.

PAGE_BREAK

So even though the supply of land has increased we cannot really expect the prices to go down.

When is the right time to buy?

So if you do want to buy that dream house on the 23rd floor that is just a 20 minutes drive from work have you missed the bus? Should you buy now or should you wait?

Executive Director, Knight Frank India, Kekoo Colah,advices, "Whether you are the actual user or an investor, the present time is as good as any to buy."

As Director, Narain Corp and President Chetan Narain - India Institute Of Real Estate sees it, "As an actual user there is little choice today. I don't see prices coming down but correction in over heated locations will happen. So look for the best bargain and buy after comparing your next best options."

What should you watch for while buying?

"If one is waiting to buy, then one should buy within the first 45-60 days of the mill projects being launched to avail the launch prices", says Chivukula.

If you are buying for end use, then you should wait a bit you will have a wider variety of projects to choose from and thus sellers in nearby areas who are holding their price will soften their stand and sell out faster.

But, as these mill lands have been bought at astronomical rates, one shouldn't expect the projects to be launched at sub market level pricing.

So in short, decision to wait should be primarily driven by greater availability of choice rather than lower pricing.

What you cannot discount is modern infrastructure, ample parking for owners and their guests, open spaces & well planned combination layouts to suit nuclear to large family needs with enough for everyone to do from kids to the elderly.

Ofcourse the sheer pleasure of living 'in town' is the driving force in most decisions.

So start hunting and bargains are going a plenty if you look around.

Drive around the area on a Sunday and have a look at the project to be launched or are underway. Surely, there is home waiting for you here with your nameplate on it.

(The author, Shalini Amarnani, is a freelancer.)