Ab...

FIat Kharido
A Unique Concept By
O% Interest
RHPL 3071 7788
H|n. Rs.25,000|- |ncrease from 15th Aug.'12
28k FI at : 8s.18 Lacs
0% luge 3av|rg
0r lrleresl Cosl
3|rp|e
0ocurerlal|or
8ar| Loar
A|so Poss|o|e | nt er est
NAIGAON- E
MEGA CITY OF 152 BLDG.


d
a
m
W
W
W
.
a

n
e

a
r
.
c
o
m 8s.6 Lacs
0n 8ookIn
8s.6 Lacs 0n Fossn.
Vore l|ar 30 Prl.
or Possr. oa|arce
Friday, April 20, 2012
MiD DAY, Mumbai
ON
MY
MIND
GIVEN THAT MUMBAI IS THE FINANCIAL LIFELINE OF
India, the money invested back into Mumbai itself is shockingly
meagre. If you compare Mumbai with the other financial capitals in
the world, you will find that in spite of paying humongous taxes, the
city is just getting worse by the day. The city cant provide basic
housing, food and clothing to its residents. With the kind of taxes
that the 2012 budget has imposed on the city dwellers, I think
Mumbais downfall is near. All the major industries are shifting
their base from Maharashtra to the more business-friendly states.
Even in real estate, this shift has begun. In the last two years, the
government has given clearance to hardly any projects, increasing
the scarcity of flats leading to price-hike. Also, with the government
delaying the project approvals, the burden has increased over those
builders who have taken loans frombanks or investors to start those
projects. So, when the projects are approved, the first thing that a
builder does is, he adds the losses he incurred during the waiting
period, adds his companys working cost for the next five years, and
then sells the flats. This increases the property price by three-folds.
We just need a single-windowclearance leading to lesser corrup-
tion and faster work.
We need one window system
Dharmesh Shah, director, Unicorn Global
Homes touching price highs
RAZVIN NAMDARIAN
WE ALWAYS KNEW BUYING
a home in Mumbai was expen-
sive; now we know how
expensive. Thanks to a report by
Knight Frank LLP, an interna-
tional property consultancy, it
would take an average citizen
308.1 years to buy a 100-
square-metre luxury or a
high-end apartment in Indias
financial capital. These numbers
are based on an analysis of real
estate with the current wages.
This is no surprise except for the
astounding idea of having
to work for three centuries
to own your own home. HPs
finds out the affordability of
Mumbai homes:
Basically unaffordable
The report speaks only of a
high-end or luxury home. But
for the middle-class folk in the
rat race, even a basic 1BHK in
the Mumbai Metropolitan
Region requires a lot of plan-
ning and monthly budgeting.
Home loans can only do so
much for a person earning
`50,000 a month, would be eli-
gible, on an average, for a home
loan of upto `20 lakh to be
repaid over a period of 180
months. Since most homes here
come with a price tag of `1 crore
and above, we are talking about
a monthly income of `2 lakh to
be eligible for that kind of loan
hardly within the realm of the
white-collar worker. Ramakant
Trivedi, manager of a bakery,
says, Buying a home in
Mumbai is not an option at all,
which is why people like me look
for a home in places like
Nalasopara where we can buy a
2BHKfor about `20 - `25 lakh.
Best for investment
Prices over the last decade have
almost quadrupled in the
Mumbai real estate market.
There are several factors at play
here, besides the most obvious
demand and supply equation.
According to Samantak Das,
national head, research, Knight
Frank Services, Mumbai pres-
ents an investment opportunity
not only for those from within
the city but also across the
world. Due this status, there is a
push price fromthe investor fra-
ternity as well. Also, property in
Mumbai is being purchased not
just owing to the high income
groups here, but also the accu-
mulated wealth with people.
Also, there are many communi-
ties who are earning and
pumping funds into Mumbais
property. Its the best invest-
ment avenue as being the
financial capital, Mumbais
growth potential and economic
drivers are immense.
The flourishing city
The MMR is really flourishing.
Das explains, For instance,
today if I buy a flat at `1.5 crore,
I can also consider, investing
another `20 lakh in property in
Dombivili or Kalyan, where I
can be assured of returns in the
next 3-4 years. Economists
speak of price corrections in
minimal terms and while there
are micro markets where prices
have been stagnant for the past
six months, the real estate is
only going up. There are highest
returns on investment in
Mumbai property.
Thus, Mumbai realty prices
will never remain stagnant or
may be correct, primarily as
Mumbai is the best city in India
to invest in.
RATES ON THE RISE: Property in Mumbai is being purchased not just by the high income group, but also by people who have generations of accumulated wealth