Mumbai residential prices registered CAGR of 14.6% over the last 8 years. Anecdotal analysis shows CAGR growth of 9-10% over the last 2-3 decades. We believe the unprecedented growth in Mumbai prices is not sustainable and will undergo mean revision over the next 1-2 years.
Ears on the Ground and site-visits verified availability of discounts up to 5-7% depending on the project. Developers have launched promotions such as absorption of pre-EMI interest till delivery, floor rise waivers, partly furnished apartments to attract customers. Significant discounts are only available to those who are ready to make advance payments. We continue to believe developers will oblige with further discounts (15-25%) as volumes continue to dip in 1HCY12.
The new FSI rules have increased the developable area by 35%. For example – If the permissible FSI on a land parcel was 1.33 earlier, it will now be 1.8. Similarly FSI for Mumbai suburbs capped at 2.0 will now translate to developable area using FSI of 2.0 X 1.35 = 2.7. This is good news for developers and buyers as well.
Monday, January 23, 2012
Sunday, January 15, 2012
Historical Housing Loan Accounts Data
The following Chart Shows the Historical Housing Loan Accounts Data in India. By this we can estimate the top 5 Real Estate Markets in India - Mumbai, Delhi NCR, Bangalore, Chennai and Pune.
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