Monday, July 09, 2012

Mumbai - Upward Pricing for Premium Properties

Recent new launches in Mumbai MRDA include – Godrej Chembur (BSP - Rs16k psf), Wadhwa Dadar (Rs25.5k psf), Bombay Dyeing Dadar ICC1/2 (roughly Rs28k psf), Lodha Dioro Wadala (Rs15k psf), Godrej Platinum Vikhroli (Rs12k psf) and IBREL Worli Blu
(Rs50k psf).

To us, most of these projects appear to be priced at a meaningful premium (15-40%) to the neighborhood and are, therefore, losing investor demand. Project specifications (large/mixed format, fit outs, common area, amenities) are improving sharply to compare with those in the more advanced cities in the world. These Developers continue to prefer margins (pricing) at the cost of asset turnover (volumes).

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