How about a Rs.6-crore apartment in Thane?
Big builders up the ante at the ongoing MCHI exhibition
Would you pay Rs6 crore for 5,000sqft of super built-up space — Rs12,000/ sqft — in Thane? Chances are you would not. But then, neither does the developer have you in mind as the target buyer for these "villas in the sky".
The one-villa-per-floor homes at Lodha Aristo, with all the trappings of luxury to match, have not only been launched at an unprecedented rate, but the developer is also finding enough takers for these super premium, "by invitation only" homes.
Regardless of the elusiveness of homebuyers and the sharp drop in volume over the last year, developers are not only adopting an aggressive stance over pricing, but are also going ahead and raising the stakes.
The rates being quoted across the board at the ongoing Maharashtra Chamber of Housing Industry (MCHI) exhibition in Bandra are at least 10-25% more than those cited just two months ago.
"Ready-to-move-in projects command a higher premium and have witnessed sharp appreciation. Either the developers have not read the market correctly or they see continued potential for profit in the long-term," says Sanjay Dutt, CEO-Business, Jones Lang La Salle India, adding that going by the trends in the suburbs, it is the dawn of transition from a buyer's to a seller's market.
No surprises in the official line for the rate hike: increasing price of labour and raw materials. "The cost of cement and steel has gone up substantially in the last few months and we continue to face a huge shortage of sand due to the fresh ban on dredging," says Dilawar Nensey, joint managing director, Royal Palms.
There has been a slowdown even in the creation of new stock due to the new development control rules, which has led to a spike in the price of existing realty stocks in the city, he adds.
However, statistics from the registration office — which show a drastic drop in volume — may be telling just half the story.
"Most top builders continue to enjoy the patronage — and funds — of big ticket investors, who are parking their funds to block under-construction property without formally registering them," says an industry source.
Big builders up the ante at the ongoing MCHI exhibition
Would you pay Rs6 crore for 5,000sqft of super built-up space — Rs12,000/ sqft — in Thane? Chances are you would not. But then, neither does the developer have you in mind as the target buyer for these "villas in the sky".
The one-villa-per-floor homes at Lodha Aristo, with all the trappings of luxury to match, have not only been launched at an unprecedented rate, but the developer is also finding enough takers for these super premium, "by invitation only" homes.
Regardless of the elusiveness of homebuyers and the sharp drop in volume over the last year, developers are not only adopting an aggressive stance over pricing, but are also going ahead and raising the stakes.
The rates being quoted across the board at the ongoing Maharashtra Chamber of Housing Industry (MCHI) exhibition in Bandra are at least 10-25% more than those cited just two months ago.
"Ready-to-move-in projects command a higher premium and have witnessed sharp appreciation. Either the developers have not read the market correctly or they see continued potential for profit in the long-term," says Sanjay Dutt, CEO-Business, Jones Lang La Salle India, adding that going by the trends in the suburbs, it is the dawn of transition from a buyer's to a seller's market.
No surprises in the official line for the rate hike: increasing price of labour and raw materials. "The cost of cement and steel has gone up substantially in the last few months and we continue to face a huge shortage of sand due to the fresh ban on dredging," says Dilawar Nensey, joint managing director, Royal Palms.
There has been a slowdown even in the creation of new stock due to the new development control rules, which has led to a spike in the price of existing realty stocks in the city, he adds.
However, statistics from the registration office — which show a drastic drop in volume — may be telling just half the story.
"Most top builders continue to enjoy the patronage — and funds — of big ticket investors, who are parking their funds to block under-construction property without formally registering them," says an industry source.
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