Keep an eye on that dream home

More FSI, dipping realty prices may make 2011 the year to seal the deal

Keep an eye on that dream home

More FSI, dipping realty prices may make 2011 the year to seal the deal

The end of every year generally gives rise to speculations regarding stability of costs and availability of real estate and housing options in the New Year.

Several factors playing on the minds of investors as well as builders, lend an air of uncertainty to the overall real estate scenario in the city.

Builders have launched affordable housing in areas like Kalyan, Dombivali, and Virar

MiD DAY gives you a probable scenario of what to expect from an industry perpetually seen through the eyes of the common man as a dream barely within reach, due to unbelievable price tags.

Market correction

Much speculation arises when it comes to the prices of real estate.

When reports that prices are expected to drop do the rounds, most builders will switch to denial mode and swear blindly that it is a preposterous rumour.
That scenario however, has changed.

Anand Gupta, honorary secretary of the Builders Association of India, says, "The last quarter has shown that prices of real estate have been stagnant and there has been no price increase since the last few months.

Going by this trend, in the next three to four months real estate prices are expected to drop."

Affordable housing

Maharashtra Housing and Area Development Authority (MHADA) will now offer affordable housing to the common man in Bandra at the rate of Rs 6,000 per sq. ft and above all, and will conduct draws for houses in the next two months.

While MHADA is promising affordable housing in the city, builders still believe that housing at this rate would only be available in extended suburbs and the periphery of the city.

However, many builders and big corporates have launched affordable housing in areas like Kalyan, Dombivali, Virar, Vasind, Boisar and Palghar to name a few.

Expensive land

Builders claim that they will not be able to offer affordable houses to the common man within city limits because of the high land prices.
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Mihir Dhruva, CMD, Habitat group a real estate firm said, "Land prices are still high, people who sell us land quote higher prices, and hence we are forced to keep the prices high. The government should come up with more FSI."

More FSI needed

Builders also think that the government should give more FSI, especially in the periphery and the other extended suburbs.
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"The moment we get more FSI, the supply will increase and ensure that the demand will be met. The moment supply meets demand, prices are bound to fall," said Dhruva.

He also claims that the government's decision to allow use of the .33 FSI in suburbs has helped in increasing the supply.

More options

Sunil Mantri, President, Maharashtra Chamber of Housing and Industry, the apex body of real estate, said, "The supply has increased, hence the buyer will have options to choose from.

A buyer will have the option to afford an apartment of his choice, because in the last few months the supply has gone up."

New airport

The Navi Mumbai airport is still a project yet to be realised; however, it has still affected land prices. "In the coming year, the prices would be high and this is all due to the proposed airport.
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The airport has helped builders jack up prices.

However, if they do not tread cautiously and keep hiking prices, then even Navi Mumbai might see a correction as high prices would affect the sales adversely," said Manohar Shroff, Secretary, Navi Mumbai Chamber of Housing.