Mumbai: 
In the last one month, three properties at Bandra (W), were sold between Rs 13,000 and Rs 16,000 per sq ft. The three apartments are in three different high-rises in relatively new buildings. In fact, the apartment at Satra Residency on 14th A road (pictured), is in the final stages of completion with the paint yet to dry and went at Rs 16,000/sq ft for a 3,500 sq ft flat.
Normally, apartments in these areas, command anywhere between Rs 20,000 and Rs 25,000 per sq ft an approximate 25 per cent drop. As this reporter discovered, none were distress sales. So, why is the queen of suburbs suddenly becoming a little more affordable?
Explains Pankaj Renjhen, MD (Mumbai), Jones Lang LaSalle Meghraj, "The realty market is going through a correction, throughout Mumbai, but the correction will be more in certain areas. Frankly, it's a wait and watch situation. The number of buyers have dropped with the rise in interest on housing loans."
Bandra, Khar, 3 months ago (per sq ft rate)
Rs 25,000 to Rs 22,000
Now
Rs 13,000 to Rs 16,000
'Rates in Bandra will fall to Rs 12k/sq ft'
Vikas Bhatia, director of the real estate consultancy firm that brokered several deals in Bandra (W) in the range of Rs 13,000 and Rs 16,000 per sq ft said, "If a flat is being sold at a price of Rs 13,300 per sq ft, then it's obvious that the real estate market in these areas are heading for a correction."
Vibhoo Mehra from another real estate firm, recently mediated a deal on 12th road, Bandra for Rs 16,000.
"Earlier, the demand was more than supply, but that's reversed now so, obviously, rates are going down.
We expect rates to dip more," he said.
Experts also believe that the fall in the realty market did not affect these areas three months ago, when recession began in full earnest.
Prices across the city, expect for Bandra, Santacruz and Khar, fell by 20 per cent. This helped builders in maintaining inflated prices in these suburbs.
"It's becoming a buyers' market and moreover, buyers have understood that the rates are artificially hiked.
So buyers ensure that they get better deals by haggling. The rates in Bandra will very soon reach the Rs 12,000 mark," said Sanjay Chaturvedi from Accommodation Times. Prices in the rest of the city have now fallen by more than 30 per cent.
Banks claim that the fall in the market hasn't affected them. A spokesperson from HDFC Bank Ltd said, "We have been getting regular applications for loans. This quarter we haven't seen any dip in the housing loan applications."
