12000 Per Sq Ft: New Normal Rate in Mumbai Realty

"Today, even the smallest unit costs between 70 lakh (7 million) and 1 crore (10 million) in the main suburbs," said Amit Goenka, Managing Director and CEO of Essel Group-backed financial services firm Essel Capital Holdings, reports Business Standard.

The reason behind the sharp increase in property prices in the city is mainly because of late project approvals and increase in input costs, according to property consultants and developers.

Also Read: Nearly 83,000 Inventories Are Still Unsold In Mumbai

"In the last two years, there were hardly any approvals which led to delay. Lesser inventory has resulted in increase in prices," added Kumar.

Last year, Maharashtra government has introduced some changes to the development control rules, resulting in less supply, according to Goenka.

Property prices in Mumbai are always high but it has become unaffordable due to hike in input costs over the last three years.

Also Read: Nearly 83,000 Inventories Are Still Unsold In Mumbai