12000 Per Sq Ft: New Normal Rate in Mumbai Realty

"Today, construction costs have shot up to 3,000 a square foot and FSI costs have reached 3,500 a square foot and interest costs and approval costs add 1,000 more. So costs constitute most of the price," said Om Ahuja, CEO (residential services), Jones Lang LaSalle.

Moreover, 30 percent of ready reckoner rate has been increased by the government from 1 January 2013, which has fueled up the property prices. Besides, ready reckoner rates are used to calculate property registration charges and stamp duty.

"Whatever (be the) increase in costs, (it) will be on buyers. The government has increased ready reckoner rates, which will increase the prices again," according to Paras Gundecha, President of Maharashtra Chamber of Housing Industry.

"In 2013, people will go out and start buying as stock markets pick up and global liquidity situation improves. Improvements in markets will have a spillover effect in real estate," added Kumar.

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