Homes in Metros Witness Price Rise of Over 50 Percent

Also during the economic depression in late 2008-09, the real estate market had declined but picked up by 2010, making a huge mismatch between demand and supply. This is because during the market slowdown many real estate projects got held up which in turn pushed the property prices go upward in the ensuing period, stated says Ajay Chandra, managing director of Unitech.

 “In this period, price of commercial space has hardly kept pace with inflation while residential property values have gone up significantly, but in select pockets of larger cities. This is a forward indicator of a positive upward trend for residential property values in the future across the other larger Indian cities,” Anckur Srivasttava, chairman of GenReal Property Advisers — a real estate consulting firm.

Taking into account, in Mumbai obtaining approvals take lots of time and due to which projects get delayed most of the time. “Now it takes more than two years for an approval that used to take six months earlier,” said Hiranandani.

Other factors like ready reckoner rates, value added tax and development charges together push up property prices high. “You name any tax or charges, and that has gone through the roof during these years,” added Hiranandani.

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