And for a Friday in Mumbai….. some thoughts……
In more than 5 decades of staying in Mumbai, I had never noticed a super luxury Hotel coming up in the midst of multiple grave yards, but now one of the most strategic locations. First time stayed at the Four Seasons, Worli, the view from my 24 th floor Suite says it all. On one side the Ultra modern new huge 40, 50 and some 60 plus floors offices and plush residences for the super super rich – from Bollywood, Business, Cricket, Stock-Market winners – and cheek-to-jowl, the Shanties – locally called as “Jhopadpatties”. The sss..ssswanky apartments sell between Rs. 300 to 450 million but the Shanty does not come cheaper either. One of the contract staff of hotel stays in a 60 sq feet room. Rent of Rs. 8000 and 50,000 advance or equal security. Ooof… for a poor employee its a lot. That’s Mumbai, the world beaters, the climbers and strugglers. Room for all and all compete in their own leagues.
Post demonetisation and RERA ( Real Estate Regulatory Authority ), Residential housing market dynamics have changed across the country. Add the ILFS fiasco, all up and about sundry Cash based and Havala builders are in deep trouble. Projects will not be delivered. The builders may not survive. But the good news for genuine Builders and buyers is that things are improving. Property prices are down 20-30% in oversupplied Bangalore, 10-15% in Mumbai and almost stable in Trivandrum. But one pointer for sure is that apartments are no longer an investment venue. The days of making huge profits by investing in new apartments are over. Buy an apartment only for own stay, not as investment for future and in South Mumbai, only rent….. don’t buy….. not yet.
With international crude prices dropping and the Indian rupee stabilising, our Consumption based Economy supported by the Indian Entrepreneurial spirit will carve our own unique growth path irrespective of the Politics and Politicians. Let’s support each other to build a sustainable future, the legal way, the Ethical way, the SEEGOS way.