By Dr. Sanjay Chaturvedi
Buyers are now waiting for real estate prices to come down, at least in Mumbai. They do not have any other option but to wait. Registrar’s data is indicating the trend in six zones of Mumbai. The rates which have crossed one crore mark in any locality for two bedroom hall kitchen is most likely to go further up by October because it payout time for builders. Lodha Group will have to exist Dutch Bank by December and likewise many whoopingly high FSI purchasers will now manipulate the market by selling from one arm to other. Just like what happens in stock markets for enhancing price of a stock, brokers keep on playing on a script till its reach a point where they control investors fully and absolutely.
Margin hunters in real estate are active and speculation is at its peak. In the name of Affordable Housing, builders are selling one bedroom kitchen at Virar for Rs.14 Lakh. The area being 361 sq.ft. carpet hence making rates to touch almost Rs.4000/- per sq.ft. This is historically high and never seen, not even in 2007. Every tom Dick and Herry is a builder and God alone knows what is their credentials. We are heading for disaster like we had in 1995-96. Many developers and builders had runaway with hard earned money in the name of homes. Buyers are not looking at the credentials of builders. Fly by Night Operators will certainly give shock of lifetime to many who do not understand the real estate transaction process or blind folded believing what the sellers is saying.
The rates are gone unimaginative and are likely to go further up in the festive season but a major correction is most likely in near future. Market forces will take its own course for such correction. Margin hunters do not want price to fall hence whenever there are talks on fall in price, these people fake their talk and offer to buy it at whatever fallen price. In fact they do not intend to buy a single sq.ft. not do they have capacity to sustain such price fall.
Bull is active but a fall is most eminent in the areas like Navi Mumbai, Thane, Kalyan, and Panvel.