The Changing Market - March 4, 2006. Times Property (Times of India)

"Rental values have been steady across the city, with properties from Juhu to Bandra being an exception" - Chetan Narain

As prices change rapidly, here's an update on Mumbai's property markets

Given the changes we have seen in the last year, especially in the last four months, here is a complete update on property rates in various locations of Mumbai. We have classified them into A / B / C type categories, to justify the price bandwidth and difference.

The rates of South Mumbai properties may seem higher, but if you observe the ratio of carpet to built-up in these locations, the difference is only eight to 10 per cent and at times, their saleable areas are on the usable/carpet space/area only, as compared to properties in the eastern/central and western suburbs with difference of 35 to 45 per cent.

 For example, an apartment in Maker Tower A / B at Cuffe Parade of 3,000 sq.ft. would be approximately seven to eight per cent less in terms of usable space due to thickness of internal walls etc.. You still get usable/carpet space of approximately 2760-2800 sq.ft.

 If you compare this to a new development where the difference is higher - as high as 40 per cent - all you get in hand is approximately 2,200 sq.ft., although you are charged for 3000 sq.ft..

 The property prices from Bandra right upto Borivali have appreciated and scaled new highs in the recent months. Here again like I have said once before, just like the 30 scrip BSE index leads the stock market to a new high every day, the exclusive premium projects in each location lead the rest of the market to follow suit.

  On the rental market front: The rental values have been steady across the city - one exception being properties from Juhu to Bandra, which have seen a reasonable appreciation. Expatriate families have chosen Bandra-Juhu as more central location to live in. The reason for this is proximity to the workplace, which has mainly consolidated between Lower Parel and Malad, except for the FIIs at Nariman Point. Also, the American school at BKC is a major consideration in decision-making. South Mumbai has been flat, with very little change to scream home about.

•        Property prices from Bandra right upto Borivali have appreciated and scaled new highs in the recent months