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MumbaiGreater Mumbai may be the costliest real estate market in the country, but apartment prices have increased marginally or remained almost constant over the 10-year period between 2013 and 2023.
While the sale of some spacious apartments or large penthouses at record prices in Mumbai makes national headlines, data shows that those who bought flats in the last decade and sold the property a few years later made barely any profit.
According to real estate research and rating firm, Liases Force, Mumbai has not shown any increase in property prices in the last 10 years. Over the past decade, the average price in Greater Mumbai and larger Mumbai Metropolitan Region (MMR) declined by 1%. The average price in MMR was Rs 18,845 per sq ft in 2013, which is Rs 18,708 per sq ft after 10 years – a decline of 1%.
During the same period, prices in Hyderabad almost doubled with an appreciation of 98%, followed by the NCR, where the average price went up by 63%, Ahmedabad 58%, Bengaluru 38%, Chennai 35%, Kolkata 37% and Pune grew by 20%. ,
TOI independently conducted its assessment by perusing property registration documents of several luxury buildings in south, central and suburban Mumbai. The findings are revealing.
In Bandra (East), a leading Bollywood female actor bought a 5,534 sq ft apartment in 2015 for Rs 31.48 crore. In 2022, he sold the flat for Rs 32.5 crore.
Near Worli Naka, a private firm had bought a 4,919-sqft apartment in 2016 for Rs 33.25 crore. However, when the same flat was sold in 2021, he got Rs 35 crore.
‘FSI hike to ensure that flat prices in the city do not rise in the years to come’
Data shows that flats bought in the last decade in Greater Mumbai and sold after a few years have barely made any financial gains. TOI independently conducted its own assessment and here are some of the findings.
In Breach Candy, a 3,781 sq ft luxury apartment was bought in 2015 for Rs 52.75 crore and sold in 2019 for Rs 52.62 crore.
A person had bought a 2,029 sq ft apartment in Prabhadevi Towers in 2013 for Rs 12.75 crore. It was sold in 2022 for Rs 13.73 crore.
In a new high-end tower near Peddar Road, an apartment was sold in 2016 for Rs 29 crore. Four years later, a slightly bigger apartment in the same tower was sold for Rs 26 crore.
A well-known actor bought a large apartment (4,652 sq ft) in 2014 for around Rs 41 crore, in a luxury residential tower in Worli. Seven years later in 2021, the actor sold the flat for Rs 45.75 crore. However, the area of the flat was now shown as 7,530 sq ft in the registration document. Sources said that the builder later took advantage of the higher floor space index (FSI) to increase the size of the flat.
Even in the suburbs, the data for some of the luxury buildings shows that the prices have not increased significantly in the last decade.
In 2013, an apartment in a residential tower in Oshiwara was sold for Rs 4.62 crore. The same flat was sold in 2017 for Rs 4.98 crore.
In Andheri (New DN Nagar), an apartment was sold in 2015 for Rs 13 crore. Seven years later, the same unit was sold for Rs 15.5 crore.
In Bandra Reclamation, an apartment in a luxury tower was bought for Rs 15 crore in 2015 and sold five years later in 2020 for Rs 16.75 crore.
A developer told TOI, “The city’s new Development Control and Promotion Regulation (DCPR 2034) has further increased the floor space index (FSI) in all housing schemes. This will ensure that property prices do not increase in the coming years ” “While gold prices have doubled in the last decade, asset prices have increased by 10-12% overall,” he added.
Mumbai registered a phenomenal growth in property prices between 2004 and 2008. The rates of many projects across the city doubled and even tripled during this period.
But the last decade saw a virtual stagnation in prices.
The Liases Foras study shows that prices have actually dropped by 10% in the island city. In comparison, locations in the western and central suburbs appreciated by 23% and 17%, respectively, in the last 10 years.
The maximum increase in prices seen in peripheral locations like Navi Mumbai and the extended western suburbs (beyond Dahisar) have shown an increase of around 50%. In other words, prices have declined in premium locations while those in cheaper peripheral areas have risen.
Developer Niranjan Hiranandani, however, disagreed that Mumbai’s property market had witnessed marginal growth.
He told this newspaper, “On an average, there has been a 30-35% increase in prices in the city in the last decade. Yes, in some places it could be 15%. But overall, there has been a strong increase.”
Pankaj Kapur of Liaises Forums said, “Value correction over the years has bridged the gap in affordability and prices, resulting in Mumbai recording highest ever sales volume last year. Concession in premium given to developers led to record new launches Mumbai, which saw a 30% increase in inventory last year. Today, with 3,77,000 units, MMR accounts for the highest inventory across India and contributes 37% to the inventory of the top eight cities. Thus , prices in the MMR region will be under pressure.”
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