MIXED SIGNALS - October 7, 2006. Times Property (Times of India)

An ever growing demand and quantity and quality of supply will keep redefining price trends in every location

The property market has been experiencing mixed reactions from the two factions, the 'Bulls and Bears' of Real Estate. While a whole bunch of folks are all set to drag the market down by their own versions of market analysis' the market and trends don't seem to agree.

Let's dissect the city and analyse the current scene.

Colaba/ Cuffe Parade/ Nariman Point: With almost no new development or supply of any kind of property, commercial or residential, the prices seem to hold on. While many sellers are living in hope to achieve new highs in their sale price, it is unlikely to happen. In the South Mumbai region the new/first home buyer's focus is shifting more to mid-town and the prices are expected to remain flat and a correction is overdue.

Marine Drive/ Chowpatty/ Marine Lines/ Kalbadevi: This region covers most of old Bombay. Most of the construction was done in the early 1900's. Nearly 90 per cent of the properties in this region are State Government leased land or Bombay port trust leased land. Nearly 70 per cent of the properties here are on Pagdi (Old rent basis). Prices here also enjoyed the ride along with the market upswing and have remained stable again due to lack of new supply. The demand comes from growing family needs, new entrants with new money (mostly from the stock and diamond markets).

The Golden Triangle: (Malabar/Cumballa Hill/Nepean sea / Warden Road: It is called the golden triangle because this location is always in demand. It has 15 odd per cent of rented properties to expats and companies and 85per cent of ownership or pagdi properties. The location offers panoramic views from most properties and prices have only being going up due to a never-ending demand in this region. The prices are expected to remain stable with NO major correction expected

Worli/ Mahalakshmi/ Parel:
One of the fastest growing locations, which has provided a midtown office address to the best of the corporate world. With most mills and industries being converted into commercial, retail and residential hubs, this is a location to watch out for. Two super luxury towers offering better than the best amenities are about to change the face of this location. Also, with Hard Rock Café and `Shiros' (a high end lounge bar) having opened doors a few weeks ago in the Bombay Dyeing mills compound, it is all set to change the way Mumbai parties. The rates here for both residential and commercial properties offer scope for further appreciation and I highly recommend buying after thorough market survey, in the property type of your desire.

Prabhadevi/ Dadar/ Shivaji Park/ Mahim: Somehow, Worli has managed to stretch itself into Prabhadevi. With premium residential properties being developed here by `Sumer group' and `Sheth Builders' respectively, the void for residential place in the region has been filled in gracefully. Once again this is another location to look out for, where the prices can only look up in the long run.

Bandra/ Khar/ Santacruz: On the residential side Bandra has always been a very upmarket location. With two long stretches of Bandstand and Carter offering complete sea views, it has Pali Hill offering the same from higher level apartments. The prices here have only been rising and well deserved too. In the east, is the city's bestplanned commercial hub `Bandra Kurla Complex' (BKC). Home to nearly all bank headquarters and to the new Diamond bourse, the location is all set to create new highs. Khar and Santacruz (east and west) seem to enjoy the heat of the appreciation of Bandra price points. These locations are less congested and offer a peaceful environment to come back home to. The prices here have stabilised and
will continue to remain flat for about six odd months.

Juhu/ Juhu Scheme/ Vile Parle (East and West): Supply versus demand has been the major factor for price rise in this region. The sea front stretch has always been in demand and prices just kept increasing for land and ready apartments. The Juhu scheme and other areas of Parle have been dominated by the Gujarati/Jain and Marwari communities and growing nuclear family needs and return of NRIs or investments by them has added fuel to the demand. The prices here have gone up too soon and we might see a correction in over-priced properties.

Lokhandwala/ Versova: This location has enjoyed a slow but sure price rise. It has been a more realistic ride, just like the rest of north Mumbai because most buyers are first home buyers. A one-bedroom apartment, which was at Rs 23 lakh around the same time last year, is demanding Rs 40 lakh today. Here the demand is real and so are the prices. In the long run the prices will only move up further.

Jogeshwari to Borivali:
This is perhaps the largest residential zone housing millions of people and has seen a steady price rise over the years. Road connectivity wise, it lacks on the infrastructure front. Town planning for open spaces and gardens has been ignored just like the rest of the city but it still remains a potentially good place to invest or live in. I feel addition of quality hospitals and schools is the need in this location. In the recent past I have proposed a `Health City' to be built in this region. The closest hospital for someone living at Borivali is Nanavati' at Parle. It offers a great opportunity to private hospitals with a critical mass presence. We have inquiries from three of the largest hospitals to open shop here but the developers fail to see the vision. To conclude, an ever growing demand and quantity / quality of supply will keep redefining the price trends in every location.