And even if they do return with options, chances are that you will be thoroughly disappointed with the sorry offerings.
If you are lucky enough to pick one for you, you will definitely be paying much more than what you did last year. Do not bother going by the published prices. And do not bother bargaining either - there are buyers in the queue who would not.
According to Cushman & Wakefield, a buoyant economy and higher disposable incomes in the hands of the end users have contributed towards a positive impact on the property market.
It has resulted in a rise in residential property prices across the city, and heightened activity in the central and the northern suburbs.
However, the stock of quality apartments in south Mumbai has remained constrained since early 2005, putting upward pressure on already appreciated values.
Anjeli Hazare, a south Mumbai broker, agrees, "I have prospective buyers lined up, but no apartments to show them. Especially, in the segment below Rs 2.5 crore (Rs 25 million)."
The stock situation in the prime segment in excess of Rs 3 crore (Rs 30 million) is more favourable, but the sheer demand for quality apartments is encouraging sellers to quote prices that often breach the Rs 20,000 per sq ft mark.
A 1,400 sq ft, 3-BHK costs anywhere between Rs 2.5-3 crore, and for 4 and 5-BHK in a grade A building, the sky is the limit. It is a seller's market right through.
According to Sunil Bajaj, another city broker, "The property market is much like the share market. When it is up, you don't want to sell because you expect even more. So, you continue to hold on."
In fact, Hazare has stopped entertaining requests for the below Rs 2 crore (Rs 20 million) segment, because, she says, "the stockpile is of such poor quality that our efforts in that direction are wasted."
The bulk of Hazare's clients are high-net-worth individuals, who are willing to pay the price for a grade A apartment. "When a great apartment comes by, it is sometimes just days before it is snapped up, but otherwise we have demand far exceeding supply," she said.
The situation for rentals is similar. Although supply is high, achievable lease rents are high. According to Cushman & Wakefield, a 1,800 sq ft apartment can fetch as much as Rs 1,80,000 a month, which includes the notional cost of interest on security deposit.
And the prices could go up further. Cushman & Wakefield also predicts that the trend will continue for at least the next 12 months before prices stabilise.
Concrete Reality
- Bouyant economy has fuelled a seemingly insatiable demand for real estate, leading to a construction boom in central and northern suburbs.
- Rentals in the city too have risen sharply with a 1,800 sq ft apartment fetching as much as Rs 1,80,000 a month.
