Property prices set to rise with new development control rules
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The new Development Control Rules (DCR) has led to increase in property prices. And this is just a start; many large developers are set to increase prices by almost 10 -15%.
In order to comply with the new development control rules, developers have had to change plans and resubmit them to the BMC, often leading to a rise in costs for the end buyers.
Oberoi Realty has said that prices would rise between Rs 1,000-1500/ sq ft in their projects, while HDIL feels that because of the new DCR, a hike of Rs 750- 1000/sq ft is likely. Sunteck Realty and Lodha Developers have also come on record to say that prices would rise between 5-8% and Mantri Developers, Rs 500-1000/sq ft. Already many builders, including Oberoi Realty and HDIL have submitted revised plans; in Oberoi’s case, at a cost of Rs 150 crore!
Analysts agree that this price hike will be passed on to consumers, and so, prices in the city of Mumbai will only head north from here!
Pirojsha Godrej, MD, Godrej Properties said, “don’t think meaningful reduction in prices is possible unless govt greatly eases supply constraints. Ability to reduce prices will erode margins given current economic scenario.”
Oberoi Realty has said that prices would rise between Rs 1,000-1500/ sq ft in their projects, while HDIL feels that because of the new DCR, a hike of Rs 750- 1000/sq ft is likely. Sunteck Realty and Lodha Developers have also come on record to say that prices would rise between 5-8% and Mantri Developers, Rs 500-1000/sq ft. Already many builders, including Oberoi Realty and HDIL have submitted revised plans; in Oberoi’s case, at a cost of Rs 150 crore!
Analysts agree that this price hike will be passed on to consumers, and so, prices in the city of Mumbai will only head north from here!
Pirojsha Godrej, MD, Godrej Properties said, “don’t think meaningful reduction in prices is possible unless govt greatly eases supply constraints. Ability to reduce prices will erode margins given current economic scenario.”
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