Residential land prices shot up by over 35% in 2 years: Survey
Mumbai: Prices of land, which are used for development of residential properties in Mumbai, have appreciated by almost 35.2 percent over the
last two years mainly due to change in norms and increase in property
prices, a recent survey said.
A survey conducted by Knight Frank
of 13 top Asian cities on the parameters of prices of land used for
residential and commercial projects, pointed out that Mumbai is an
expensive market compared to Delhi NCR and Bangalore,Pune and Nagpur which have been
studied in the report.
According to the report, Mumbai's
residential development land prices appreciated by 35.2 percent in the
last two years, while those of Bangalore grew by 26.1 percent and Delhi
NCR by 24.9 percent.
However, in terms of office space
development, land prices fell by 13.1 percent, even as Delhi NCR and
Bangalore registered a growth of 16.3 percent and 12.9 percent,
respectively.
"Change in development norms coupled with increase
in residential prices resulted in an increase in prices for land used
for residential development in Mumbai. However, a fall in office space
absorption combined with large quantum of supply led to a decline in the
office development land index," the report said.
The report
noted that prime residential development land index for NCR witnessed an
appreciation of 24.9 percent owing to the increase in prime property
prices and steady demand.
Emerging markets of Gurgaon illustrate
a much higher rise in prime office land values compared to the
established markets of Connaught Place and Saket, it said.
In
case of Bangalore, increase in property prices and demand for housing
due to steady job growth enabled residential land prices to grow 26.1
percent. Similarly, increase in demand from the IT/ITeS sectors pushed
office development land prices.
"While Mumbai witnessed maximum
appreciation compared to National Capital Region and Bangalore in
residential land prices, it emerged as the worst performer in the office
space front," Knight Frank Chief Economist and Director ? Research
Samantak Das said.
Land prices in Mumbai are likely to continue
to grow in the coming future mainly because of its limited availability,
poor quality infrastructure and regulatory constraints, that have
severely restricted creation of new housing stock, resulting in an ever
widening demand supply gap and consequent increase in-built property
prices.
Source : WEB
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