• Introduction• Ready Reckoner• Ready Reckoner Rates• Mumbai Suburbs• Mumbai Suburbs Rates• Residential Price Growth• Pros of Real Estate Regulatory Bill• Cons of Real Estate Regulatory Bill• ILLUSTRATION• CLOSURE

Residential property prices across Mumbai city and its suburbs increased only by 7% in 2014 and a negligible 0.3% in 2013.

In fact, the meagre increase in average property prices in the city stands in stark contrast to the general inflation rate of 6% in 2014 and 9% in 2013 (as per the CPI data).

According to reports, the average hike of 7% was primarily due to the new development control (DC) rules that came into effect from 2013.

Ready Reckoner is used to calculate the market value ofproperties for paying stamp duty and registration charges, butthe rates are different from market rates.

Taxes such as stamp duty, value added tax, sales tax andregistration charges are based on such government providedready reckoner rates.

Government of Maharashtra has announced revised circle rates effective from1st January 2015.

Ready reckoner rates, have been increased by 30-40% in case of some fastest-growing, popular suburbs in the city.

The average hike in the past two years has been 13%.

The eastern suburbs from Kurla to Mulund saw an increase of 6% in 2014 over 2013 and 5% in 2013 over 2012 prices.

South Mumbai and western suburbs between Malad and Borivali recorded a similar price increase as their eastern neighbours.

Bandra, Khar, Santacruz and Juhu also saw average growth in prices, as these areas lack a good supply of high-rises.

Rates in popular suburbs such as Goregaon, Borivali, Malad, Chembur, Ghatkopar and Vikhroli have also been increased.

While the average hike across the city is between 15% and 20% for 2015, the highest increase is about 40%.

Chembur and Wadala stood apart from this lacklustre trend in residential price growth.

The two suburbs saw a tremendous price increase of 58% and 50% respectively in 2014 over 2013.

Thanks to completion of infrastructure projects like Eastern Freeway, which connects Chembur to South Mumbai and the Monorail.

Areas 2013 2014

Chembur 37% 58%

Goregaon 50% 48%

Wadala 1% 50%

Andheri 60% 18%

Ghatkopar 8% 21%

Borivali 15% 8%

Well-timed delivery of flats to buyers.

Giving accurate project details in disclosure.

Specifying actual carpet area becomes mandatory.

All clearances are compulsory before launching a project.

Maintain separate bank accounts for each project.

After sales service due to structural defects.

Past real estate projects excluded from the bill.

Delay due to approval from government agencies.

No mandatory regulation for projects less than 4000 square meter.

New project launches expected to be delayed.

For instance, if one wants to buy property in E Moses Road in Worli, the taxes will be based on the new rate of Rs 23,959 per square feet, which is a 40% increase from the 2014 figure.

In Napean Sea Road, the taxes will be based on Rs 79,005 per sq ft, a 15% increase.

Cuffe Parade has seen a 15% rise in rates at Rs 57,713 a sq ft, while rates in Cumbala Hill have been hiked to Rs 39,117 per sq ft, up 15%.

It is an optimal time to buy residential property and negotiate a favourable deal.

In 2015, prices in Mumbai are expected to grow by 6%.

Residential sales in Mumbai during the year 2014 stood at to 26,407 units, a drop of 4.6% from levels seen in 2013. Areas like Panvel, Mulund, Ulwe and Andheri saw the highest demand for housing units in 2014.

As against the sales, new launches increased by 8% in 2014 over 2013. Areas such as Panvel, Kharghar, Thane and Mulundsaw the highest supply of housing units in 2014.

Source: Media Reports &

Images for representation purpose only

Source: Money Control & TOI