Maximum city, minimum value

July 28th, 2011

I am always told that Mumbai’s real estate market behaves differently than other real estate markets in the country. But despite several explanations, I fail to understand why.

And the difference is so great that even if you have a budget of Rs 50 lakh, you will not be able to buy a decent house. That kind of money will fetch you a bungalow in some northern states.

And it isnt just the asking price of the flat that you have to deal with. Add to that registration and other charges, and you will most likely end up in debt for theĀ  better part of your productive years in order to garner finance for your ‘dream’ house.

What hurts is that even a distant suburb like Kharghar, in Navi Mumbai, commands a per-square-foot rate of over Rs 5,500-6,000! This, when there is no decent hospital in the vicinity, no decent public transport, no recreation centre, nothing. And the roads there are as bad as you would get anywhere else in Mumbai with over flowing dustbins.

In the past four years, the per-square-foot rate in Kharghar has jumped over 83 per cent while the infrastructure has not improved one bit.

The officials of City Industrial Development Corporation (CIDCO), the nodal agency responsible for Navi Mumbai’s development, do not even bother tending to daily municipal jobs.

Flats in a locality where even a drizzle turns the road into a muddy track are going for as much as Rs 60 lakh. And if you don’t have your own vehicle, you could end up spending a good 30-45 minutes just commuting from the station to your house instead of the 10 minutes it should actually take.

In fact, infrastructure in Mumbai is always in an (never) improving mode. Wherever you go, Bandra or Andheri or Vashi, some nook and corner is always under construction.

Infrastructure and public transport is so pathetic that you can go to Igatpuri and come back, but you still cannot get your way through Andheri!

Added to this, the monsoon season. A thick sheet of rain and the city becomes the most difficult to live in. The trains will be late forever. Cabbies will abandon their vehicles. And you are stranded!

Flyovers and skywalks are always under construction. Roads are always dug up. staircases that were repaired six months ago will be again under repair. (I had once heard a contractor, on the radio, saying if they don’t re-repair the staircases and roads, how will they earn?)

And then, the train compartments never expand despite the burgeoning passenger capacity— the system carries more than 6.9 million commuters on a daily basis and constitutes more than half the total daily passenger capacity of the Indian Railways itself, says Wikipedia. Many people I know stay back late in office to avoid rush hour…and despite all this, Mumbai’s real estate market is always northbound. city, minimum value digg:Maximum city, minimum value newsvine:Maximum city, minimum value reddit:Maximum city, minimum value Y!:Maximum city, minimum value