Land prices in Mumbai may go up by 5-10%

Office space prices may remain static in Colaba, Nariman Pt

The state government expects land prices in Mumbai to go up by 5-10 per cent this year.

According to the annual ready reckoner put out by the inspector general for stamp duty and registration, land prices in south and central Mumbai are expected to go up while prices for office space will retain its current level.

While property prices have remained more or less the same in the central business district (CBD) of Colaba and Nariman Point, it may go up in the secondary business districts of Worli and Lower Parel.

The state government publishes a stamp duty ready reckoner every year, which is considered by market watchers as an indicator of price trend in a particular area. Of late, the government has been accused of valuing properties on the higher side.

Explaining how the government arrives at the prices, a senior official of the stamp duty department said, "We send a list of transactions which took place at higher than and substantially lower rates compared with the ready reckoner rates of the town planning department. The department takes into consideration other factors too for arriving at its outlook for the next calendar year."

According to this year's ready reckoner, prices will remain stagnant in the traditional central business district of south Mumbai or in some cases may even take a dip. But in the secondary business districts of Worli, Lower Parel, Marol and Chakala, the rates may move up by 5-10 per cent.

In Colaba, land prices have shown a rise due to land scarcity. These have jumped from Rs 56,850 per sq mt in 2005 to Rs 62,500 per sq mt in 2006. However, prices of office space have remained unchanged at Rs 1,26,000 per sq mt.

Land prices at Cuffe Parade and Madam Cama Road (Nariman Point) have gone up from Rs 72,000 per sq mt to Rs 75,600. But again office space prices have remained steady at Rs 1,41,000 per sq mt.

But in the peripheral business district of Worli and Lower Parel, specifically at Dr Annie Besant Road, land and commercial property prices have gone up by 10 per cent and 5 per cent, respectively, over last year's figures of Rs 43,850 and Rs 1,00,000.

The charges for Jupiter Mills land which became available this year are seen at Rs 29,200 in the case of land and Rs 70,800 for commercial space.

Besides, the suburban business district of Marol would attract a stamp duty of Rs 13,900 per sq mt for land and Rs 44,000 for office space. The charges here last year were Rs 12,650 and Rs 40,000, respectively.

In another suburban business district of Chakala, prices have gone up by 5 per cent from previous year's Rs 16,500 and Rs 47,500 for land and office space.