Post by johnirain on Mar 26, 2009 5:44:29 GMT -5
Flats in Tripunithura often denotes a housing block of lesser quality meant for lower-income groups, while apartment is more generic and may also include luxury condominiums. Genuine end-users have taken over from investors and account for 80 to 90 per cent of sales in their current projects of building flats. The respondents expressed mixed reaction with regard to land valuation and construction of building. Most of them seem to be reaching the consensus that land values are likely to see stability over the short to mid-term period and may not witness any appreciation over the next 12 months. In the April-June quarter, capital value of residential properties has stagnated. The global consultancy firm feels that the present condition will continue for some more time. The equated monthly installment (EMI) of Rs 30 lakh loan for 20 years is over Rs 33,000, which a middle class person finds difficult to afford. During the boom time, the interest rate on home loan was around 7.5% and the EMI on Rs 30 lakh loan was about Rs 24,000.
The builders argue that cost of construction of an average apartment has gone up to around Rs 1,200-1,800 per sq feet from Rs 600-900 per sq feet a couple of years back. At the same time, the land cost also comes out to be in the range of Rs 1,500 per sq. ft. Therefore, builders said developers can’t sell a residential apartment at less than Rs 3,200 per sq. ft. If the land is acquired around 2004, he can sell at around Rs 2,800 per sq. ft as the land cost for him would be in the range of Rs 1,000 per sq ft. Depending on the sensibilities of the landlords and the quality of the properties, SROs can range. Some have been run in dormitory fashion. Others have been cage hotels, in which a large room is split into many smaller ones with corrugated steel or sheetrock dividers, which do not reach the height of the original ceiling. To prevent tenants from climbing over the walls into each others' spaces, the tops of the rooms are covered in chicken wire, making the rooms look something like cages.
The builders argue that cost of construction of an average apartment has gone up to around Rs 1,200-1,800 per sq feet from Rs 600-900 per sq feet a couple of years back. At the same time, the land cost also comes out to be in the range of Rs 1,500 per sq. ft. Therefore, builders said developers can’t sell a residential apartment at less than Rs 3,200 per sq. ft. If the land is acquired around 2004, he can sell at around Rs 2,800 per sq. ft as the land cost for him would be in the range of Rs 1,000 per sq ft. Depending on the sensibilities of the landlords and the quality of the properties, SROs can range. Some have been run in dormitory fashion. Others have been cage hotels, in which a large room is split into many smaller ones with corrugated steel or sheetrock dividers, which do not reach the height of the original ceiling. To prevent tenants from climbing over the walls into each others' spaces, the tops of the rooms are covered in chicken wire, making the rooms look something like cages.