Realty takes stock

Property prices in suburban Mumbai may not rise due to the recent High Court order. Though some builders are trying to proffer a demand-and-supply logic, there are other factors.

8220;Builders who bought mill land at high prices are not going to build flats for the middle class,8221; argued L T. Maheshwari of Goldmine Property Consultants. 8220;The average proposed flat in the area will cost around Rs 3 crore for a three bedroom-hall-kitchen. Now, those buyers will not move to Kandivali or Borivali, so where is the extra demand?8221; 8220;The Supreme Court must find a way out as the stakes are very high in these deals,8221; said a dealer. 8220;This legal process may take some time. During this period prices may go up temporarily.8221;

The Maharashtra Housing and Area Development Authority MHADA will have more space to fulfil its mandate: to build low-cost housing.

The supply from MHADA could bring down prices. If the judgement holds and one-third of the mill land is commercially exploited by a private builder, it would lower the prices greatly.

Brokers said with re-development projects getting completed according to the directives of the HC on Monday, supply will further increase, thus reducing prices.