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  • Real Estate A Golden Egg.: Basic Terms

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    This document summarizes key terms and trends in the Mumbai real estate market from 2002 to 2011. It shows land prices nearly tripling over this period while construction costs rose over 80%. For a typical 1200 square foot 2 bedroom flat in suburban Mumbai, the document estimates the total development cost at Rs. 8000 per square foot and the selling price at Rs. 11200 per square foot to allow for a 40% profit margin. This translates to a sale price of Rs. 1.47 crore but an actual payment received of Rs. 1.24 crore, yielding a "Golden Egg" profit of Rs. 23.6 lakh.

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    Real Estate

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    This document summarizes key terms and trends in the Mumbai real estate market from 2002 to 2011. It shows land prices nearly tripling over this period while construction costs rose over 80%. For a typical 1200 square foot 2 bedroom flat in suburban Mumbai, the document estimates the total development cost at Rs. 8000 per square foot and the selling price at Rs. 11200 per square foot to allow for a 40% profit margin. This translates to a sale price of Rs. 1.47 crore but an actual payment received of Rs. 1.24 crore, yielding a "Golden Egg" profit of Rs. 23.6 lakh.

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    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    9 views4 pages

    Real Estate A Golden Egg.: Basic Terms

    Uploaded by

    nehakhavte
    This document summarizes key terms and trends in the Mumbai real estate market from 2002 to 2011. It shows land prices nearly tripling over this period while construction costs rose over 80%. For a typical 1200 square foot 2 bedroom flat in suburban Mumbai, the document estimates the total development cost at Rs. 8000 per square foot and the selling price at Rs. 11200 per square foot to allow for a 40% profit margin. This translates to a sale price of Rs. 1.47 crore but an actual payment received of Rs. 1.24 crore, yielding a "Golden Egg" profit of Rs. 23.6 lakh.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 4

    Real Estate a Golden Egg.

    Basic terms:
     Fsi = Floor space index
     Tdr = transfer of development rights
     Carpet area = Actual area.
     Bulit up = carpet * 1.2 (20 % rise)
     Super built up = carpet * 1.4 (40% rise)
     Area sold = Sellable area (Super built
    up)
    Land & Flat rate trend (Sq ft)
    Land rate (Fsi 1) Residential rate

    2002: Rs 507 2002: Rs1468


    2006: Rs 920 (81%  2006: Rs 2184 (49%
    Up) Up)
     2011: Rs 6310 (188%
    2011: Rs 3160 (243%
    Up)
    Up) Cost:
    Const
    2002: Rs 512
    2006: Rs 790 (54% Up)
    2011: Rs 1490 (89% Up)
    Actual development reality: (Rs/Sq ft)
    Mumbai Sub urban area:
    Cost of land per Sq Ft. 4000
    Const Cost. 2000
    Architect + Municipal Prem + Misc 1000
    Interest rate @ 14% 1000
    Total Cost 8000

    Selling Price @ 40% Profit: 11200


    The Golden trap:
    2 Bhk flat of 1200 Sq ft on15th floor
     (-) 40% loading: 720 sq ft Carpet
     Actual 720 + 40% = 1008 Sq ft
     Flat Price: 1200* (11200 + 10% floor rise)

    = Rs. 1200*12320 = Rs.14784000 (Rs1.47 Cr)


     Actual Payment = 1008*12320 = Rs 12418560 (Rs
    1.24 Cr)

     GoldenEgg: Sell – Actual Price = Rs. 2365440 (Rs


    23.6 Lac)

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