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Old 12th November 2012, 15:53   #1
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Unhappy Car Parking costs a whopping Crore in Mumbai

For space crunched Mumbai, closed parking is a premium and now equivalent to the cost of the house. Imagine shelling out a Crore rupees to get a closed parking in Mumbai is something unheard of. See the link for details.

http://timesofindia.indiatimes.com/c...w/17187729.cms?

Arguably the city builders have disregarded the SC ruling that parking cant be sold by the developers. To think of I had to pay mere 50K for a covered parking in 2008, buying and selling car parkings now is the most profitable business I guess.

Mods: Could not find any appropriate thread, pls move if any exists.
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Old 12th November 2012, 16:51   #2
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Default Re: Car Parking costs a whopping Crore in Mumbai

Not really news, garages of some buildings in Cuffe Parade have sold for over 1 crore. It's funny when you see the new owner parking a regular C2 or D1 segment car (typically Honda City, Toyota Corolla, Skoda Laura) there
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Old 12th November 2012, 19:04   #3
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Default Re: Car Parking costs a whopping Crore in Mumbai

Whoa! Way to go MUMBAI! Its just a matter of time before other metros in India join the bandwagon, if not already.

Just can't help but quote this stunning anecdote of a smart multi-millionaire!

Quote:
A Chinese man walks into a bank in New York City and asks for the loan officer. He tells the loan officer that he is going to China on business for two weeks and needs to borrow $5,000.

The bank officer tells him that the bank will need some form of security for the loan, so the Chinese man hands over the keys of his new Ferrari parked on the street in front of the bank. He produces the title and checks out.

The loan officer agrees to accept the car as collateral for the loan.

The bank’s president and its officers all enjoy a good laugh at the Chinese man for using a $250,000 Ferrari as collateral against a $5,000 loan. An employee of the bank then drives the Ferrari into the bank’s underground garage and parks it there.

Two weeks later, the Chinese man returns, repays the $5,000 and the interest, which comes to $15.41. The loan officer says, “Sir, we are very happy to have had your business, and this transaction has worked out very nicely, but we are a little puzzled. While you were away, we checked you out and found that you are a multi-millionaire. What puzzles us is, why would you bother to borrow $5,000?”

The Chinese man replies: “Where else in New York City can I park my car for two weeks for only $15.41 and expect it to be there when I return?”
Source: Internet
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Old 12th November 2012, 19:30   #4
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Default Re: Car Parking costs a whopping Crore in Mumbai

Even I was agape when i read the news today morning ! Exorbitant is the word.
As GTO has stated, real estate prices have really shot up in "Aamchi Mumbai" touching the sky which includes parking spaces too. IMO South Bombay(SoBo) is quite saturated and inundated in terms of parking space. At night nowhere else in Bombay you will find so many cars parked by the roads as in SoBo ( which includes cars of the likes of 5 series etc.) No doubt SoBo is the poshest area of Mumbai, but parking is a matter of concern.

@Warwithwheels - Yes i have read the anecdote, but apparently the Chinese man was replaced bye Mr.Mallya in that version :P


-Bhargav
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Old 12th November 2012, 20:22   #5
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Default Re: Car Parking costs a whopping Crore in Mumbai

The news got me thinking, how does finances work out on these apartments. With such exorbitant cost of parking space people might only buy the apartment and not the parking as it does not make sense. Making it un-used and eventually loss to the builder.

Why would they want to build something and price it at a level, which folks would not buy? Or i am missing something here?
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Old 12th November 2012, 20:32   #6
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Default Re: Car Parking costs a whopping Crore in Mumbai

I dont see why people are surprised. It is part of a piece of land. It is covered, hence there is a cost to it, because under the development rules, it is covered under the FSI (Floor space index) or such. Basically you are limited by urban planning laws in how much space you can build up.

Let's not forget in those parts, even a room costs you a few crores. So a car parking costing 1 crore is perfectly normal - they could've built up another flat in that FSI of a few parkings and sold that for crores, no?. We are not talking of a tier-III city, but of the primest of prime real estate in India. Every square foot of it is more precious than gold

@GTO - imagine a santro inside such a garage!

Last edited by phamilyman : 12th November 2012 at 20:33.
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Old 12th November 2012, 20:45   #7
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Quote:
Originally Posted by mayankjha1806
The news got me thinking, how does finances work out on these apartments. With such exorbitant cost of parking space people might only buy the apartment and not the parking as it does not make sense...
Customers don't have a choice at times. I remember checking with a famous builder in Bangalore once, they said 2 BHK will come with 1 parking (5L extra) and a 3 BHK will mandatorily come with 2 parking slots, which the customer HAS to buy.

If the customer want only one parking, then he needs to buy ONLY a 2 BHK.
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Old 12th November 2012, 20:57   #8
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Default Re: Car Parking costs a whopping Crore in Mumbai

This is not only the case in South Mumbai. Such instances are pretty common in North Mumbai too. A very good friend of mine stays in a Raheja property in Malad which does not have any open parking. All stilt or basement parking. Moreover if you don't have own parking you cannot buy a vehicle and get it inside.

Another interesting part is his neighbor at the time of buying the apartment bought surplus parking slots which he has now rented to members. And mind you he is charging 8k per month as rent
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Old 12th November 2012, 21:14   #9
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Default Re: Car Parking costs a whopping Crore in Mumbai

God, our apartment in SoBo, used only very occasionally when we get there, has TWO spaces. We don't even have a vehicle there, and uses rented cars (cannot stand the chaos, doesn't know much Hindi, and uncomfortable with these new map devices). Though our office space is smallish 500 sqft or so, but we have one parking space there too.

Perhaps we should try to get at least one sold- ha, then I can buy a M3 without losing sleep over indulgent spending!
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Old 12th November 2012, 22:11   #10
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How long can these really sustain? Especially when we are becoming a more import market. Industrial or agri output is record down, but consumption is high.
The real estate prices have gone so high in some parts of India, that even Munich or New York seems lot cheaper.
Thanks to the so called 'boom'. But is this bubble waiting to burst?? I'm not skeptical or sadist, but realistic.

Some parts of bangalore that has no roads or water, is selling for a fortune. All apartments in hosa road, sarjapur road, devahahalli, and whitefield are selling in upwards of 2 crore with no basic amenities. I see water tankers fulfilling most of water needs, and ask a simple question; how long will they sustain?
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Old 12th November 2012, 22:35   #11
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Default Re: Car Parking costs a whopping Crore in Mumbai

Builders see to it that prices do not come down.

Know of an apartment complex in Malad, where the builder (known for quality construction), quoted about 50 % higher rate than other projects in the vicinity. Obviously, he could hardly sell anything. Still, he kept increasing prices every year.

Finally after about five years the entire complex was sold out at more than double of what he had quoted to start with.

There is also the joke about how the boom really started.

An arab landed at a builder's office when the builder was not there and asked for prices at Nariman point. There was a clerk in the office, who quoted a price of Rs 2000 per sq ft, hoping to get rid of the arab. The arab pulled out his check book, and the clerk had to call the builder, who came rushing. The clerk got a huge bonus. Price at that time in Nariman point was supposedly just 230 Rs per sq ft!

The prices in the big cities are are just ridiculous. They will not fall because most of the big builders have huge pockets.
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Old 12th November 2012, 23:20   #12
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Default Re: Car Parking costs a whopping Crore in Mumbai

Note from Mod: There are several spelling & grammatical errors in your posts. This negatively affects the board experience for other readers.

Kindly ensure that you proof-read your posts prior to submission. Also, it would be a good idea to use spell-checkers.

Last edited by GTO : 14th November 2012 at 17:45.
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Old 12th November 2012, 23:47   #13
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Default Re: Car Parking costs a whopping Crore in Mumbai

Hi everybody
MGH
The builders and developers have made so much money in the past that they can dictate and get their prices.
80 lakhs to 1 crore for parking in Samudra Mahal !!In mid 80s it was one of the few buildings which did not have the sign"No parking for outside vehicles"The open space was so big.
Yes it is illegal to sell parking space but this supreme court directive is not implented .Same thing SC has banning cooking on streets but is it effectively implemented.The difference with sun film implementation is that a motorist is a soft target and has no voice nor backing.
Regards
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Old 13th November 2012, 02:39   #14
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Default Re: Car Parking costs a whopping Crore in Mumbai

Quote:
Originally Posted by mayankjha1806 View Post
The news got me thinking, how does finances work out on these apartments. With such exorbitant cost of parking space people might only buy the apartment and not the parking as it does not make sense. Making it un-used and eventually loss to the builder.
Well the parking spaces which cost a crore, are in buildings where an apartment is 20+ crores, infact one of those buildings had sold a flat at one lac per square foot I think.
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Old 13th November 2012, 05:10   #15
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Default Re: Car Parking costs a whopping Crore in Mumbai

Quote:
Originally Posted by harishpr View Post
But is this bubble waiting to burst??
I don't think it may happen in India as it happened in US. Even in case of a financial emergency, property will be the last choice to sold out for us. And this is the best choice of investment for many. I am in hunt for an apartment in Bangalore for past one year and every were what i saw is even if development in those area is minimal, prices will be at a higher level saying about the future development after a 10 or 15 years. A car park costs min 2.5lk inside Bangalore city and outskirts which are almost villages. reason from builder "All builders are quoting the same sir". Only way to own one is to get it asap.
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