Mumbai TDR prices to cool down by more than 20%

Prices of transfer of development rights or TDRs in Mumbai have softened by around 20% in the past couple of months, reports Priyanka Ghosh from CNBC-TV18.

When Oberoi Realty lapped up 3 lakh square feet of TDRs at just Rs 2100 a square foot, some market analysts called it a freak deal. They said the deal price was 30% below the average rate of Rs 3000 a square foot. However, sources tell CNBC-TV18 that TDR prices in Mumbai are definitely headed south. In the last two months, prices have cooled by 15-20%. On average, TDR prices range between Rs 2500-2600 per square foot. While prices in areas like Bandra are still holding up at Rs 3000 a square foot, Goregaon and Andheri are witnessing deeper cuts. While one leading supplier HDIL could not be reached for comment, DB Realty says TDR prices have slipped to Rs 2700 per square foot. A buyer from the Hiranandani group, says average prices stand at Rs 2600 a square foot, while another active buyer in the suburb quotes a price of just Rs 1500. A poll conducted by CNBC-TV18 on five leading brokerage houses indicates that prices are near Rs 2,560 a square foot. Pujit Agarwal, MD of Orbit Corporation, said,