‘Lifestyle City’ can be classified as a premium residential project in the Kalyan belt taking into account the amenities offered in the project. The average property rates in the adjoining area in Kalyan with similar amenities are in the range of Rs. 2400 per sq ft. However we opine that, to arrive at a competitive rate to be compared with ‘Lifestyle City’, this rate should be further discounted on account of three reasons as given below-
Property Price Correction: ICICI Property Services expects a 15% correction in the property prices especially in the Kalyan belt as we do not see property deals happening at present levels of Rs. 2400 per sq ft.
Location: Considering the location of ‘Lifestyle City’ which is beyond Kalyan (Shahad- Ambivali) the rate prevalent in Kalyan needs to be discounted.
Stage of Construction: The construction of the project is scheduled to start only in May 2009, thus we opine that there is a need to discount the property price further.
On account of all the above three factors, even after considering the amenities provided, overall the property rate for ‘Lifestyle City’ needs to be discounted by 30-35%.
The competitive rate thus works out to be in the range of Rs. 1600-1700 per sq ft for saleable area. However the rate quoted for the project is Rs. 1998/- which indicates that it is over-priced.
Given the capital value of each type of apartment i.e. 1 BHK (12.75 lacs), 2 BHK (19.08 lacs) and 3 BHK (24.82 lacs), the average monthly income levels required to purchase the property, assuming that the home buyer opts for a home loan equal to 80% of the Property value for a term of 20 years would be as below –
12.75 lacs onwards
19.08 lacs onwards
24.82 lacs onwards
Considering loan tenor of 20 years and Loan to Value Ratio of 80%.
Type of Apar
Cost of Property
Average Monthly Income Levels required*