Bandra, Mumbai’s costliest real estate belt, flat rates soar 300% in 6 yrs

[This is another attestation of the fact that, increase in interest rate does not affect the prices too much, when the demand is very high. I have been shouting this since the last few months, but without much effect. Therefore, the RBI's decision to increase rates had a devastating effect in escalating the price of properties in and around Bombay (Mumbai), with property prices, shooting over the reach of the common man.  Is this a way to solve the problem? Or it increased the problem!! This makes me feel, that either the FMO or the present team of RBI is a joker who lacks brilliancy in solving things, taking a different route altogether or away from the conventional methods. 
That is why I say, "Innovate" and don't go for bookish solutions!! But the irony is that most of the economist whom I see speaking on TV follow copy-book-styles (almost all saying the same thing or monotonous/repeted things).....

India needs to revamp its education system, or else we will have these kinds of "Committing and Vomiting type Specialists"....!! Kindly look at the US, as  how they revived a severely damaged economy and look at our UPA Government, and how they systematically destroyed a brilliant economy gifted from the NDA. Really something to ponder...when we have an economist and a former RBI governor as the Prime Minister of India...!!!!!!!!!!!!!!!].

Bandra-Khar (west), Mumbai's costliest real estate belt outside the island city, exemplifies the unrealistic property prices despite a market meltdown.
Bandra's Carter Road, Bandstand and Pali Hill are trying to catch up with Cuffe Parade and Malabar Hill. Prices in these upmarket suburban enclaves here have spiralled to between Rs 40,000 and Rs 60,000 a sq ft from Rs 15,000 per sq ft only six years ago.
In a recently completed luxury building on Pali Hill, which was recently mired in controversy over construction violations, the developer is believed to be quoting a mindnumbing Rs 75,000 sq ft (carpet area) and has sold apartments at close to Rs 40 crore each.
Recently, a 1,140 sq ft flat (carpet) on Pali Hill was sold for Rs 7 crore. A sea-facing apartment of similar size on Carter Road has received offers of up to Rs 9 crore-the owner wants Rs 11 crore. Elsewhere in Bandra-Khar , the average rate is Rs 25,000/sq ft.
Even tiny one-BHK flats in old buildings are being quoted at Rs 1.5 crore while 2-BHKs command around Rs 3 crore. In brand new towers , builders demand 20% to 40% in cash upfront, encouraging only those with black money to invest.

News Body, Courtesy: The Economic Times