In FY 12-13 Mumbai expected to see more residential projects

Published: 17th April 2012
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Most developers in Mumbai, the financial year 2013 will spell focused on execution of projects which are expected to obtain approvals under the new Development Control Regulation (DCR) norma. As said by Vice-President-Corporate Planning & Strategy of RNA Corp Mr. Manoj John Much of the last year was seeking clarity or awaiting administrative action on plans submitted and they are hopeful of commercial work on their residential property in Mumbai to ensure completion without further delay.
Vice-Chairperson of Nahar Group, Manju Yagnik avers that they have already launched 40 plush residential towers and buildings at their township property in Mumbai. They would be launching more aesthetically designed projects in Mumbai and other locations during this financial year. They are set to launch two super luxury residential towers at their township.
Focused on completing and commissioning two major projects by mid-2012 the first is an ICSE School and the other being a medical center, both bringing immense benefits to the residents of their township.They have also firmed up two luxurious residential projects: one each in Pune and Chennai which would be launched this year 2012.
The construction activity is on in full swing at this township for completing yet another two residential projects a huge podium of about 9 Lakh sq ft. This podium is designed to host 22 luxurious residential towers having the largest parking structure a three storyed-parking facility for about 4000 cars below the ground floor level.
As said by Bharat Mody, CFO, Hubtown Limited Focusing more and more on execution of their existing residential property and selling their finished assets in innovative ways. Eg. They have recently launched a scheme where they are offering ready possession property at 40% down payment with rest coming in monthly installments over five years at a much lower interest rate of 9% than the 15% being usually charged by banks and institutions.
Various established developers of Mumbai would continue to face challenges and would need to work on economies considering the current marginal rise in various taxes towards procuring land besides escalation in prices of raw materials. The construction costs, land component, among other charges from the principal cost factors, which have risen steeply over the years.
Also the rise in input and labor costs are a reality and as a developer they need factor in these considerations and design their products accordingly
Recently announced budget, the external commercial borrowing (ECB) for low cost housing extension of the one percent interest subvention scheme for low cost housing and service tax exemption on low cost housing up to an area of 60 square meters are good for the sector. As this budget will give a boost to an affordable housing and developers in the city are already realizing it.
The developers are hopeful that RBI will consider reducing the repo rates and subsequently help in lowering of interest rates for home loans thus benefiting the end customer.

In todays' world there is a high demand and less availability of land has led to an overload on the infrastructure provisions like power, water and so on but it is still a favourite place to live for expatriates and top executives of multinational companies. This is the major reason why the rentals of the residential property are highest in the whole of Mumbai. As today multinational corporate houses and BPOs is setting up state-of-the-art production units in the suburbs. Residential Real Estate of Mumbai in few areas such as Bandra, Santacruz, Andheri and Powai etc. have shown a record growth and some major residential leases and sale transactions in the last three quarters.

Last year many developers have launched there new residential property most of these property are luxury and super luxury projects in locations like Lower Parel, Bandra, Kalina, Andheri, Goregaon and Powai. The pricing of these residential property in Mumbai are depending on location and amenities provided in these project by the developers. There are some locations in Mumbai such as Bandra, Kalina, Goregaon and Andheri East in western suburb and Powai, Ghatkopar and Vikroli in central suburbs and Panvel in Navi Mumbai are growing fast as activity in commercial real estate is fuelling residential demand in these areas. These areas is now turning into a wealthy suburb, fast booming with infrastructure and recreation options by the builders like RNA, Runwal, Dheeraj are among others have started premium residential projects in this area making them an active real estate market location.

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