Mumbai real estate bosses were forced to take some drastic measures to keep up the interest in real estate in the city, after there was a slump in the beginning of July. The total real estate intake of the city was been left at just thirty percent of what it was. Of course prices have been affected by this slump with them going done anywhere between 10 to 15 per cent in most places. Industry insiders say that this is also the case in Delhi.
Affordable Housing in Mumbai is what Everyone Wants
Today, for many people in Mumbai, owning a house is a distant dream. The rates of real estate are quite unaffordable to the middle class man. Many people look at properties that are away from the main cities to far off suburbs such as Vasai, Virar etc. But a number of people find even these places quite unaffordable. In addition, many complain that the crowd and the amenities are just not worth it.
Mumbai real estate developers, Housing Development and Infrastructure Ltd, is predicting a drop in real estate values all over the country of 25% this year
But their predictions don’t hit the Mumbai property investment market really hard as they say that their prediction of the drop will exclude Mumbai which will experience considerably less of a hit – a 10 per cent drop instead. Prices they say, in Mumbai will fall by 10 to 15 per cent. This expected fall in Mumbai’s real estate rates will be lower than the rest of the country’s rates because of the constraints in supply.
Real estate in the busy, bustling, on-the-move city of the rich and famous – Mumbai, is something that is always in the news, for it’s rapidly evolving scenario.
In the latest news, Alok Industries in a joint venture with Ashford Infotech will acquire and develop office space spanning over a million square feet in suburban Mumbai. The venture will cost billions of rupees to develop.
Matheran Realty, a real estate firm based out of Mumbai has proposed to develop huge township for the ‘low-income’ group of people at Karjat, located on the outskirts of Mumbai. The company says that it will build about 10,000 houses using technology sourced for an Australian company and will boast all facilities like shopping malls, super markets and entertainment arenas.
In other news, the slums around Mumbai airport face closure following a directive from the government. The slums are probably the first thing people see while landing in Mumbai and will result in thousands of people standing to lose their homes. The slums are a goldmine for developers given Mumbai’s exorbitant land prices. In a related incident, over 6,000 slum dwellers blocked roads and protested the re-development project initiated by the government. The people of the Dharavi slum protested the fact that thy will have nowhere to live when the government begins work through a private firm to build free schools and healthcare establishments for them. The re-development is said to take over 7 years to complete.
Land sharks are popping the champagne after the Maharastra government repealed the Urban Land Ceiling & Regulation Act (ULCRA). The act that restricts development on big land holdings has been relaxed. The good news it is that it frees up over 1,00,000 acres from the government for development. The companies standing to benefit from this include Godrej, Wadia Trust and Hirandani Developers.
In other gossip, let’s talk about the Ambani’s with their dream home ‘Antilia’ being built on Altamont road in Mumbai. It comprises 27 floors boasts of 3 helipads, parking floors for their imported cars, an entertainment floor, guest accommodation, health & fitness areas and a whole lot more – all just for the Ambani’s! The Ambani’s new home will be the talk of the town once completion in September this year. If you’re wondering what land costs in the area hold your breath – 75,000 rupees ($ 1,912) a square foot!
The Mumbai real estate market is enjoying a high time. There is a real estate boom in India and after Gurgaon and Delhi, Mumbai is the next most popular hub where people are moving into in great numbers. There has been a marked enhancement in the supply and demand in the micro markets. The investors have been trying to foray into the real estate scenario investing into retail sectors, residential sectors, and banking, insurance and IT/ITES sectors too.
