Mumbai Real Estate Market Shows Signs Of Recovery As Home Sales Increase

December 7th, 2015

In the last couple of years, Mumbai real estate had drastically slowed down. The increasing demand, sky high property prices, and the lack of upswing in income caused Mumbai real estate to take a direct hit.

But now the economy is beginning to pick up and Mumbai real estate finally has something to cheer about. As compared to last year, property sales have gone up by almost 28% in the last four quarters this year.

Land is scarce and developers are plenty, hence property was being developed at a rapid pace, but there were no customers to buy it and inventory kept piling up. But in the last year, people who were on the fence about investing in a property in Mumbai have realized that capital values are stagnated at the moment and hence many have gone ahead with the decision to make a purchase. For the last two to three years, the capital values stayed constant in spite of an increase in land and construction costs and a 5-8% increase in inflation. With statistics like this, it seems like the ideal time to buy a home in Mumbai.

But those who are waiting for the prices to go down should not have high hopes as this seems to be a rather unlikely event. Considering the land and construction costs as well as the developers’ margins and profits, the chance of prices on homes reducing is very small.

Many interested home buyers have made the link and have recognized that this may be the maximum potential for price correction with regards to Mumbai real estate.

However to push the remaining inventory, there have been other changes noticed. These include discount pricing and offers from developers and builders, reduction in apartment sizes and lower interest rates which are propelling the sales once again. However the number of new launches has drastically reduced and the focus still remains to clear up pending inventory before commencing development of new projects.

But for a city that was hungry for real estate demand for the last few years, even the smallest sign of real estate purchase comes as good news. The last four quarters up till September saw the sale of 16,990 units as compared to the 13,290 units sold in the previous year.

The progress might be slow, but the Mumbai real estate market is surely picking up. Even if it is a gradual increase, the property market is finally beginning to recover.

Top trending builder schemes in Mumbai

October 9th, 2015

With Mumbai real estate market slacking in the year 2015, majority of the builders in the Mumbai Metropolitan Region (MMR) are offering schemes that seem to be not just innovative, but also effective as far as branding is concerned. From the 20-80 scheme to exchange offers, the builders and developers are leaving no stone unturned in exploring new ways to retrieve the old glory of Mumbai’s realty market.

Let us find out which schemes are doing the rounds in Mumbai realty segment and if they suit you well.

1. Ratio Schemes

Have you heard about the scheme where the builder offers a unit with just 20 per cent down payment and a booking amount of a miserly INR 51,000? Well, this is called the 20-50 scheme. Pay 20 per cent of the property price and enjoy the ownership. You have to pay the remaining 80 per cent only when you take the possession. Buyers option to invest in other projects magnify as the allocation in Mumbai usually comes with a delayed completion date.

Other versions of the same schemes are:

  • 10:90 scheme
  • 5:95 scheme
  • 8:92 scheme
  • The loans are funded by the bank and approved as per the borrower’s eligibility.

    2. Take Home on EMIs

    Rather than shelling a cool INR 15000 per month, you can actually own a house in Mumbai with EMI scheme. The EMIs start only when you take possession. It is closely linked to the 20-20 scheme but is for more flexible, especially when you are looking for a permanent house rather than going for a rented one.

    3. Furnished flats

    The idea of “Ready to move In” homes have transformed completely. IN a bid to woo high-end customers, builders are now offering luxury apartments with semi-furnished and fully-furnished amenities. The base price is adjusted accordingly and could easily inflate to 200 per cent of what an unfurnished fat would have cost. Facilities like ACs, refrigerators, beds, furnishings, bathroom fittings, TV sets, microwave and everything you can think of are included in the list of amenities and installations. Advantage for the buyer: You don’t have to battle an eye lid in designing and fitting them. Pay the amount and shift to your dream house.

    4. Guaranteed Rentals

    The builders are attracting the potential buyers with a meaty scheme: guaranteed rentals in possession and post-possession season. It could also be availed as a lump sum amount from the developer in case the client is confident of fetching higher rentals by himself. Apart from the guaranteed rentals, the builder also waives a few points off the base floor price, stamp duty and registration cost for a limited time period or on special occasions like Diwali, Dusshera and New Year.

    5. Smart Property Exchange offer

    Do you own a property in Mumbai or in some other city? Are you planning to sell it? Why not exchange it with the developer in Mumbai and buy a flat here. Mumbai developers are smart to offer exchange schemes. The transaction is adjusted as per the realty trends in the respective cities. This exchange offers are applicable for properties falling in city and town planning segments. Gram Panchayat areas and properties in rural areas are not considered for exchange offers, unless the deal is really tempting.

    Mumbai witnessing slash in house sizes

    August 31st, 2015

    apartment in MumbaiWith the rising real estate prices hurting the pockets of the consumers, builders and developers have introduced a novel way to make housing affordable. No they are not bringing down the prices by engaging in a price war but are cutting the average size of apartments. According to media reports on an average the apartment sizes in Mumbai city has witnessed a decline of almost 31% in the last five years. As a result the high prices apartments are now starting to fall within budget for most buyers albeit with a smaller built up area.

    The reduction in apartment size in not a phenomenon limited to Mumbai and the success of the Mumbai model is now being replicated in the whole of Mumbai Metropolitan Region (MMR) including Mumbai, Thane and Navi Mumbai. Real estate experts feel that builders are following the example of most fast moving consumer good or FMCG companies whereby they reduce the packaging to ensure cheaper price of their products.

    Slash in house sizes to stay: The phenomenon of reduction in size of the apartment in Mumbai is to ensure the project falls into the budget of the buyers is likely to stay for good. Builders have been reluctant to reduce prices especially with areas in the MMR region having a strong fundamental growth. The overpriced projects in certain areas were leading to sluggish sales but instead of lowering costs, builders are now lowering the area to make in a win-win situation for all concerned. Rather than investing in a cheaper apartment in a lesser known area, buyers are eager to invest in posh areas even if it means compromising on the built up area.

    Slashing house size may spread Pan India: Real estate observers and experts believe that with the overwhelming success of the concept in Mumbai and adjoining areas, the slashing of size in apartments has a good reason to get replicated in other areas with a high price index like Noida, Gurgaon and some areas of Bangalore city. Apartment sizes on an average in National Capital Region apartment have already started witnessing a similar trend with sizes getting lowered to as much as 14% compared to some years ago.

    With a lack of horizontal space in Mumbai and high cost of property, going vertical and reducing the built up areas are the only realistic options in front of builders in Mumbai to maintain prices. A higher price index does not help as it results in sluggish sales while the lack of land availability makes it difficult for builders to offer spacious housing at economical rates. The trend of small houses is something which is likely to continue especially with rising real estate prices in Mumbai and MMR areas.

    Impact Of The Property Redevelopment Wave On The Housing Market Of Mumbai

    May 6th, 2015

    Many old buildings in Mumbai are in a very bad state and they’re almost outdated, as they haven’t benefitted from the latest construction technology. The state government has come up with a comprehensive policy to redevelop and renovate the old buildings in Mumbai that need drastic improvements, especially the ones that are in a dilapidated condition.

    Property Redevelopment Wave On The Housing Market Of Mumbai

    Pros And Cons Of Property Redevelopment:

    There are many benefits derived from the redevelopment and renovation of old buildings.

    • Some residents would have the benefit of receiving additional area in their new property, and hence, the carpet area would be equal to or greater than the existing property after reconstruction.
    • There are many possibilities that the reconstructed and renovated buildings will have more floors than the original, old building. As part of the reconstruction and renovation, the developer may offer extra amenities, such as, gymnasium, safety alarms and security systems, extended car parking, and other such facilities that weren’t initially present.

    However, it’ important to remember that if there are positives, there will most definitely be negatives:

    • Many builders can make false declarations by stating that their property is old, in order to capitalize on the profit that would arise from the redevelopment and renovation work.
    • Another burden is that the residents need to look out for alternative housing options, during the period the builder takes to demolish and reconstruct the building. This process usually takes around 18 to 24 months, and residents looking for alternative housing during this time, may find the task to be strenuous, as well as tedious.

    Roadblocks To Redevelopment And Reconstruction

    Procuring consent from majority of the residents would be the first obstacle, because the criteria here is that at least 70% of the residents should give their consent for redevelopment and reconstruction in a housing society.

    Secondly, those properties that come under the Coastal Regulation Zone (CRZ) cannot be redeveloped as such areas are susceptible to sea level variations and floods.

    Lastly, builders will be charged for the extra 0.33 Floor Space Index (FSI) as per the proposal made by the government. As a result, redevelopment and reconstruction projects could be severely hit by the government’s proposal, and hence, this may not be feasible or financially viable.

    So, before you opt for property redevelopment, keep in mind that you will be presented with either a new building or a renovated one, along with additional floor area and better amenities. If these facilities aren’t a definite provision, it’s better to opt out of redeveloping your property.

    4 Reasons Why Mumbai’s Real Estate Market is Slowly Stagnating

    March 2nd, 2015

    Known as the city of dreams, Mumbai has had a thriving real estate market for the past few decades. But over the past few years alone, the real estate market of this city has been decreasing in terms of sales and value. Read on to find out why Mumbai’s real estate market is slowly stagnating.

    Mumbai Real estate

    The property prices in Mumbai has always been considered to be one of the highest in the world. However the real estate scenario is expected to take a turn for the worse over the next couple of months. It’s almost as if the market were jinxed and as a result, this is keeping all the investors on edge. Many developers are now being extremely cautious before launching new projects in this city. Now, all we have to do is wait and see how Mumbai’s real estate market fares in 2015. The following are reasons why Mumbai has undergone this setback:

    1. Piling Up Of Inventory

    High unsold inventory is one of the major reasons why the real estate market will become stagnant in Mumbai. As the response received by many of the new projects launched in 2013 and 2014 has been lukewarm, builders are now staying away from pitching new projects in the city.

    1. Declining Affordability

    Lately, there has been steady supply of high-end flats, but the mid-budget flats have been low in terms of supply. Only 4 bhk and 5 bhk luxury apartments are in great demand in the residential market of Mumbai. Unless property developers are willing to drop prices to the point where it is appealing to middle class buyers, the market will not witness any kind of growth.  Providing housing that meets the end-user budget is the real challenge here.

    1. High Economic Uncertainty

    Economic instability is the reason why the unsold projects in Mumbai are yet to be sold.  Developers are working towards improving the economic conditions of the country in order for the pace of property prices to pick up. The property sector in Mumbai is yet to spring back to life, especially in the housing sales.

    1. Rapid Rise In The Stock Market

    With the advent of the new government, the stock market has been booming and thriving with potential. This adversely affects the real estate market of Mumbai because many investments have dropped, and most of the investors are now trying to monetise their existing assets.

    If the market in a city is stagnant, then the activity is reduced. But if you are unsure about investing in a stagnating market, then the best thing that you can do is just wait and watch, and hope that the real estate market in Mumbai will spring back to life once more.

    More Than 15 Projects Are Underway In Kandivali East Mumbai

    October 15th, 2014

    It has been found out that Mumbai is currently planning for 15 new projects, in the Eastern Kandivali region and this is going to be the best part of the flourishing state. As per the latest statistical reports, it has been found out that there are different property investors and developers, who are going to come under the same umbrella and with various latest residential projects. These are some of the most prominent options, associated with new 15 projects, and these are associated with the upcoming years. The projects, which are under the residential projects, will take place under the Kandivali East solution. These are associated under the various constructional stages.

    As per the latest constructional statements, it has been found out that some buyers can get hold of the finished projects, at the end of this year. However, this is a single area of the Kandivali East option. On the other hand, the other unfinished projects are going to land up at the finished time in between 2015 and 2017. These are some of the major options, which the real estate investors must be acquainted with, before jumping for a final say. These are some of the major options, on the cards.

    After gaining the best information, as gathered from the brokers and also developers, mainly associated with the eastern Kandivali region, it can be finally stated that the increasing zone of the supply option, under the residential property zone, under the upshot location. This is also related with the overall development as well as re-development of the projects, which are currently undergoing, for the betterment of the clients and customers. For the other options, it can also be stated that the increasing rate of the preference, mainly of the house buyers are solely depending on the growing rate of the residential property, mainly related with the eastern Kandivali areas.

    In order to provide the exact statistical survey, some consultancy firm even came out with their own quarterly report, especially of the Eastern Kandivali region. This is related in between the April 2014 and June 2014 quarterly. It shows that at this present scenario. The eastern Kandivali region is holding the fifth position, as the most preferable location for the residents of Mumbai and even outsiders, who are looking for a permanent stay. This statistical result also forced the real estate developers to come across some of the best and 15 new residential projects. According to a leading spokesperson, “This will surely give rise to some of the major profitable deals, under real estate values and will show a growing and development range in Mumbai.

    Last but not the least; it has been also stated that some local broker firms are going to showcase the interest growth of the region. The real estate developments in the Kandivali East region are mostly driven by none other than end-users. Those families, which are related with the upper to middle class segments, can easily buy a property in this segment, where they can enjoy the peacefulness of the greenery and also deal with all the favorable spots, nearby.

    Lodha Is About To Make A Profit Margin Of The 25% On The Special Thane Deal

    October 15th, 2014

    The real estate haunch Lodha has recently bought a section of 87 acres in Thane, under the amount of 1154 crore from none other than Clariant Chemicals. Just at the beginning of the year 2014, the property deals were summing up to an amount of 3000 crore, which took place with the ever growing popularity level. As per the latest option available, Lodha bought 87 acres in Thane, making it a real time and long term investment plans. Ashutosh Limaye along with some of the other companies state that the residential market sales are dropping because of the high price option even though the demand of the land is always high. Moreover, this can also be stated as the basic ingredient of the development associated with real estate Company along with short severe option.

    As per the property dealers, the Thane deal is going to form a win-win situation for both the parties, as bought from the Clariant Chemicals. Limaya says that the entire transactional value is going to turn out to be a fair representation of the real estate dynamics. The prevailing rate is in between the valuable amount of 8500 to 9000 rupees per square feet. He is also going to expect Lodha to achieve a reliable percentage of 25% on the deal, with a great profitable margin, on top of all.

    There are certainly some other activities related with the Thane and Navi Mumbai options and this is related with the eastern suburbs, under the Mulund and Vikhroli and this is also going to witness the better growth of the potential, related with the near future zone. Limaya is also going to see some of the isolated property deals, associated with the western suburbs areas, like in Borivali, which is the part of the industrial area. As per the comments made by the spokesperson, “We are also planning to expect some of the more land parcels, related with the market, under the Thane-Belapur belt.”

    When asked about the Mumbai market condition and also the sluggish nature of this place, the answer which came up was something quite different from the general thought process. The real estate marketers are planning towards two different fields and those are residential marker and the built up space. The market condition is surely going to vary a lot with the moving way. The moving is not that fast and the sales rate were also dropping and the main reason was the growing price range. As land is the basic ingredient related with the real estate development options, there are certain positive options, which the probable customers are dealing with.

    The Lodha facility is going to deal with the actual transacted amount, which is related with the 1100 crore for the zone of 87 acres, related with the land zone. It is also going to be a win-win deal from the buyer and also the seller perspective. The amount of the square foot will rely on the 3000 rupees per square feet notion. These are some of the reliable options, associated with the main field of Thane developmental structure.

    Rising Pollution Levels Of Ulhas River Force Stringent Action Against Industries

    October 15th, 2014

    The city of Mumbai has several industries situated on the banks of the Ulhas River. The residents of the area have complained against the rising pollutants in the water that contaminate the water supply they have. While the river gets polluted, the adjoining areas are facing the problems of unhealthy atmosphere enhanced by the foul odor rising from the once clean and clear water. In response, the authorities have decided to take stringent action against those industries that have reportedly flouted the norms set out by the authorities. Despite repeated notices, the industries have not taken any steps to curb their emissions.

    In retaliation, the National Green Tribunal released an order to the Maharashtra Pollution Control Board directing them to take strong action against the defaulters. They have identified the industries and asked the board to undertake the punishments to those who have not yet reduced their discharges of industrial effluents to under the admissible limits. A lot of industries will find themselves in hot water when the board decides to take action as per the directions from the Tribunal. Promises of immediate action from the MPCB are expected to bring some manner of order into the situation within the next six weeks. The fact-finding must be fair and without bias to make the endeavor successful.

    The tribunal made up of judges Justice V.R. Kingaonkar, and expert Ajay Deshpande heard the application by Vanashakti, an NGO based in Mumbai. They alleged that the pollutants from the discharges of effluents damage the bio-diversity of the surrounding areas along the banks of the River Ulhas. The river itself has severe problems, and they sought a proper cleanup of the river to encourage protection of life in the water body. The sad fact is that the MPCB undertook to perform their duties after the complaint from Vanashakti resulted in the order from the NGT.

    The MPCB inspected the industries and the effluent discharges and identified two defaulters. The latter seem to have used excess water from the tankers. They assured the Tribunal of getting the process underway as soon as possible. The municipal corporation of Ulhasnagar undertook the responsibility to clean up the river and started the process for issuing tenders also. Meanwhile, the parcel of guilt got passed around, and the Dombivali Better Environment System Association became the scapegoats. The MPCB alleged that the CETP was inadequate and didn’t match the official requirements. As a result, the bank guarantee for the Dombivali Common Effluent Treatment Plant was jeopardized with forfeiture.

    Although it is better for all if the pollutants are kept away from the water bodies, the possibility of that happening is next to nil. Therefore, the limits accepted for the effluent discharge was already specified for the industries. They can discharge up to 2200 mg per liter of Chemical Oxygen Demand. It reaches the Common Effluent Treatment Plants to reduce the levels of the malignant components. Finally, when the discharge reaches the river, it should be no more than 250 mg per liter. While MPCB has found many industries were not following these mandates, it shows a serious lack of respect for the life of others.

    Mumbai Is Offering Some Luxurious Real Estate Options Under Penthouse Versions

    August 13th, 2014

    Now, it is time for all to enjoy the best and spacious living option in Mumbai through the penthouse option. This can also help you to land up with the best way of living through a high-rise section in Mumbai region, with plenty of spaces, under the sleeves. Moreover, the real estate developers are going to offer you with the best penthouses, which are on sale. On the other hand, there is a high-net worth individuals or the tradesman’s segment and there are top management classes, associated with IT sectors and also banking areas. These penthouses are also going to define luxury when the main area of concern is related with spacious living areas.

    As per the official of the penthouse services, “Location as well as space matters a lot, when the main area of concern is associated with Mumbai. In maximum instances, the buyers only fall under the HNI service. However, in some instances, NRIs also show a little bit of interest in these penthouses, which are either well-furnished or unfurnished in nature. These are associated with best ever prices.” Moreover, the NRIs are going to move out with the accommodations as these are going to move the market on another higher scale. You can also try and land up with handsome return rewards, for the betterment of the clients, mostly the HNI and NRIs.

    Penthouses of Mumbai are mostly located in some of the busy street centers, in order to help the owners enjoy the best benefits of a strategic location. Moreover, apart from enjoying the services, they still have the liberty to stay above the ground than others. One such place, where penthouses can be availed within lucrative rates can be stated to be the Chembur region. This is located just in between the Navi Mumbai and South Mumbai regions and here; people can also enjoy the benefits of the Eastern Freeway option. Moreover, there are also the Monorail services in this area, which can also increase the value of real estate service.

    The connectivity of Chembur makes it a reliable option, when the main area of concern is related with penthouses in Mumbai. Be it any part of Mumbai, you can reach your destination with 20 minutes of driveway, in your hand. The prices in Chembur are somewhat a little bit expensive due to such good infrastructure services and it is going to range in between 2.5 to 18 crore rupees. The accommodations are going to be within the area of 8000 square feet. Apart from the Chembur region, Juhu can also prove to be a reliable option for all to get hold of.

    Juhu is stated to be a VIP location, where the prices of penthouse will surely be an example of rich goers. On the other hand, if you are looking for the best penthouse services near the IT hubs or sectors, then Worli can be your one-stop solution to deal with. You can also stay closely connected with the engineering colleges and IT sectors as located in Worli.

    Campa Cola Residents Take The Final Stand To Preserve Their Homes

    August 8th, 2014

    The final stand is being taken at the Campa Cola Society in Worli, Mumbai, where BMC is all poised to strike the killing blow to the 102 illegal apartments which have been ordered by the Supreme Court to be closed off and demolished. There have been numerous protests and pleas; many doors knocked, but to no avail. The last stand that the residents are prepared to take are to form a human barricade. They hope to dissuade the BMC officials who have to cut off the various amenities such as water, electricity and water supplied to the apartments. The residents are under the hope that they will be able to get the apex court to reconsider the request and legalize the property.

    The residents had been asked to leave on Tuesday, but the sudden death of a resident and the expected arrival of his son to perform the last rites, made the BMC extend the time limit to Friday the 20th of June. However, when the officials reached the society, they found the iron gates locked up and barred with bamboo poles. The human barricade was also in place with the women making up the first level of defence. They hope to get the officials to leave and get the court to give them some more time to come to terms with the decision.

    The residents are getting a lot of support from various groups but with the Supreme Court’s ruling, it has become impossible to intervene and they have been left to fight their own battles. Monsoon in Mumbai being as it is, moving homes would not be a viable option for the residents. Additionally, the number of flats is not small which would allow them to be relocated easily. Commiserating with the plight of the residents, the Union Urban Development Minister has cited the helplessness of the government in contradicting the ruling of the court.

    However, with the stand taken by the residents, things have come to a head and there could be dire repercussions for what the residents have done. BMC had already warned the residents that any failure to comply with the court’s direction will incur a lot of trouble with the obstruction considered contempt of the court. As it is already on the wrong end of the stick with the apex court, it would have been better if the residents had left the first time they had been asked to peacefully, two decades ago.

    The apartments have been under dispute for a very long time and for most of the three decades of its illegal existence. The residents had bought it off the Pure Drinks Pvt. Ltd which had acquired it and later developed it into flats. Since then there have been numerous problems they have been forced to face and with the court’s ruling a lot of the hopes of the people have been dashed to the ground. They claim that BMC had already agreed to regularize the apartments back in 1986, after collecting a sizeable amount of the fine it had imposed. The authority seems to have failed in keeping to it and the society could become a name and event in history.