Mumbai real estate market – an overview for 2014
Dec 24, 2013
Source : The Times of India


MUMBAI: The year 2013 was an eventful year for the Indian Real Estate sector with the introduction of the Real Estate Regulatory Bill and the Land Acquisition Bill in the parliament. With such developments happening, there is high optimism about the coming year – 2014. There is hope that 2014 will see a positive shift from the earlier years and will bring in the much required stability and transparency in the property market. Mumbai’s real estate market too, expects to see stability and healthy trends in 2014.

With the BMC sanctioning plans almost after two years, there has been a huge relief to the long pending projects, which will finally be launched now. As a result, the city’s performance is expected to pick up considerable pace in the coming year. Now that the government has finally recognised and realised the woes of this cyclical industry, their small steps are also providing a big boost to the business. With several new launches hitting the market in 2014, the customer sentiments are expected to improve, giving the market a new face altogether. The second half of 2014 is expected to witness a rise in property prices due to rising cost of materials, labour and cost of funding.

Mumbai market has been a fragmented one due to it being a low island city. As a result, the micro-markets behave very differently from each other. For instance, as we go away from the city, there is a large demand for 2 to 3BHK units, while within the city, 4 to 5BHK luxury apartments costing between Rs 1-5 crore are most sought after. In terms of supply, Mumbai has seen a steady supply of high-endproperties but there has been a very low-key interest in the mid segment category.

There is a huge demand for mass housing or affordable houses in Mumbai, but currently, it cannot be met due to high land prices. For this reason, the city needs to meet this gap with solutions such as rental housing and subsidised homes. Buyers are hoping for all-round reforms from the government, especially administrative, land, fiscal, tax and banking reforms that will boost growth and help in reduction of prices.

However, in spite of a huge demand for housing in the mid and affordable segment category, the government has not been doing enough to make it financially viable for developers to undertake such projects where the demand is phenomenal. While there are several speculations over what the government may do to boost the market, there is still a lot to look forward to in the coming year.

Latest Realty News

Small-cap, mid-cap stocks shine as Sebi relaxes norms for trading in illiquid stocks
Dec 23, 2013
MUMBAI: A bout of volatility was witnessed as key benchmark indices recovered from lower level after trimming initial gains in morning trade. The market breadth, indicating the overall health of the market, was strong. The market sentiment was boosted by data showing that foreign funds remained buyers of Indian stocks on Friday, 20 December 2013. The barometer index, the S&P BSE Sensex, was up 86.68 points or 0.41%, off close to 40 points from the day's high and up about 85 points from the day's
Banks try to attract home buyers with low interest rates
Dec 23, 2013
MUMBAI: Barely days after the Reserve Bank of India (RBI) surprised the Street by keeping the repo rate unchanged, banks and mortgage lenders have started lowering the interest rates on home loans.
Campa Cola residents hope new SC bench will resolve issue
Dec 23, 2013
MUMBAI: Members of the beleaguered Campa Cola compound in Worli have expressed relief after the chief minister on December 20 assured them of help. Privately, however, they are relying more on their review petition that comes up for hearing before the Supreme Court on January 6.
Now, e-payment of stamp duty a must in Mumbai
Dec 22, 2013
MUMBAI: From December 23 and it will be mandatory for citizens to pay property stamp duty and registration fees through electronic secured bank treasury receipt (eSBTR)-an online payment service available round-the-clock.
Developers’ goodwill connects well in redevelopment of Mumbai
Dec 21, 2013
MUMBAI: A look at the changing face of the redevelopment segment in Mumbai suggests that it is the developers’ goodwill that connects better in this segment rather than any clout whatsoever. Analysts maintain that redevelopment is an inevitable reality in the city’s development and its perception is definitely seeing considerable improvement. People have also started realising that it is the only efficient method to transform the city’s graph. Planned redevelopment enables the maintenance of ass
Office space absorption down 25% in 2013: Cushman & Wakefield
Dec 21, 2013
MUMBAI: The total net office space absorption recorded a 25 per cent decline across top eight cities over the last year at 23 million square feet (msf), according to the annual estimations by global real estate consultancy Cushman & Wakefield.
‘Walk Score’ gaining importance in Pune real estate
Dec 21, 2013
PUNE: Abroad, a new trend of evaluating neighbourhoods by their ‘walk score’ is being seen among home buyers. The idea behind this is simple and in fact is the very basis of that favourite real estate mantra ‘location, location, location.’ And it has great pertinence for the Pune real estate market as well.
Where to look for affordable homes around Mumbai
Dec 21, 2013
MUMBAI: Mumbai, India’s commercial capital and one of the most thriving city, pulls in hundreds of people from all over the world with education and professional opportunities. Everyone comes here with a dream of owning a small space and feel one with the surroundings. But the reality is that owning a home in Mumbai is a distant dream for many looking for property within Rs 20-35 lakh, thanks to the skyrocketing property values.
For old world collectors, a painting was more than property
Dec 21, 2013
MUMBAI: Long before art was viewed as an investment, valued as arbitrarily as a high-rise flat (with plunge pool), there were two small art galleries in the city, Chemould and Pundole. Both opened in 1963, in old-world Fort, before Flora Fountain became Hutatma Chowk. Both were run by Parsis, the Gandhys and the Pundoles who, also coincidentally, started as framers. Both shared a healthy rivalry and a simple motive--to nurture artists and sell paintings.
Sebi proposes to separate framework for InvITS
Dec 21, 2013
MUMBAI: Looking to attract more investments into the infrastructure sector, market regulator Sebi today proposed to set up a separate framework for Infrastructure Investment Trusts.

Latest Realty News Of State

Realty Talk's