Trends that have changed the realty graph in Mumbai

Mumbai

Fuelled by an improving job market and the resulting first time homebuyers, overall Mumbai remains an attractive place to invest in real estate. Mumbai continues to offer comparatively good value for money, and this is the key driver in the majority of buying decisions.

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In the following pages, a detailed area wise analysis is presented by the international property consultant, Cushman&Wakefield (C&W), which advises and represents clients on all aspects of property occupancy and investment. As per the C&W report, Mumbai witnessed nearly 4,000 unit launches during the first quarter of 2015, registering a decline of 63% from the same period last year. Around 92% of units launched in the first quarter of 2015 were in the eastern suburbs. Mid and high-end segment contributed 49% and 51% respectively to total unit launches during the quarter. Due to launch of a premium project with large unit sizes in Mulund, 3BHK units dominated launches this quarter with a 53% share, followed by 2BHKs with a 24% share. Although the number of projects launched in this quarter declined by 71% from the previous year, the average number of units launched per project increased by 27%, from 446 in the first quarter of 2014 to 567 in the current quarter. Due to stable demand, average year-on-year quoted capital values increased by 3-8% across all segments of western suburbs submarket.

Here's the lowdown on three of the recent trends that have dramatically impacted the realty graph in Mumbai in the past few quarters.

Connectivity, infrastructure as the buzzword

With the commencement of Monorail and Metro services, the real estate prices due to the connectivity offered by these locations are gaining traction. Infrastructure projects have always had significant positive implications for the real estate market, especially in an infrastructure-challenged city like Mumbai. Parel is one example of multiple infrastructure initiatives driving an area’s real estate market. Initially, Parel gained prominence as a residential destination because of its proximity to Lower Parel and Bandra Kurla Complex (BKC). However, with several infrastructure initiatives such as the Chembur-Wadala monorail and the Eastern Freeway, Parel saw a rapid increase in residential demand, resulting in the doubling of property values over the last three years. The real estate market in areas such as Andheri, Ghatkopar and Wadala, is seeing an upward trend, owing to existing and upcoming infrastructure developments.

Metro has significantly boost to residential development in Andheri which has been typically proclaimed as a commercial hub and is logistically well-connected to the Western Express Highway (WEH), offering quick access to commercial hubs like the Bandra-Kurla Complex (BKC), Lower Parel and the eastern suburbs like Ghatkopar, Vikhroli.

As per C&W report, many new project launches were between Kanjurmarg and Mulund where erstwhile industrial land is being redeveloped. End-user demand remains high in the eastern suburbs due to presence of good social and physical infrastructure.

SOurce - TOI 

Residential towers in Mumbai's BKC to rise higher

Residential towers in the Bandra-Kurla Complex will rise higher. The state urban development department last week hiked the floor space index (FSI) for residential plots in G-block in BKC from the present 3 to 4.

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 It was already hiked to 4 for commercial properties in 2007 when Vilasrao Deshmukh was the chief minister. The FSI for the rest of BKC remains unchanged.A senior MMRDA official said around 12 hectares of the 130 hectare G-block is reserved for residential purpose. Of this, four hectares have already been auctioned off. The land price at the time of auction five years ago was Rs 3.52 lakh per sq metre for built-up area.

"We are now exploring possibilities of auctioning the remaining 8 hectares," said the official, adding the height of the buildings will be unaffected by aviation restrictions.

G-block houses the headquarters of several banks, including SBI, ICICI, Bank of India and Citibank. The US Consulate, the Dhirubhai Ambani School, the American International school are located here. The residential quarters for SBI, Nabard and ONGC are already occupied in this block.

Pankaj Kapoor, managing director Liases Foras, a real estate research agency, said builders are unwilling to buy land in BKC as the current land rate is unviable and properties are not selling. By increasing the FSI, the government, he said, wants to motivate builders to come and purchase land. The increased FSI increases the productivity of the land by increasing the saleable area. "As the government owns the land, it can hike the FSI to make it viable. This is not available to privately-owned land. But properties get benchmarked to the highest and lowest price. By increasing FSI and not moderating land price, the government is creating a speculative market," he said.

The MMRDA official said, "After office hours, the place is deserted. We wanted more life after office hours," he said.

The state's intent could transform the commercial hub into an affluent residential-cum-commercial pocket-borough that houses not just corporate houses and foreign missions but even homes of bankers, executives and diplomats. Developers said the government's push for residential buildings could alter the profile of the area, demographic and otherwise. Luxury residential towers are coming up on plots the MMRDA sold to developers about eight years ago, making them among the first to be used for residential purposes in the area.

Source - TOI

Why to invest in Mumbai's peripheral areas

There are many areas in the MMR and its periphery, which can be looked at as promising realty destinations. And the ongoing festive season could be the right time to make your investment.

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Mumbai's peripheral realty locations have always performed well, even at the time of the slowdown in the property market. During this festive season, peripheral locations are displaying immense promise, say experts.

Shailesh Puranik, MD, Puranik Builders Pvt. Ltd says, "Mumbai's peripheral locations have proven very attractive in the recent past as far as housing sales are concerned. Infrastructure development has played a major role in bringing these peripheral areas into focus. Mumbai has only limited land available for development unlike some other major cities of the country."

"Hence, real estate prices have skyrocketed in the recent years. Prices have soared so high that homebuyers in the middle and upper middleclass segments can't afford them. Affordable and quality lifestyle projects are currently only available at locations such as Thane, Virar, Kalyan-Dombivili, Badlapur and other such places. The development of infrastructure such as the Santacruz Chembur link project has reduced the travel time between Thane Mumbai to 25 minutes from the earlier 40-45 minutes," he adds.

Home-buyers find properties in the peripheral regions to be affordable; in addition, these areas also provide advantages such as a more peaceful environment as compared to Mumbai, less congestion and a great ambience.

Hence, a large number of home-buyers are flocking to these regions. To cater to this demand, property developers are coming up with innovative offerings and discounts to tap home-buyers during the festival period such as the upcoming Diwali.

Experts revealed that for the peripheral locations, builders have come with various strategies to attract prospective buyers. These strategies include attractive offers. People are already in a mood to buy property and such offerings make even peripheral properties an attractive option.

Source - TOI

Mumbai attracts 40% private equity investment in Indian real estate

Mumbai: The city attracted 40% of the $2.4 billion (around Rs 15,500 crore) private equity (PE) investments in the Indian real estate between January and September 2015. 

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Global real estate consultant Cushman & Wakefield, which released its report on Wednesday, said the total PE investment this year was the highest since 2008. The investments come when the office absorption across top eight cities is estimated at 158 million sq ft during 2015-19, it added. The PE investment this year is an increase of 84% over the corresponding period in 2014. 

The figures were released in the annual real estate investment publication, '`India Real Estate-Resurgence on the Anvil' in association with the Global Real Estate Institute. 

Delhi-NCR and Mumbai remained the top contributors in attracting PE investments this year. Mumbai attracted the highest PE investment volume with over Rs 7,000 crore, followed by Delhi-NCR, which garnered a 24% share. 

"The increase in momentum may be attributed to a few large deals in Mumbai and Delhi-NCR. With Indian banks shying away from lending to developers, developers are becoming more reasonable in pricing to attract investors,'' said the report. 

The residential sector attracted majority (77%) of the PE investment volume between January and September 2015. "This year appears to be heralding a revival of interests of private equity investors in real estate,'' said Sanjay Dutt, MD, India, Cushman & Wakefield. "There has also been a return of some blue chip investors who had withdrawn a few years ago, re-entering the Indian real estate market with direct investments. A number of Chinese investors have also been showing strong interest,'' he said. 

Robert Marten, MD, Global Real Estate Institute, said global investors were looking for four key pillars for investment, mainly market demand, governance, transparency and liquidity. "None of the rival real estate markets can boast as much progress as India,'' he said. 

The report said overall urban housing demand in India is expected to grow by nearly 15 million units by 2019-end. The top eight cities will contribute 3.4 million units to this overall demand. Within the top eight cities, the middle-income group will be the primary demand driver, accounting for 41% or 1.4 million units. "Demand is expected to outstrip supply by roughly 2.5 times. At least a quarter of this demand will be contributed by Delhi NCR,'' it said. 

In the commercial side, Thane-Belapur Road is expected to be the most sought after destination for back-office grade A office space. 

Source - TOI

Air India to Soon Sell Four Flats in Mumbai for Rs 90 Crore

New Delhi: Debt-laden Air India will soon sell four residential flats in Mumbai to public sector lender SBI for about Rs 90 crore as the airline looks to raise funds by sale of certain assets.

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The proposal, which has been in the works for some months, was recently approved by the Cabinet, sources said.

Air India would be selling four residential flats to SBI in Mumbai soon and the sale is expected to fetch around Rs 90 crore, they added.

These flats are the Sterling Apartments on the upmarket Peddar Road in South Mumbai. Earlier efforts to sell the four posh flats did not materialise.

Faced with substantial debt burden, the national carrier has been exploring various options to raise money to meet its funding requirements. These include proposed sale of properties and land parcels.

In August 2013, the national airline had floated bids for e-auctioning of these four flats. Each of these 3-BHK flats measures 2,033 sqft in carpet area.

The effort, part of its Rs 5,000 crore land monetisation programme, however, did not elicit good response.

Under the land monetisation plan, Air India expects to mop up Rs 5,000 crore over a 10-year period in its bid to bridge the widening mismatch in its revenue and expenditure.

Air India, whose debt burden is about Rs 40,000 crore, is surviving on a bailout package approved in 2012.

The erstwhile UPA dispensation had approved Air India's turnaround plan, with a committed public funding of Rs 30,231 crore, staggered over a period of nine years, with some specific riders.

Source - NDTV

Mumbai attracts 40% private equity investment in Indian real estate

Mumbai: The city attracted 40% of the $2.4 billion (around Rs 15,500 crore) private equity (PE) investments in the Indian real estate between January and September 2015. 

www.sevagiri.com

Global real estate consultant Cushman & Wakefield, which released its report on Wednesday, said the total PE investment this year was the highest since 2008. The investments come when the office absorption across top eight cities is estimated at 158 million sq ft during 2015-19, it added. The PE investment this year is an increase of 84% over the corresponding period in 2014. 

The figures were released in the annual real estate investment publication, '`India Real Estate-Resurgence on the Anvil' in association with the Global Real Estate Institute. 

Delhi-NCR and Mumbai remained the top contributors in attracting PE investments this year. Mumbai attracted the highest PE investment volume with over Rs 7,000 crore, followed by Delhi-NCR, which garnered a 24% share. 

"The increase in momentum may be attributed to a few large deals in Mumbai and Delhi-NCR. With Indian banks shying away from lending to developers, developers are becoming more reasonable in pricing to attract investors,'' said the report. 

The residential sector attracted majority (77%) of the PE investment volume between January and September 2015. "This year appears to be heralding a revival of interests of private equity investors in real estate,'' said Sanjay Dutt, MD, India, Cushman & Wakefield. "There has also been a return of some blue chip investors who had withdrawn a few years ago, re-entering the Indian real estate market with direct investments. A number of Chinese investors have also been showing strong interest,'' he said. 

Robert Marten, MD, Global Real Estate Institute, said global investors were looking for four key pillars for investment, mainly market demand, governance, transparency and liquidity. "None of the rival real estate markets can boast as much progress as India,'' he said. 

The report said overall urban housing demand in India is expected to grow by nearly 15 million units by 2019-end. The top eight cities will contribute 3.4 million units to this overall demand. Within the top eight cities, the middle-income group will be the primary demand driver, accounting for 41% or 1.4 million units. "Demand is expected to outstrip supply by roughly 2.5 times. At least a quarter of this demand will be contributed by Delhi NCR,'' it said. 

In the commercial side, Thane-Belapur Road is expected to be the most sought after destination for back-office grade A office space. 

Source - TOI

UAE developers to exhibit in Dubai Property Expo on 6th Nov’15

Mumbai : Dubai Property Show is going be held at Bombay Exhibition Centre, Goregaon East, Mumbai, from 6th-8th November this year, where over 35 UAE developers shall showcase budget homes to luxury apartments, beach properties, villas, furnished apartments and commercial properties at the event.

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There will be free interactive and educative seminars at the realty show to guide potential buyers on their investments. Around 5000 buyers are expected to visit the property exhibition. Falconcity of Wonders, Emaar Properties, Al Hamra Real Estate Development, Jumeirah Golf Estates, Tebyan, Select Group, Nakheel, Dubai Properties, Deyaar Development, MeydanSobha, Damac Properties, Dubai Sports City, Kleindienst Groupare are amongst the participating exhibitors in the property expo, according to an official release.

Ahmad Bin Harib Alfalahi, UAE Commercial & Trade Attaché to India (Minister Plenipotentiary), HE Sultan Butti Bin Merjen, Director General, Dubai Land Department, Government of Dubai, Sultan Al Suwaidi, Partner, Sumansa Exhibitions LLC, organizers of Dubai Property Show in Mumbai, Yousuf Kazim, CEO, Barry Ebrahimy, Head of Commercial, Al Hamra Real Estate Development, Jumeirah Golf Estates, Al Harith Al Moosa, Vice Chairman and Deputy General Manager, Falconcity of Wonders would witness the opening ceremony. Malaika Arora Khan, Bollywood Actor and Style Icon will be the celebrity guest.

It is to be mentioned here that, Indians are top investors in Dubai realty, most prolific foreign investors in H1, with a total of 3,017 transactions worth more than USD 2 billion.

 

Source - Gharabari.com

Canada Pension Fund Ready to Invest $2 Bn in Mumbai Housing: Maharashtra Chief Minister

Mumbai: Canada's pension fund is ready to invest $2 billion (Rs 13,000 crore at $1 = Rs 65) in affordable housing in Mumbai, Maharashtra Chief Minister Devendra Fadnavis said, in a move that would boost Prime Minister Narendra Modi's goal of providing cheap housing to millions of people.

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"A week back, the Canadian ambassador... informed me that the Canadian pension fund is ready to invest $2 billion in Mumbai for affordable housing," Mr Fadnavis told reporters.

The Canada Pension Plan Investment Board (CPPIB) opened an office in Mumbai this month and has already committed to invest more than $2 billion in India.

Source - NDTV

Oberoi Realty Launches 25 Acre Mumbai Residential Project

Oberoi Realty has launched a 25-acre residential project in Mumbai's Borivali called 'Sky City'.

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"Sky City will consist of multiple towers of up to 60 storeys each. The company plans to launch the first phase of this development consisting of three towers," Oberoi Realty said.

The apartments at Sky City will comprise predominantly of expansive three bedrooms in various configurations, with carpet areas starting from 1029 sq. ft. onwards, Oberoi Realty added.

"The project is strategically located off the Western Express Highway offering excellent connectivity to business districts and leisure options like malls, hotels, theatres and parks.

"Based on the design concept of multi- terraced gardens, the development will boast of wide - open recreational areas and lush green landscapes," Oberoi Realty said.

The amenities at 'Sky City' will include multiple swimming pools, an aqua gym, tennis court, badminton court, squash court, rock climbing, landscaped gardens, gymnasium, jogging track, children's play area, skating rink, Oberoi Realty said.

At 12:37 pm, the Oberoi Realty stock was trading 2.57 per cent higher at Rs 275.20, outperforming the broader indices.

Source - NDTV Profit

Mumbai plans to build multi storey towers with shipping containers in Dharavi

Imagine this: bang in the middle of one of India's largest slums, Dharavi, a skyscraper rises. It's no ordinary high-rise made of bricks and cement. This 400-meter tall tower will be constructed with 2,500 brightly coloured shipping containers stacked one upon the other. No, this is not the overwrought imagination of a Bollywood movie director but the brainwave of Shenzhen-based architecture firm CRG Architects. The idea, which bagged the third prize in a competition organised by skyscrapers.com — a global platform for new skyscraper architectural projects — has raised the eyebrows of architects and activists in Mumbai. 

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"The main structure supporting the stacking of containers is made of concrete slabs and columns, every 8 or 9 levels, due to that the containers can be stacked at this number," says Carlos Gomez, founder and principal at CRG Architects, who estimates that the proposed scheme could house up to 5,000 people. "Mumbai being a port city, the durability of a shipping container skyscraper using the proper materials can be long lasting," adds Gomez.

According to the architecture firm, three containers can be joined to create a three-bedroom family apartment, whereas a single unit could be subdivided to provide a studio flat. The core of the tower is made of vertically stacked containers which can house an elevator. Also, empty containers can be used for gardens, schools, mini markets and entertainment areas. "It could be 1/3 part cheaper than a normal construction with the same height," says Gomez. So far, the project is still a conceptual one and Indian companies are yet to show interest in it.

The idea of re-using shipping containers isn't new and has been tried in the East Coast of the United States and parts of Western Europe, says Samarth Das, an urban designer and architect with PK Das & Associates.

"There is an inherent conflict in using steel and metal containers when it comes to habitable spaces... CRG team's overall efficiency of the ventilation systems is not convincing, especially since we struggle with these issues even within well-ventilated homes made of brick and concrete," says Das.

However, Das concedes that the basic idea of recycling shipping containers and re-introducing them into the usage cycle is smart, considering the fact that Mumbai has gradually been severing its connections with container goods transport. 

Jockin Arputham, president of Slumdwellers International and former Nobel Prize nominee, claims it's common for western architects to propose such seemingly economical architectural ideas that aren't feasible in Dharavi. "Such ideas were proposed 15-18 years ago. They (westerners) have no idea about Indian living conditions. There are 400,000 people, approximately 90,000 families living in Dharavi," says Jockin. "Not a single transit camp has come up in this format and it never will work." At present, slumdwellers enjoy a host of benefits such as flexible live-work areas, community spaces and shared utilities, argues Arputham. 

Source - ET

Mumbai 2nd in top global rentals list

A Knight Frank Global Cities report placed Mumbai at second spot among top 20 global cities, which offers the highest rental yields for office space. The city currently offers a 10% return annually on office space rent, said the survey released on October 15.

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Mumbai is ranked number two among 20 global cities for the highest office rental growth. "Knight Frank forecasts that Madrid will top rental growth at 22.2% by 2018, followed closely by Mumbai (21.3%) and San Francisco (20.2%),'' it said.

Bengaluru is on the top of the list while Delhi is ranked third on top global cities in office rental yields. An office space in Bengaluru fetches an annual 10.50% return to the owner while in Delhi the yearly return is 9.50%.

In comparison, London and New York that offer rental yields at 4%. As much as 67% of total investment in India's real estate, mainly driven by commercial market, is from overseas investors, it said.

Current office rentals in Mumbai and Delhi are lower than the 2007 peak levels by 17% and 19% respectively; Bengaluru holds forte with an 8 percent growth.

While London and San Francisco witnessed the highest rental growth for high-rise offices (skyscrapers), Mumbai has also shown a healthy traction in high-rise rentals.

Said Shishir Baijal, Chairman & MD, Knight Frank India, "Indian office market has has clocked office space transactions of 18 million sq ft in the first six months of 2015. We expect the year to complete at around 40 million sq ft which is the highest since 2011."

Bengaluru itself is expected to transact office space to the tune of around 12 million sq ft this year. "Even though at an aggregate level, the vacancy is at 17 % the challenge is to get good quality office spaces across prime business districts, wherein vacancy is in single digits. Due to a robust demand from start-ups and e-commerce, other than IT/ITeS, BFSI and manufacturing, office rentals are experiencing a substantial surge,'' said Baijal.

Samantak Das, Chief Economist & National Director of Research, Knight Frank India said, "While Bengaluru, Mumbai and Delhi are offering the highest yields globally of 9-11% , we see a lot of interest from investors in the last one year, which was preceded by a period of prolonged slowdown. Office markets across the top cities of India are continuing with its turnaround trend observed in 2014. This is backed by robust economic growth and focus on infrastructure and ease of doing business.''

Source - TOI

Mumbai plans to build multi storey towers with shipping containers in Dharavi

Imagine this: bang in the middle of one of India's largest slums, Dharavi, a skyscraper rises. It's no ordinary high-rise made of bricks and cement. This 400-meter tall tower will be constructed with 2,500 brightly coloured shipping containers stacked one upon the other. No, this is not the overwrought imagination of a Bollywood movie director but the brainwave of Shenzhen-based architecture firm CRG Architects. The idea, which bagged the third prize in a competition organised by skyscrapers.com — a global platform for new skyscraper architectural projects — has raised the eyebrows of architects and activists in Mumbai. 

www.sevagiri.com

"The main structure supporting the stacking of containers is made of concrete slabs and columns, every 8 or 9 levels, due to that the containers can be stacked at this number," says Carlos Gomez, founder and principal at CRG Architects, who estimates that the proposed scheme could house up to 5,000 people. "Mumbai being a port city, the durability of a shipping container skyscraper using the proper materials can be long lasting," adds Gomez.

According to the architecture firm, three containers can be joined to create a three-bedroom family apartment, whereas a single unit could be subdivided to provide a studio flat. The core of the tower is made of vertically stacked containers which can house an elevator. Also, empty containers can be used for gardens, schools, mini markets and entertainment areas. "It could be 1/3 part cheaper than a normal construction with the same height," says Gomez. So far, the project is still a conceptual one and Indian companies are yet to show interest in it.

The idea of re-using shipping containers isn't new and has been tried in the East Coast of the United States and parts of Western Europe, says Samarth Das, an urban designer and architect with PK Das & Associates.

"There is an inherent conflict in using steel and metal containers when it comes to habitable spaces... CRG team's overall efficiency of the ventilation systems is not convincing, especially since we struggle with these issues even within well-ventilated homes made of brick and concrete," says Das.

However, Das concedes that the basic idea of recycling shipping containers and re-introducing them into the usage cycle is smart, considering the fact that Mumbai has gradually been severing its connections with container goods transport. 

Jockin Arputham, president of Slumdwellers International and former Nobel Prize nominee, claims it's common for western architects to propose such seemingly economical architectural ideas that aren't feasible in Dharavi. "Such ideas were proposed 15-18 years ago. They (westerners) have no idea about Indian living conditions. There are 400,000 people, approximately 90,000 families living in Dharavi," says Jockin. "Not a single transit camp has come up in this format and it never will work." At present, slumdwellers enjoy a host of benefits such as flexible live-work areas, community spaces and shared utilities, argues Arputham. 

Source - ET

In crowded Mumbai, open space gets huge premium

Realty developers maximize their plots development potential through various Floor Space Index incentive schemes in space-starved Mumbai. But only few understand that projects built on base FSI, which essentially lead to more open space and also strike a chord with consumers, are commanding 50-100 percent premium over the existing average price points in these localities.

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For Instance, current prices at BeauMonde Towers, built nearly a decade ago, in Prabhadevi, are around Rs 90,000 per sq ft, up more than 100 percent over the average rate in the locality. Prices at Parel's Ashoka Towers and Lower Parel's Ashford Casa Grande are 50-60 percent higher than current rates in these micro markets, showed data from research firm PropEquity. FSI refers to the permissible development potential on a plot of land. 

"The reason for such premium is quite simple. Mumbai has just 2.5 percent of area as public open spaces and amounts to only 1.95 sq meter per capital, much lower than global standards, and lower than even Delhi and Bangalore," said Ashutosh Limaye, Head - Research and Real Estate Intelligence Service, JLL India. The premium being paid clearly shows home buyer’s preference for a low density project offering exclusivity in the crowded Maximum City. And developers who are paying heed to this fact are receiving better response to their offerings.

"Higher FSI usage would compromise the project's exclusivity making it a very high-density development. Projects with 1.33 FSI would now be rare and heritage, therefore commanding much better preference by the customers. In a city like Mumbai, luxury in the true sense is open space,'" said Navin Makhija, MD, Wadhwa Group.

It is developing residential project W54 spread over two acres in Matunga with base FSI of 1.33. According to Makhija, the company has already sold over 60 percent of the apartments at W54, mainly because of 85 percent area being dedicated to recreational space.

Developers are also using base FSI to avoid any uncertainty that may occur due to policy decisions by authorities as experienced earlier in case of parking FSI scheme.

"From experience, I believe that incentive FSI schemes in Mumbai have, in the recent past, added undue risk on projects that have ultimately led to severe delays and uncertainty. Also, these incentive schemes would lead to multiple users that have competing requirements and dilute the project's exclusivity. For example, a single plot may have to accommodate high-end residences and public parking or slum rehabilitation/low income housing," said Adarsh Jatia, MD, Provenance Land, owner of Mumbai's Four Seasons Hotel.

Provenance is also using base FSI to develop Four Seasons branded private residences in Worli and the project on 1.5 acre will have only 26 residences in a 55-story tower.

Another developer Indiabulls Real Estate has also opted for base FSI for it’s over 10.5-acre project Indiabulls Blu at Worli for the same reasons, as it offers five acres of open space. According to a company's spokesperson, the project has the lowest density of 33 per acre.

In Delhi too, this holds true as projects with low density are fetching a premium.

"When I bought my apartment in the under-construction DLF Magnolia project in 2009, open space and low density were key reasons behind it. Apartments here are more than twice the money you pay for projects in the vicinity," said Sameer Jasuja, CEO, PropEquity, while highlighting large apartments in Magnolia are priced about Rs 16-17 crore against Rs 6-7 crore for similar flats in the locality.

There are many advantages for customers preferring a development with 1.33 FSI instead of 4 FSI, like open spaces, better planning, better socio class neighbours, exclusivity, privacy, low maintenance cost, fast elevators, etc.

Source - TOI

Real Estate Dialogues: Gear up for Mumbai event

Magicbricks, India’s leading property portal is conducting a series of Real Estate Dialogues (REDs) across India. RED is a platform which brings together key stakeholders in the real estate sector to discuss issues pertinent to the industry.

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 The objective is to take a 360 degree look at these issues by incorporating the view-poinThe present edition of RED focuses on the most important issue affecting the Indian real estate market – what measures are required to bring the consumer back into the market?

After the first event in Hyderabad on October 1, 2015, the upcoming second event will take place in Mumbai on October 7, 2015. The board room discussion will focus on- Triggering a Buy – Building Consumer Confidence.

During the panel discussion various topics will be addressed by our experts. The panelists for the Mumbai boardroom discussion are Hitesh S Jain, Director, Metro Group; Diipesh Bhagtani, Director, Jaycee Group; Sudeep Saha, Director of Avant Group; Mr Karan Gulati of Satyam Group; Santosh Naik, MD & CEO, Disha Direct Marketing Services Pvt. Ltd; Ramesh Nair - Chief Operating Officer - Business & International Director, JLL India; Gulam Zia, Executive Director – Knight Frank India; Sudhir Nair, Director - CRISIL Real Estate Ratings; Satish Ramchandani-Director, CRISIL Real Estate Ratings; Sunil Hazare - Assistant Director, Town Planning, Navi Mumbai Municipal Corporation & Mr. Pradeep Gohil, Assistant Director, Town Planning, Thane Municipal Corporation.

Below mentioned are the topics that will be addressed by our guest panelist in this event:

• What is the current status of residential real estate market in the city in terms of sales velocity, new launches and existing inventory level?
• What are the five (05) leading factors which are negatively impacting the consumer confidence and keeping him away from the making a home purchase?
• What roles can the three major stakeholders i.e. developers, banks and state governments can play in alleviating the concerns of a consumer?
• Is home loan interest rate the silver bullet which can break this logjam? What are other short term and long term measures required to revive consumer confidence?
• What is the market outlook in medium to long term?

Magicbricks has created this platform so that the stakeholders such as builders, banks and government to raise consumer confidence and translate the same into transaction activity. The insights that will be gained from these interactions will be built into a recommendation which will be shared with relevant decision makers of the real estate industry.ts of the stakeholders and build a holistic picture.

Source - ET 

Mumbai Metro: The new realty magnet

Industry experts believe that there is an enormous scope for real estate development in areas surrounding the Mumbai Metro line.

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Infrastructure development acts as a catalyst for growth of the residential and commercial property segments and in this context, the Phase -1 of the Mumbai Metro has played a pivotal role.

Taking this forward, Maharashtra chief minister and chairman, MMRDA, Devendra Fadnavis has sanctioned the expenditure of Rs 35,400 crores for the development of 118-kms Metro network.

It includes 40-kms Dahisar-CharkopBandra-Mankhurd Metro-2 corridor (Rs 12,000 crores); 40-kms WadalaGhatkopar-Thane-Kasarvadavali Metro-4 corridor via Wadala GPO and R.A.Kidwai Marg (Rs 12,000 crores); 27-kms Dahisar-E-AndheriE-Bandra-E Metro-5 corridor (Rs 8,100 crores) and 11-kms Jogeshwari-Vikhroli Link Road Metro-6 corridor (Rs 3,300 crores).

The Metro project will attract people in its vicinity as it helps in better connectivity to other parts of the city. Hence, industry experts believe that there is an enormous scope for real estate development in and around the metro.

Additionally, property prices in the area are expected to rise significantly once the project gets underway. Ramesh Nair, COO business and international director, JLL India, points that the areas which will benefit from the Metro connectivity have already seen a price rise of 400 percent over the last eight years and this trend is set to continue with this imminent launch.

Phase 1 of the Mumbai Metro has resulted in a marked improvement in the realty development along the metro route and areas close to metro stations. It has helped in better east-west connectivity within the city and helped in saving precious time commuting between work and home."The metro phase 1 project was a blessing for most people travelling from eastern to the western suburbs and vice-versa, as there was no direct link earlier between these areas. The metro phase 1 project has helped in taking the load off the existing road and rail infrastructure and has received a very good response from commuters utilising the services at optimal levels. This decongestion has attracted buyers who were earlier hesitant to buy residential or commercial spaces earlier. Places like Chandivali and Sakinaka in Andheri (east) are easily accessible after Phase 1 of the metro came up and demand is taking an upward trend," says Manju Yagnik, vice-chairperson, Nahar Group.

The infrastructural initiatives have always contributed to the real estate boom in the city. Nishant Agarwal, managing director, Avighna, believes that the future infrastructure plans for Mumbai will also continue to fuel growth in this sector.

"The proposed Underground Metro line connecting Dahisar to Mankhurd will further strengthen the resolve of real estate developers to venture into these areas with housing and commercial projects," he says.

Source - Property Times

2/3 of Mumbai's housing stock priced over Rs 1 cr

More than two-third of the unsold housing inventory in Mumbai is priced above Rs 1 crore, well beyond the reach of most of the city's prospective home buyers. 

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Currently, there are about 33,500 residential apartments in this category out of a total 44,032 units. About 83 percent of the housing units launched in the second quarter ended June fall in this price range, showed a JLL India study covering projects within Mumbai's municipal limits. 

Although the proportion has come down from 90 percent at the end of April due to some new launches in suburban locations, it is still overwhelmingly high for a city where only a limited percentage of residents can afford ticket sizes of over Rs 1 crore.

"The need of the hour is to reduce the size of apartments and undertake value engineering of construction cost to ensure more home buyers can afford houses in Mumbai," said Ramesh Nair, COO & International Director, JLL India. 

Over the past few years, developers have been steadily reducing the average unit sizes to suit the budget of a majority of home buyers in the city. The reduction in average unit sizes has been the highest in Mumbai at 26.4 percent in the past five years. The average unit sizes in Mumbai have been the lowest among Indian cities. 

Apart from reducing apartment configurations, developers are also tweaking their strategies to cater to the large segment of consumers. 

"We all know that below Rs 1 crore is where majority of the demand is and would like to capture this attractive segment. But how many of us can do it within city limits, given the current land prices and development premiums that need to be paid upfront? That is why developers are also looking at places beyond Thane and Navi Mumbai where they can offer apartments in the affordable category," said Sunny Bijlani, director, Supreme Universal.



Development charges and premiums to be paid to the civic authorities form 30-35 percent of the project cost and these premiums have increased over 300 percent in the past three years, he said, adding that Supreme Universal is also in talks for land parcels in Badlapur and Ambarnath for affordable housing ventures.

With land prices and development premiums that continue to move higher, proportion of houses priced above this price range are expected to go up marginally in the near term launches. However, experts are of view that even the government needs to review the scenario and consider measures to ease the pressure.

According to Nair, apart from reducing taxes, government needs to improve infrastructure and connectivity. Also creating more growth corridors with economic activity will encourage, and not force, people to reside in suburban locations too. Moreover, during the launches in the second quarter, only 3.21 percent of the apartments under Rs 31-65-lakh bracket are in the size and none under the Rs 30-lakh bracket in Mumbai.

Pitted against pan-India figures, the numbers are highly skewed towards the higher ticket sizes in Mumbai. Very few units in the affordable range were available from all these launches and mostly were in the suburban locations. Even if one looks at the overall inventory, there is very little stock Rs 65 lakh in the affordable range of and below in Mumbai's municipal limits. 

ET View 

Mumbai needs inclusionary housing. We need a strong foundation of proactive policy to boost housing stock. For affordable housing, we need to do away with the most pernicious provisions in the Rent Control Act, which discourage renting out of dwelling units. The floor space Index needs to be done away with and we should instead seek to augment supportive infrastructure. We also need inclusionary public housing in Mumbai. Further, a trans-harbour link would open up vast tracks of land for housing. The Bandra-Worli Sealink has meant access to no new land. 

Source - ET

10 reasons to invest in Mumbai market now!

Despite being the costliest real estate market of the country, Mumbai’s realty holds a special place for people in the city.  Aanchal Mehra, a software engineer in Mumbai, earns over Rs 15 lakh per annum.

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Mehra is confused whether she should invest in realty or stock market to park the extra money she has accumulated over the years. Looking at the sluggish market, she isn’t sure of either - as the stock market is unstable and the realty sector is slow.

Like Mehra if you are a tad bit confused, we bring you the top reasons why investing in Mumbai realty is a wiser option.

Surplus options to choose from

As per Magicbricks data, currently there are over 1 lakh property options available in Mumbai and nearby region. Majority of them are in Mumbai and Greater Mumbai while Navi Mumbai and Thane also has over 40,000 options to choose from. 

Good deals

Due to piling unsold inventory, builders are going the extra mile to lure buyers. This includes free furnishing, free car parking, bulk discounts up to Rs 5 lakh, among others. However, a buyer needs to be really smart before choosing the deal. Check out the best deals available in Mumbai

Tip:  Opt for a deal which can bring down the overall cost of buying home. For e.g. deals which waive off service tax and VAT or offer free car parking or free modular kitchen.

Builders open for negotiations

Local developers who are facing difficulty to clear off their shelves are open to negotiations. Our market sources informed that bargaining can fetch you up to 12 per cent discount in suburban areas while projects along the Eastern Express Highway are available at pre-launch prices.

Prices are still rising!

Recently launched PropIndex (Apr-Jun 2015), an India Apartment Index, indicates that over 60 per cent localities in Mumbai has witnessed price rise. Majority of these localities are along the Western Express Highway. The listed price monitor also saw an increase of 2 per cent, which indicates prices are moving, slowly but definitely.

Buying is always more profitable than renting

In a city like Mumbai where the average cost of buying home is over a crore, the initial down payment involved makes buyers opt for rented accommodation. However, with subvention schemes available, you can opt for customised payment plan which are construction linked and involves minimum down payment. 

Hence, check out Buy Vs Rent Calculator (http://advice.magicbricks.com/buy-rent-calculator-financial-advice), before you move decide to buy or rent a home 

Considerable Rental Yield

If you are considering property investment to earn extra income, here are the top localities where you can reap maximum benefits:

Potential to grow

Owing to a slew of proposed infrastructures such as Coastal Roads (a road connecting Malad to Nariman Point), Navi Mumbai International Airport, Nhava-Sewa Link Road, Metro Expansion, property pundits are expecting localities in proximity to such developments to be impacted. The classic case of such impact is Ghatkopar West, where property prices doubled as metro construction work gained speed.

Easy financing

Not just builders, even banks are excited to cater to home buyers needs. The interest cut by Reserve Bank of India is fueling buyers’ anticipation of cheaper home loans. Other than this, developers are tying up with banks and seeking approval tag which further boosts the credibility factor in buyers’ eyes.

Property is a tangible investment, it will exist forever

Unlike stocks and mutual fund, property is a tangible investment which will exist forever. Moreover owning a property is a morale booster for a buyer as real estate is always a profitable asset which never loses its value.  

It’s always a status symbol to afford a home here!

Mumbai is a home to maximum number of millionaires. So owning a house here is definitely a status symbol. For people like Mehra, who already has sufficient money to spend, this might be the time to invest in the most expensive real estate market of India. After all, there is no right ‘right time’ to buy property.

Source - ET