Monday 7 March 2022

Mumbai property market on record-setting spree, February scales over 10,000 registrations

 March 2022

Mumbai

Property registrations in Mumbai, the country’s biggest real estate market, have continued to reflect robust momentum in February, surpassing the pre-pandemic levels witnessed two years ago by a wide margin.

This is also the first time since the stamp duty reduction benefit came to an end last year, the city has seen monthly registration of over 10,000 apartments. In terms of revenue to the state exchequer, the month has recorded the best February ever with over Rs 561 crore stamp duty collection.

The country’s commercial capital witnessed registration of over 10,026 residential deals in February, showing data from the Inspector General of Registration, Maharashtra. This registration number is up 23% from January, which itself was a 10-year record.

February 2020, the month just prior to the outbreak of the Covid19 pandemic in India, had witnessed registration of 5,927 residential deals and the performance recorded this month has surpassed this pre-covid level by over 70%.

“Mumbai, apart from being the country’s largest realty market, is now also one of the strongest growth markets. A slew of measures like the progressive budget, availability of the lowest home loans rates and a good homebuying environment is driving this growth. We expect this uptrend to continue in the months to come and hope that the government remains supportive,” said Boman Irani, President of realtors’ body CREDAI-MCHI.

Record-low interest rates, incentives, and stable pricing have been prompting a robust response from homebuyers for nearly 6 quarters and now the fear of a price hike due to cost-push or an upward revision in government rates is also pushing the sales velocity.

“We are seeing good traction in sales activity across categories and micro-markets, robust conversion of inquiries into deals. It is an indication of positive sentiment combined with low interest rates and stable pricing that is translating into business momentum. With all positive factors in place, most homebuyers have realised this is the best time to buy,” Vikas Chaturverdi, CEO, Xanadu Group that handles sales and marketing of several developers across their portfolios. “Both western and central suburbs of Mumbai are leading the sales activity.”

According to Irani, the Mumbai Metropolitan Region (MMR) posting sustainable growth for the last several months is extremely encouraging news for over 250 ancillary industries and job creation in general.

With the central bank maintaining its stance on low policy interest rates, and developers providing attractive offers, sales trajectory has been on the rise with monthly sales surpassing even pre-pandemic levels seen in 2018 and 2019.

The Mumbai property market has been buzzing with activity since the state government announced a reduction in stamp duty rates in 2020 to kickstart the realty sector and other industries linked with it.

The reduced stamp duty had led to a surge in the number of transactions across segments including luxury, mid-income and affordable housing. While the lower stamp duty benefit window period ended in 2020, the property markets across key cities of Maharashtra are still witnessing robust activity.

Kailash Babar, ET Bureau



Source - content.magicbricks.com


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Wednesday 2 March 2022

Maharashtra Government Increases FSI for Slum-rehab Projects Across State

 Mumbai


The Maharashtra government has increased the Floor Space Index (FSI), or the permissible development on a plot, to four times from three across the state for slum-rehabilitation projects, in line with existing guidelines for the country’s commercial capital, Mumbai.

The state government has revised the Unified Development Control Promotion Regulations (UDCPR) for the rest of the state to give effect to this increase in the FSI.

"In late 2019, the FSI for slum-rehabilitation projects in Mumbai was increased to four times from the earlier three, and now, after over two years, the same has been made applicable to other parts of Maharashtra," said a senior state government official.

The move is expected to push projects involving slum rehabilitation in other parts of the state apart from Mumbai.

"With growing industrialisation and a population explosion, slums will continue to increase in volume and cause larger issues. The Maharashtra government has rightly identified this and its penetration beyond metro cities like Mumbai. The FSI policy to incentivise developers in other cities to come forward and take up slum redevelopment is a step in the right direction. This will be a big leap forward in housing for all and slum-free cities in Maharashtra," said Gautam Thacker, President of real estate industry body Naredco’s Progressive Neral-Karjat unit.

According to Thacker, when combined with city beautification and pride in one's place of residence, it would encourage more developers to come forward and undertake such development, as well as be a positive step toward a cleaner and safer city or town.

In a bid to strengthen and bring uniformity to real estate construction guidelines across the state, the government approved the UDCPR in December 2020. This uniform set of regulations will specify everything from the height of buildings to the width of roads and the size of amenity spaces.

The new rules are applicable to all municipal corporations, councils and nagar panchayats across the state, except Mumbai and some neighbouring areas like hill stations, eco-sensitive zones and specified corporation areas.

As per the UDPCR issued in December 2020, the density for slum rehabilitation projects to receive the FSI of three was set at 500 dwellings per 2.5 acres. This permissible density has now been increased to 650 dwellings per 2.5 acres, while increasing the FSI to four times from three.

Slum-rehabilitation authorities will have the flexibility to consider projects with an even lower density of 500 dwellings per 2.5 acres, to ensure more rehabilitation projects are undertaken and slum dwellers are accommodated in such developments.

For effective implementation of the projects, a separate authority is likely to be set up for eight metropolitan municipalities including Thane, Kalyan, Panvel, Vasai-Virar and Bhiwandi-Nizampur. Seven municipalities and councils, including Badlapur, Ambernath Alibag, Pen, Khopoli, Matheran and Karjat will also be made part of this separate authority.



Source - content.magicbricks.com


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