Delay in Chennai project delivery

The builder in Chennai  issued a receipt allotting them a flat.DLF, however, was unable to start construction for one-and-a-half years. it sent them a buyers agreement mentioning the apartment, floor and building number along with details of apartment area and price per sqft.

Mumbai's reckoner rates hiked by an 5%

Are You Planning to buy property in mumbai ?The country's most expensive property market is going to be more costelier state government has hiked ready reckoner rates by an average of 5% for various localities in the city and also  Mumbai's civic authority proposed a 1% additional surcharge on all property transactions in the city.

The Trends by Volume’s Concerning Real Estate in Mumbai

Real Estate Mumbai

Regarding real estate in Mumbai, it seems that the cities builder’s expectation from the cities real estate market are boundless. In February of this year builders in Mumbai unveiled plans to build two thousand new units in the city. This makes sense since the sales volume of real estate in Mumbai has been on the ascent and builders most likely hope to sell new units quickly once the units have been completed.

Consider an example of rising real estate sales volumes in Mumbai, wherein during February of this year, the number of houses sold was thirty-three percent greater than the number sold in February of last year. Annually the price of property in Mumbai has risen by one percent however prices fell month on month by one percent over the past two months.

The Star Attractions by Volume in Mumbai

In February of this year, localities on the outskirts of Mumbai were bought and sold in greater volumes than were properties in other regions of Mumbai. In increasing order, the regions of Mumbai’s namely Karjat, Ulwe, Neral, Dombivalli, and Thane West contributed the most to the sale of housing in Mumbai in February of this year.

Table of Content

PMAY Scheme to buy property in mumbai

Four Regions That Offer Middle-Income Buyers Affordable Property in Mumbai

Prices of the small homes to reduce in Mumbai

Crunching the Numbers      

The property markets mentioned above stack up differently from one another, for instance, the rate for property in Thane West is as high as 11,500 rupees per square foot whereas at Neral the property rate is as low as 3,000 rupees per square foot. Within the locality of Dombivalli property rates vary from a low of 5,350 rupees per square foot and a high of 10,250 rupees per square foot. However, to transact a property in Mumbai that is located in Ulwe, a buyer or seller can safely assume to pay or receive a sum proportionate to 6,200 rupees for each square foot. Last but not least is the locality of Karjat where on the average property can be bought and sold for as little as 3,500 rupees per square foot.   

Conclusion

Residentialprojects in Mumbai on the outer regions are bought and sold in greater volumes than are properties in the more central regions of Mumbai. The low cost of units housed in projects in Mumbai’s outskirts is one likely reason why such properties are bought and sold in greater volumes than are properties in the interior of the city.

Affordable Housing in Mumbai

Residential Property in Mumbai

According to the PMAY, affordable housing in Mumbai will be within the purchasing power of the Economically Weaker Section and Lower Income Groups who reside in informal housing in India’s urban centres. It may be possible that affordable housing in smaller urban cities luckily falls within the budget of a certain segment of the homebuyer, however affordable housing in Mumbai even if it is built, will certainly not fall anywhere near the purchasing ability of EWS and LIG’s. 

Mumbai Development Plan tabled in BMC

Mumbai Property

The latest development plan for the city--Development Plan 2034--has cleared another hurdle. Recommendations like changing the controversial `affordable housing' term to `social housing' have made it to the report, which may be tabled before mayor Snehal Ambekar on Monday. A final nod will be given by the 227 newly-elected corporators after the mayor's election on March 8.

It's a best time to buy Property in Mumbai.

Projects in Mumbai

The tallest projects in Mumbai are well over two hundred meters tall. While the number of such projects is small, they are a quantum leap from where high rises were thirty years ago. Indian builders are able to build projects in Mumbai that rival projects that had been built in the US fifty years ago. If competing with a city as it was fifty years ago seems unremarkable, consider that fifty years ago everyone in the US enjoyed a higher standard of living than most Indians do today.  

PMAY Scheme to buy property in mumbai

Residential  Property Mumbai

In Mumbai, the SRA scheme has been able to house merely 1 lakh slum dwellers in 15 years as against the target of 8 lakh in five years with only slums in prime pockets being taken up by private developers who capitalised on a majority of the freed land and it will also to buy a property in mumbai

Four Regions That Offer Middle-Income Buyers Affordable Property in Mumbai

Private equity investors and overseas developers are looking to invest in various development projects

Propchill ventures into providing an investor with tools to generate comparative analysis across various verticals like location, specifications, conveniences, costs or the most important accommodation design also you can view detailed Real Estate trends and Property insights, with Liveability Index before any real estate or property investment.

Four Regions That Offer Middle-Income Buyers Affordable Property in Mumbai

Middle-class households that are seeking a property in Mumbai need not lose heart. Despite the city’s reputation as among the most expensive in the world, opportunities for homeownership are present for middle-income households within Mumbai. Mumbai, the city, with a population of more than 2 crores offers opportunities for homeownership to many who fall in the middle-income segment. It’s not uncommon today to find flatsfor sale in Mumbai that are priced between 20 to 75 lakhs.

Opportunities in regions such as Mira Road, Virar, Kandivali East, and Nallasopara are plentiful for middle-income group households in Mumbai who are eager to purchase a house in the city. Let’s see one by one what each of these localities have to offer buyers. 

Well Connected Mira Road

Mira road is well connected to localities such as Thane and Navi Mumbai via the Western Express Highway, Mumbai Suburban Railway, and Ghodhbunder Road. The connectivity that Mira Road enjoys with the mentioned regions has been driving demand for housing here. Prices here average nearly 7,000 rupees per square foot and end-users, as well as investors, eagerly buy property here.

Up and Coming Virar

Virar is well known as an up and coming region that offers affordable properties in Mumbai matching the requirements of middle-income households. There is an upcoming metro link in Virar and the region also has an up to date social fabric. Because Virar has water catchment provisions there is no shortage of water in Virar. At 4,500 rupees per square foot prices here are lower than they are at Mira Road.

Kandivali East Gaining Ground

The price of property at Kandivali East is nearly thirty percent lower than that in Goregaon and Malad. Additionally, Kandivali East and Malad are between 4 to 8 kilometres from Goregaon and Malad and hence the aura of exclusivity of the two regions spills over to some extent to Kandivali East. Property rates in Mumbai at Kandivali are approximately 13,000 rupees per square foot, hence for 75 lakhs, an MIG family may find a small house in Kandivali East.

Truly Affordable Nallasopara

Western Nallasopara is better built with regards to infrastructure than is the eastern region of Nallasopara. Nallasopara wins with respect to providing affordable housing to those eagerly looking for such property in Mumbai since properties here are available at a rate of 4,200 rupees per square foot.

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Prices of the small homes to reduce in Mumbai

 The Budget 2017, which has brought the revised tax incentives, will provide a thrust to the cheap housing market, especially the small homes. This will lead to a surge in supply of affordable real estate in Mumbai. The increase in the number of housing units will impact the prices of property in Mumbai and will boost the sentiments the sentiments of the real estate market.

The Union Budget 2017 has been a game changer for the housing sector which was reeling under severe downfall due to the demonetization policy. The Government has extended the tax exemption period for constructing homes for 3 or five years. This has provided a major boost to the affordable housing segment. In addition, to this, the budget has also eased the regulations by offering 100% exemption on the profits made on the sales of the flats with carpet area of 30 sq mts in metro cities  and 60 sq mt in  non-metro cities. This declaration has generated a wave of positive sentiments among builders and home buyers. The Mumbai real estate has been struggling for a long time but this announcement in the budget has been relieving factor. 

The prices of the 1BHK units will be impacted majorly by this announcement. Let us find out more about the falling prices of the 1 BHK units-
1 BHK units

The flats of the carpet areas of 30 sq m in merto cities are usually in 1 BHK units, which are popularly known as the compact or nano homes. In the recent years, there has been a rapid increase in the demnad of these units. There are many working professionals and first home buyers who are attracted to this format builders in mumbai . On the contatry, the builders have been refraining from developing these compact housing units owing to high input costs and lower returns.

With the latest announcement in Budget about the tax exemption more and more developers are excepted to initiate more such projects. This will generate a lot of supply of homes in this segement and subsequently will lower the prices of the affordable houses. The prices of the property of carpet area 300 sq m will fall by Rs. 3 lakhs , which would be very significant for the buyers in this segement. This means that the average ticket size in this segement will be between Rs.20-25 lakhs.The areas like Panvel, Kalyan, and Thane will certainly witness a steeper dip in the prices. 
So, go ahead and explore these areas!


Tips to Follow before buying home in mumbai

Save now on buying home under Pradhan Mantri Awas Yojana from propchill03

Private equity investors and overseas developers are looking to invest in various development projects

Increased infrastructure spending gives a thrust to the  Realty sector and allied sectors. This can automatically translate into higher demand for logistics and warehousing. Moving forward, we expect greater institutional participation in logistics, especially warehousing develop ment. We will have more funds with specialist fund managers to concentrate and manage such investments. With implementation of GST, scale from logistics will move from unorganised to organised and mere warehousing is likely to make way for integrated logistics parks.This will surely see private equity players'and investors'curiosity about logistics going up

Among China's largest developers, Dalian Wanda Group, signed a pact with the Haryana government last year to produce Wanda Industrial New City with an investment of $10 billion over 10 years. An agreement signed between China Fortune Land Development Company and Haryana state will also see large format industrial parks appear in the state.

Some other announcements such as for instance development of smart cities by ZTE and Neemrana Japanese investment zone are pointing at rising appetite for such assets.

We plan to set up a logistics and warehousing division and raise a dedicated logistics and warehousing fund to invest across India. It will develop around 10 million sq ft of warehousing and logistics space around Delhi, Mumbai, Pune, Chennai, Bangalore, and Nagpur -cities with industrial hubs.

Based on experts, the logistics expenses could be set off as input costs by manufacturers once Goods & Services Tax is implemented.This is expected to create warehouse hubs located from expensive urban locations equally attractive. In these locations propertyin Mumbai  will come in larger format and thus more and more Integrated Logistics Parks could be developed which will offer further value add the supply chain management.

Tax parity across states means logistics hubs could be developed on the basis of connectivitay rather than octroi boundaries. Disadvantages of crossing over tax jurisdictions in the supply chain are gone and GST supplies a tax neutral environment to logistics industry.

Besides logistics, key leasehold retail realty assets around the world attended on the private equity players'radar. Reasons with this include well-managed Grade-A malls starting to take pleasure from better occupancy with rent escalation on the cards following a lull of six to seven years. Such well-managed assets entities will continue steadily to attract investor focus.

In 2016, GIC bought a 50% stake in Viviana Mall of Sheth Developers in Mumbai, Blackstone acquired the retail portfolio of Alpha G Corp through an entity level deal, and Blackstone also bought 50% stake in Pune's Westend Mall.

Various new regulations such as for instance easing foreign investment for single-brand retailers, longer shopping hours and an updated framework for establishing Real Estate Investment Trusts (REITs) have attracted the eye of varied private equity funds like Blackstone, Xander, GIC, Morgan Stanley towards the India property sector.

Prices at a bigger Trump Tower in Mumbai raised by 10-15%

The ascension of Donald Trump to US presidency has clearly rubbed off on his family's property projects in India, with property prices at Trump Towers in Mumbai and Pune rising around 15%.

“There's been plenty of inflow of inquiries from non-resident Indians (NRIs) from international markets in addition to Indian clients for apartments here, especially after Trump's victory in US presidential elections that sold apartments at the country's first completed Trump Towers in Pune. “Prices have appreciated 15-18% over the last half a year alone, predicated on offers being created by these clients. However, you will find only few apartments left to be sold.

Prices at a more impressive Trump Tower being built-in Mumbai by Lodha Group, too, have increased 10-15% since Trump was announced while the Republican Party's presidential candidate in July last year, dealers said.

The Trump Organization currently has three super-premium residential projects in Mumbai under construction in Mumbai, Kolkata and Gurgaon, besides a professional tower in Gurgaon, making India the second-largest market after the US for Trump's property business.
The Trump Organization has no equity stake in some of these projects. The brand has been licensed to Indian developers inturn for a royalty.

Panchshil Realty developed Trump Tower in Pune's tony Kalyani Nagar, that was delivered last year. You will find 46 super luxury apartments in  Mumbai this project, each occupying a complete floor and spread over 6,100 sq ft.

According to Nagrani, prices in the tower are hovering around Rs 22,000-23,000 per sq ft now, up from Rs 18,000-20,000 in May-June.The buyers include industrialists, top executives, diamond merchants and Bollywood personalities besides NRIs.

The 400-apartment Trump Tower in Mumbai, being built by Lodha Group as part of its The Park project in Lower Parel, too, gets plenty of enquiries despite it being truly a by-invitation project.
“Enquiry levels have risen since last couple of weeks post US presidential elections. Prices have risen around 10-15%.ET's email queries to Lodha Group and Panchshil Realty remained unanswered before the time of planning.

Lodha had entered in to a partnership with Trump Organization in 2013 to create Mumbai's first and only Trump Tower under a royalty agreement. The construction began in 2014 and the project is anticipated to be completed by 2018.

The 75-floor, 800-feet Trump Tower in Mumbai is spread over a 17.5-acre plot. The residents of the project will soon be offered a private jet facility, Trump's famed white glove service, special services and benefits at Trump Hotel Collection amongst other facilities, channel partners said. The residences are priced between Rs 9 crore to Rs 25 crore. As the project offers customised penthouses, three and four bedroom apartments are spread over 2,100 sq ft and 2,450 sq ft, respectively.

According to channel partners, Trump projects have been receiving 30% premium over other projects in the vicinity.

New Property in Mumbai Requires Transparency to Become Global

Property in Mumbai along with property in the rest of the country attracts less than one percent of the global funds that flow into the global real estate market annually. Attracting a mere six billion dollars in investment from overseas is certainly not praiseworthy and may in fact be a cause for alarm. The reasons for the poor show by the Indian real estate market is simply due to the fragmented nature of the industry that has a few set norms and standards for builders and developers to adhere to. Furthermore a lack of transparency combined with poor regulatory governance has deterred serious PE funds from investing in much of the property in Mumbai and in projects in much of the rest of the country.

The Center’s Thoughtful Decision

Projects in Mumbai stand to benefit from the recent measures undertaken by the central government, which shall increase transparency and make it feasible for PE firms to confidently invest in Indian real estate. Better governance and better industry practices will provide a shot in the arm to Indian realty. The industry has a dire need to attract far more global capital than it does today. 

The Need For Credibility and Governance

The CREDAI (Confederation of Real Estate Developers Associations of India) has more listed more than 11,000 builders and developers across India yet only a little more than 120 such builders and developers have been able to deliver all projects over the past twelve years in the time stipulated. Comparable to the percent of global foreign funds that flow into India, the number of Indian builders who consistently deliver projects in a timely fashion also stands at a paltry 1 percent, which deters both investors and end users from entering the market.

The Attraction of Being Attractive

Only a few builders in Mumbai and across the rest of India have been able to attract foreign PE funds to invest money in their projects. Once builders have found themselves governed by the stipulations of RERA (Real Estate Regulatory Act) and bestow greater transparency to customers and PE funds, the projects of such builders and developers in Mumbai and projects in other cities in India will attract greater foreign funds to launch projects and enjoy greater sales in the primary market respectively. 

The trust deficit, which many builders and developers in Mumbai suffer from, must be addressed in order for the countries real estate market to truly become global. Trust must be earned not only from end users but also from foreign PE firms to ensure the maturation of the business practices of builders in Mumbai and of real estate in India as a whole. 

The redevelopment of Mumbai's oldest chawl clusters result in construction of 292 acres

The state urban development department issued a notification appointing the Maharashtra Housing Area Development Authority (Mhada) since the nodal agency for the redevelopment of the N M Joshi Marg, Naigaum, Worli and Sewri Bombay Development Division (BDD) chawls.

Mhada issued a tender notice inviting bids for the redevelopment of the N M Joshi Marg and Naigaum chawls. N M Joshi Marg is spread over 13.9 acres; as per the tender notice, the gross construction area is estimated at 5.2 lakh sq metres, or 127 acres. Naigaum is spread over 13.39 acres; its gross construction area is estimated at 6.7 lakh sq metres, or 165 acres.

No cluster or clusters will be identified for redevelopment or implementation of Urban Renewal Scheme (URS) by the officer appointed by the planning authority without carrying out an effect assessment study about the affect the city and sector-level infrastructure and amenities in addition to traffic and environment of the implementation of URS on such cluster or clusters."

A senior civic official said impact assessment would help in phasing out the project in Mumbai."The phases that may be supported by the existing infrastructure may be taken on first while those that need infrastructure upgrade can be achieved later. Laying infrastructure in a town like Mumbai takes a lot more time than reconstruction.

Activists said your choice to issue tenders without understanding the impact of a structure of this nature on existing infrastructure would only adversely affect citizens. The impact assessment report has been made mandatory by the Bombay high court.

Content Tax incentives are unlikely to Impact realty in Mumbai: Union Budget 2017 Residential Real Estate Property Market in Mumbai

BDD chawls are home to erstwhile mill workers and other low-income group families who currently live in 160 sq feet tenements Mumbai Property. After redevelopment, they will be eligible to 500 sq feet carpet flats.

At Naigaum, Mhada has proposed 20 rehab buildings ranging in habitable floors from 19 to 23, commercial shops on a lawn floor and basement and ground level parking.

The four sale buildings will each be 60-storey high, with six-level podium parking, besides basement-and-ground parking. A different 20-storey building will be constructed for shops and offices.

Tax incentives are unlikely to Impact realty in Mumbai: Union Budget 2017

The Union budget might have given infrastructure status to the actual estate sector along side a couple of tax incentives but these are unlikely to impact the Mumbai realestate market in a huge way.

In accordance with both builders and experts, these incentives are unlikely to offer a boost to the realty sector, especially if it is facing an enormous slowdown.

Sukhraj Nahar, chairman and managing director of Nahar Group stated that the budget doesn't provide any respite to the buyers. “We'd anticipated that the budget could have measures to fix market drawbacks as a whole. It, however, ignored the consumers owned by the middle-income group that forms the greatest segment of real-estate buyers,” said Nahar. He added, “It has left little room for any property in this region to be within the reach of the common man.”

He said that the criteria of houses to be constructed with a carpet section of 30 square metres, was not practical as people surviving in metros prefer bigger houses.

Finance minister Arun Jaitley had in his speech stressed that the Union government was devoted to providing affordable housing schemes. He changed the criteria for affordable housing in Mumbai from built-up section of 30 and 60 square metres to carpet section of 30 and 60 square metres. 

Jaitley also declared that  buildersin Mumbai who'd be roped set for constructing affordable houses will be exempted from tax on the profit for five years.

But experts stated that adequate attention was not paid to prospective buyers who have been shying far from the market. “The middle-income group tax payers, who have been the ones badly hit during demonetisation, have already been ignored in this budget,” said Amit Wadhwani, managing director of Sai estate consultants, a major consultancy firm in the city. He added, “There is no relief in service tax or the worth added tax, which tends to improve the builders'expenditure.”

The realty sector is, however, enthused while the affordable segment has been given the infrastructure status. Now, developers can access foreign funds at a cheaper rate and also be considered a priority consumer for Indian banks.

The Union finance minister also stated that the us government plans to create 1 crore houses for the poor by 2019 combined with allocation of Rs23,000 crore for Pradhan Mantri Awas Yojana to fulfill its agenda of “Housing for All” mission by 2022.”