Like every other city, the real estate sector of Mumbai too faced a long muted season. However, the year 2015 seems to be promising for the properties in Mumbai.
Formation of new government at the centre, better performance by stock market (in both bull and bear phases), launch of affordable housing policies by government, improvisation of value of Rupee in comparison to Dollar, active role of MMRDA (Mumbai metropolitan region development authority), MHADA (Maharashtra Housing and Area development authority) and REIT (Real estate investment trust) are few of the major factors for boosting up the property market of Mumbai.
But even after entering the phase of improvisation, the real estate market of Mumbai is still facing a paradox situation when it comes to equal marginal demand and supply curve. According to JLL (Jones Lang LaSalle) Report, the reason of this paradox situation is the unplanned crumbling housing infrastructure.
Where on one end there is an excess supply of houses for the higher income segments, on the other end the middle and low-income group are facing a shortage of housing projects by 20 to 30 % and 90% respectively. Moreover, high variation in prices has also resulted in such a situation.
For instance, where the high luxury residential projects range from Rs 10,000/- to Rs 30,000/- per sq ft, the middle-level housing units range from Rs 5000/- to Rs 9000/- per sq ft. And on the other end, lower residential housing units vary between the price range of Rs 2000 to Rs 3000/- per sq ft.
The uneven supply of residences and with such a variation in prices, it seems difficult to the real estate market of Mumbai to again get into the state of revival.
However, after analyzing the current property market situation it can be said that Mumbai will soon enjoy a healthy recovery. Recent infrastructure policies across Mumbai Metropolitan region covers almost all social economic issues like urban development, planning, infrastructure, solid waste management and traffic pollution control along with the proper growth of real estate sector.
The SRA (Slum Regulation Authority) and DCR (Development Control Regulations) are also playing an important role in the redevelopment of real estate sector.
The combined efforts of government authorities and real estate developers will surely increase the value of property market in Mumbai. And with the arrival of the festive season, developers and builders are trying to lure the buying sentiments of customers via many offers and discounts.
This is all about real estate market of Mumbai. Hopefully, the year will end on a positive note for Mumbai property market.