Mumbai: Real Estate Players Predict Robust Growth Within MMR

Mumbai: Real Estate Players Predict Robust Growth Within MMR

According to a report released by property consultants Knight and Frank, Mumbai city recorded property registration of 11,504 units in April 2024.

Bhalchandra ChorghadeUpdated: Monday, May 06, 2024, 07:09 PM IST
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Mumbai: Real Estate Players Predict Robust Growth Within MMR | Representative pic/ IANS

With the property registrations witnessing a 16% increase in the revenue to the excehquer and the state government maintaining status-quo on the ready reckoner rates, the real estate developers in the Mumbai Metropolitan Region (MMR) project a robust growth within the sector. They are optimistic about bigger purchases in the areas where connectivity has been resolved with the operationalisation of infrastructure projects such as expansion of Mumbai Metro, Mumbai Trans Harbour Link (MTHL), Coastal Road etc.

President of National Real Estate Development Council (NAREDCO) Maharashtra, Prashant Sharma said, "We are optimistic about the future of the real estate sector in the MMR. Our projections indicate a robust growth trajectory, driven by several key factors. First, the increasing demand for residential properties, especially in the affordable and mid-segment categories, is a positive sign. We also see a resurgence in commercial real estate, spurred by the growing IT and finance sectors.”

“Moreover, government initiatives such as the ease in FDI regulations and the focus on infrastructure development, including the expansion of the Mumbai Metro, Coastal Road and several other projects, are set to significantly enhance connectivity and accessibility, making real estate investments even more attractive. We are also mindful of the challenges, including regulatory hurdles and the need for faster project approvals. However, with the state government's commitment to improving ease of doing business and our concerted efforts to advocate for policy reforms, we are confident that MMR will continue to be a vibrant and dynamic market for real estate investment," Sharma added.

Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO, Maharashtra, Manju Yagnik said, “The residential real estate segment has demonstrated resilience, making it an appealing investment option for those with medium to low-risk tolerance. Despite experiencing numerous hurdles, this industry has weathered pressures, emerging as an excellent pick for many investors. The higher initial expenditure for commercial properties frequently drives investors to the residential segment. For people with limited funds and upkeep skills, residential real estate is a more accessible and practical option.”

Co-founder of PropFina, Nitin Singhal said, “With most micro markets experiencing higher supply than ever before, there will be corrections by the players who are highly leveraged. Those who have financially engineered their project portfolios and have control of their brand will have the least impact. Corrections can be anywhere between 10-15% and will be playing out uniquely to micro market dynamics. There also might be higher offtake in areas where connectivity issues are getting resolved.”

Commercial And Warehousing Sectors On The Rise Of Real Estate Trends

Stating that affordable housing will remain broadly unchanged, Singhal said, “When it comes to commercial segment, for the sake of brevity including retail and office spaces, the lease rates are going up and vacancies are going lower. With the opening up of small and medium real estate investment trust (SM REIT) there's a strong secondary market absorption potential. This segment might experience a northwards moment,” he said.

“Similarly, the land parcels are fast getting lapped up by major warehousing players, some of which are backed by sovereign funds looking for safe havens coupled with higher than inflation returns. The clear title land parcels between 50-100 acres will see increase in pricing especially along exits of Samruddhi Mahamarg, DMIC, Virar-Alibag Multi-Modal Corridor (VAMMC) etc. There will also be a new segment of multi-level last mile connectivity warehousing,” Singhal concluded.

April 2024 Trends And Consumer Preferences

According to a report released by property consultants Knight and Frank, Mumbai city recorded property registration of 11,504 units in April 2024, adding over INR 1,043 Crore to the state exchequer. As per the Maharashtra department of stamps and registrations, in April 2024, there was an increase in registration of apartments measuring up to 500 sq. ft., rising to 45% of all registrations. Of the total properties registered, nearly 86% of Western suburb consumers and 92% of Central suburb consumers opt to purchase within their micro market. This choice is influenced by the familiarity of the location, along with the availability of products that align with their pricing and feature preferences.

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