Announcement

Collapse
No announcement yet.

Mumbai Real Estate News

Collapse
This is a sticky topic.
X
X
Collapse

Mumbai Real Estate News

Last updated: 16 hours ago
6300 | Posts
  • Time
  • Show
Clear All
new posts
  • #21

    #21

    Re : Mumbai Real Estate News

    matchbox

    with builders cutting spaces to fit in customers budgets and people still buying in Mumbai, basically we are living in match boxes. The day is not far when builders will start cutting areas and will end up with 6 X 6 rooms equal to toilets

    Comment

    • #22

      #22

      Re : Mumbai Real Estate News

      More vacant houses in Thane and Poone

      14.99% houses are vacant in city: Census
      Thane stands second in the list of cities with most vacant houses in the state
      DNA news 5.4.12


      While people are struggling to buy a house in the city, the data provided by the Census Directorate reveals that around 14.99% homes are vacant in Thane. Thane is the biggest district in the state with a population of 1,105,4131 and it constitutes 9.84% of the total population of the state.

      Apart from being the biggest district, one would be surprised to know that Thane stands second in the list of cities with most vacant houses in Maharashtra. Pune stands first with 5,78,090 vacant houses. Thane has a total of 36,18,151 homes, of which 5, 42, 463 are lying vacant while the rest are occupied. Mumbai has 1,15, 947 vacant houses and Mumbai suburban has 3,63,895 vacant houses.

      A developer, on condition of anonymity, said it is not possible that so many homes are vacant. “Five lakh is a very big figure. There aren’t so many constructions in Thane in the last decade that the figure of vacant homes is so huge. There is something faulty in this figure,” he said.

      “Census is done by government. We cannot challenge their figures. If developers say that there are no vacant homes it is not possible.

      “Developers deny this because when the houses are ready and rates are low, developers allot it to investors. Once the rate rises, they open it for sale,” said Rakesh Kapoor, a realtor from the city.

      Out of the total occupied houses in Thane, 77% are used for residential purpose while 8.3% are used for non-residential purpose.

      Comment

      • #23

        #23

        Re : Mumbai Real Estate News

        This could be very much true, My French Class professor lives in Wadala on the 20th floor. We were discussing about the property & prices and She says that prices have gone over the top and that more then 50% of the flats in her building are empty.

        Comment

        • #24

          #24

          Re : Mumbai Real Estate News

          Also, looks the new rule/law where even investors have to register the flats/Sales deeds will bring down the property prices.

          Comment

          • #25

            #25

            Re : Mumbai Real Estate News

            I checked in Vile Parle and there are hundreds of investors flats for sale with no buyers. Existing building proposals are being scaled down due to BMC audit and construction has come to a standstill. investors are stuck holding the bag. Do not buy under construction property in this market.

            Comment

            • #26

              #26

              Re : Mumbai Real Estate News

              Property experts said a lot of developers took the plunge as it was the only segment that was doing well. And, since unit sizes were small, more houses were built in a given piece of land. Supply has overshot demand and, therefore, we are seeing a piling up of inventory," said a consultant.

              Comment

              • #27

                #27

                Re : Mumbai Real Estate News

                Adarsh scam: Navy didn’t directly approach MMRDA to object OC, says Gaikwad

                The naval authorities had never approached the Metropolitan Region Development Authority (MMRDA) objecting against the Occupational Cetificate (OC) issued to Adarsh Cooperative Housing, chief secretary and former metropolitan commissioner, MMRDA, Ratnakar Gaikwad has told the Adarsh Commission. The two-member panel looking into irregularities in the 31-storey building, was examining Gaikwad who had given the OC to the building in 2010 when he was with the MMRDA.

                “MMRDA never received any direct representation from naval authorities for not issuing OC. The naval authorities first approached the Government... and MCGM (Municipal Corporation of Greater Mumbai) with a request to not issue OC for Adarsh,” said Gaikwad. The Navy was opposed to the issuance of OC citing security threats. Although a letter was never directly written to MMRDA, the concern was forwarded to the department by the state government. Gaikwad had replied to it saying that the naval authorities may approach Commissioner of Police, Mumbai, or the appropriate authority if it had reasonable apprehension about anti-social elements in the society.

                Gaikwad, who concluded his testimony on Wedneday, had earlier told the commission that the housing society had constructed extra floors without taking due permission from authorities and penalty was subsequently levied on the society.

                Gaikwad claimed he was unaware that the Ministry of Environment and Forests (MoEF) had withdrawn the state government’s proposal for Coastal Regulation Zone clearance to the plot.

                Last week, MoEF director Senthil Vel had told the commission that the state government had “misinterpreted” MoEF’s letter and had taken it as the ministry’s approval for development of Adarsh plot. He said when the Ministry withdrew powers of granting CRZ II clearances from state governments in 2003, neither Adrash society nor Maharashtra government approached the MoEF for CRZ clearance.








                Adarsh scam: Navy didn’t directly approach MMRDA to object OC, says Gaikwad
                Please read IREF rules | FAQ's

                Comment

                • #28

                  #28

                  Re : Mumbai Real Estate News

                  Online application tracker to aid builders

                  After Chief Minister Prithviraj Chavan directed it to clear all files pertaining to building permissions within 60 days, the BMC now wants to develop an online application tracker system for builders and developers to keep a tab on their applications.

                  At present, builders have to approach fire brigade, storm water drainage, water and other civic departments to learn the status of no objection certificates. The CM had earlier this year directed that department officials carry out this entire procedure to cut red tape and corruption and reduce the time taken in accepting and clearing a new building permission.

                  Chief engineer (development plan and building proposals) Sudhir Ghate said that in order to take it forward, their department had approached the BMC’s IT Department with a proposal to create a link on the BMC’s website. “The idea is to help builders and architects know the status of their application once they have submitted all their plans and papers to BMC. This will help them know if their proposal is stuck with some department,” he said.

                  An official within the IT Cell of the BMC said, “Just the way in which you can track things online these days such as college admissions or status of your courier parcel, a developer will be able to track the status of his building proposal application. This will reduce direct interface between him and BMC officials and minimize chances of corruption.”

                  There are about 30 sub-engineers in the BMC’s building proposals department who accept proposals, send them for scrutiny and then either approve them or send out the intention of disapproval (IOD). Each of them will be given a username login to update the information regularly.

                  Earlier it took three months to a year for building permissions to get cleared by the building permission department, but the CM’s directive and the revised DCRs that reduce discretionary powers of the municipal commissioner have expedited the process. While earlier, about 600 proposals would be cleared in a year, as many as 100 building proposals were cleared last month alone.




                  Online application tracker to aid builders
                  Please read IREF rules | FAQ's

                  Comment

                  • #29

                    #29

                    Re : Mumbai Real Estate News

                    Mumbai’s Lower Parel: One of the most coveted piece of real estate in the country’s financial capital hard to sell

                    MUMBAI: Behind the glass facade of the swanky new office buildings in Mumbai's Lower Parel area , the light is fading. Many of these buildings, touted as the most coveted piece of real estate in the country's financial capital, remain nearly half empty despite being ready for almost a year now.

                    Office rentals have now fallen to almost one-third (down 36%) of what it was three years ago. What was available for Rs 275 per sq ft three years ago is now on offer for Rs 175 per sq ft. Yet, there are few takers and, despite plunging rentals, the area is still witnessing a building boom.

                    Huge office complexes tower over shanties, slums and cacophonic traffic. Dozens of small shops, which used to cater to mill workers a few decades ago, are still around, sitting cheek by jowl with gleaming showrooms selling high-end furniture. Cars, bikes honking furiously clog the narrow roads, while on weekends, luxury sedans queue up to enter one of the many shopping complexes that *** the area.

                    The entertainment industry is doing very well, the restaurants are full and bowling alleys and dance floors are packed. But, it is the office space developers who are feeling the pinch of the economic slowdown. In the past four years, Lower Parel alone has seen launch of nine major projects, with office space of nearly 8 million sq ft, more than the entire Nariman Point, long the hub of Indian businesses. The total office space in-place at Nariman Point is 6 million sq ft, which was absorbed and used over 40 years, and till 2005 that was enough to sustain the city's business.

                    Developers Offer Discounts

                    Now, the city has a total 85 million sq ft ready and under-construction office space. "Do we have tenants ready for this kind of supply in the shortterm ? The answer is 'no' ," says Aniruddh Wahal, director - transaction services at property consultancy firm DTZ. "Certainly , not at the speed witnessed during 2005-2008 , which set the expectation for this breakneck pace of development." Given the oversupply , developers have now lowered rentals while some are also looking at outright sales of buildings as against leasing them.

                    One such player is Alok Realtors, the real estate arm of Alok Industries. Alok had bought a commercial building from Peninsula Land four years ago and has been trying to sell it completely. Only around 30% of this 615,000-sq-ft ready building has been leased so far. The rest is vacant. "Developers stuck with inventory here are ready to offer big discounts to attract tenants and buyers. Some of them are even ready to negotiate the deal close their cost price," says Ashok Kumar , MD of international property consultancy firm Cresa Partners.

                    Lower Parel, of course, isn't an isolated case. Other places such as Nariman Point and Andheri are also hobbled by poor offtake , with rents falling by up to 30%. The only exception is Bandra-Kurla Complex (BKC), where rents have risen 40%, but experts say the peak may have been attained here. Key buildings that have major vacancy levels in Lower Parel are Peninsula Business Park A and B where 83% and 70% space is yet to be leased, respectively.

                    Marathon Futurex, of which so far only first phase is ready, also has nearly 92% vacancy, while One Indiabulls and Indiabulls Finance Centre have 15% and 30% vacancy, respectively , showed data from DTZ. Although Lower Parel's problem may be amplified by the sheer size of the oversupply, the scenario is not very different across Mumbai . According to property brokers , between 2003 and 2005, when foreign direct investment started flowing into the economy, the demand for office space grew manifold , driving developers to build more.


                    Availability ratio for commercial space was at a record high of 23% in the quarter ended March 31. During this quarter, Mumbai witnessed new supply of approximately 2.65 million sq ft, taking the overall office stock in the city to over 85 million sq ft. The result: Falling rental values, but relatively stable capital values. In the quarter ended March 2012, rental values for grade 'A' building in Nariman Point in South Mumbai, fell from Rs 425 per sq ft three years ago to Rs 325 per sq ft a month, off its peak of Rs 450 per sq ft in 2008.

                    However, capital values here are still at Rs 33,000 per sq ft, not very far from peak rate of Rs 35,000 per sq ft in 2008, says a report by DTZ. "Nariman Point has actually gone down significantly from its peak level as there is no deal taking place at all. It's a frozen market , but people are not writing it off as a ghost market yet due to its connectivity, social infrastructure and prime residences," Wahal says.

                    Lower Parel's central location advantage and availability of large mill land parcels caught the fancy of realty developers in the early part of the last decade, when the public sector National Textile Corporation began selling old mill land in the heart of the city. Rising demand for commercial space and cost arbitrage compared with expensive Nariman Point - the main office district in the city - with limited supply, fuelled a construction boom.

                    There was demand from both Indian and foreign companies as they sought to expand their businesses . If Mumbai was to become Shanghai, the transformation of Lower Parel into a world-class commercial hub seemed the first big step. "We have to improve the infrastructure and carrying capacity first and then allow further development , not the other way round, the way it has been done so far. Forget about being an international finance centre, even the basic needs of citizens here have not been taken care of," says Mumbaibased urban planner Chandrashekhar Prabhu.

                    According to him, Mumbai scores the least in terms of amenity space with only 0.03 acre per 1,000 citizens against 12 acre in London, 17 acre in Washington D.C. and 15 acres in Moscow. The office complexes in the area are spacious, comfortable and provide everything that a business executive needs. Outside, the picture is very different. Squalid shanties, narrow roads, massive traffic jams are normal sights that greet visitors to the area. The amount spent on infrastructure is not anywhere close to the figure spent on property development.

                    Subhankar Mitra, head - strategic consulting (west) Jones Lang LaSalle India, says, "Since 2005, a whopping Rs 27,600 crore has been invested in land in Mumbai, excluding the confidential transactions and investments made into slum and other redevelopment projects. "Investments in mega infrastructure projects amount to only 60% of investments in prime land in the same period," he added. "Existing roads here do not have the potential to be expanded. Pressure on infrastructure is going to be huge once all the planned development comes through and gets occupied. One will have to be very creative in handling this issue and strictly enforce regulations ," says Pranay Vakil, chairman of Knight Frank India.

                    Property consultants and some developers believe that the wrong kind of oversupply has exacerbated the problem. "Unless it's required for a corporation's headquarters, tenants do not need large floor plates of over 50,000-60,000 sq ft for commercial office.

                    These kind of floor plates are good for an IT company, which typically look for space with around Rs 100 per sq ft a month kind of rentals," says a realty developer who did not wish to be named. According to him, this is the reason why some developers who built large floor plates are now looking at reconfiguration of those with splitting them into relatively smaller offices to attract customers.

                    Apart from this, some developers are also offering discounts. Developers like Indiabulls Real Estate are negotiating large deals by offering discounts on the going rate of Rs 150 per sq ft for its buildings at Lower Parel. The last major deal at one of its buildings took place at Rs 125 per sq ft a month against Rs 155 a year ago.

                    Hubtown, erstwhile Ackruti City, recently came up with an installment scheme at three nearly completed projects in Andheri and Jogeshwari. The scheme allowed a buyer to pay 40% as initial payment and the rest at a rate of 1% interest over the next 60 months.



                    Mumbai’s Lower Parel: One of the most coveted piece of real estate in the country’s financial capital hard to sell - The Economic Times
                    Please read IREF rules | FAQ's

                    Comment

                    • #30

                      #30

                      Re : Mumbai Real Estate News

                      Please read IREF rules | FAQ's

                      Comment

                      Have any questions or thoughts about this?
                      Working...
                      X