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- Mumbai's public lost out on...
Dear Vinod your observation is correct.
In my opinion the sudden decline in the prices comes as a result of the apex court order for opening up mill lands in central Mumbai for development. In contrast to The craziness of prices going up everyday we will see a correction and more stability in the prices. The Supreme Court has left no legal recourse left, but to follow the 1991 Development Control Rules. All mill land developers has to surrender two-thirds of the total area for public open spaces, civic use and low cost housing.
This was supposed to be implemented way back but .....
Mumbai's public lost out on:
This mill land redevelopment issue involves mill owners, workers, real estate developers and the government, and the larger public that has lost out the most. The public should have got 160 acres of open space; instead they got 35 acres. 160 acres of land should've gone for low cost housing; that's come down to 25 acres. Mumbai has the lowest ratio of open spaces to population in the world; it's 0.003 acres per population of 1,000; even Delhi has more.
As far as residential stock is concerned, only Bombay Dyeing's Spring Mills at Naigaum and Apollo Mills at Saat Rasta have planned residential complexes. The owners of other big mills like Mumbai Textiles, Jupiter, Kohinoor and Elphinstone have all planned commercial developments.
Hence, commercial and rental values are expected to come down by 10-12% in the next four months in this belt. According to the experts, an additional 12.5 million sq ft of incremental real estate in central Mumbai would come into the market. This would translate into about Rs 10,000 crore worth of real estate market stock !!!
Whether the real estate market can sustain this bull run will have to be seen. But as the supply increases, prices will stabilise. Elsewhere in the city, there will be an overall impact.CommentQuote0Flag