Demand remains strong, but Mumbai realty faces slowdown in supply
Real estate supply in Mumbais real estate markets are heading for a slowdown. This is because of the current capital crunch that developers are facing. According to Niranjan Hiranandani, MD, Hiranandani Group of Companies, despite a backlog of 23 million houses, weak buyer sentiment and squeeze on capital is forcing developers to hold back launches.
This slowdown will not be immediately felt in the market. But two years down the line, supplies are likely to be impacted. At the Real Estate Dialogues held in Mumbai by magicbricks.com recently, the collective view is that there is a need to manage the countrys fiscal and monetary policy. Mumbai faces chaos in regulation at state and central level, according to Chandresh D Mehta, Director, Rustomjee Group. He said "I do not see supply coming into the market. That will have its impact on demand. While affordability is driven out of the market, transactions are difficult to come by." However, he does not see any price correction in the coming time as there is no significant release in supply. Says Hiranandani, "Home loan is growing at 30-40%, compounded. This year there will be a slowdown as product launches are slowing down."
Shailesh Puranik, MD, Puranik Builders reiterated that the slowdown is taking place because of wrong policy measures and global factors. "There are a lot of supply constraints like policy, scam issues and people not wanting to give permissions," he said. He added that there is a lot of supply which is not coming into the market which was slated to come in the last year.
About 10 years ago, Mumbai Metropolitan Region (MMR) used to do twice the volume of the National Capital Region (NCR), says Dharmesh Jain, CMD, Nirmal Lifestyle." Today, MMR does 25% of the volume that NCR does. It is absolutely possible for volumes to happen if we innovate and create affordable homes," he said. On a lighter note he quipped that today Mumbai does well because of " lack of supply" than because of "-supply." There is a genuine issue of supply, and developers, like buyers, are waiting for the prices to fall in the city. After all, with affordability comes the volumes and who does not want to go for the sales volumes!Your own office space is tailor-made with flexible modular design to suit your everyday needs, with areas ranging from 500 sq.ft. To 10,000 sq.ft. Step into a world of shared services where you pay as per your use and leave behind the hassle of setting up an office or buying and maintaining expensive equipment. Now book the conference room for the time you want, get in touch with a travel desk or order coffee for your clients from the cafeteria. All this and more would be at your beck and call, and managed by professional agencies for you to enjoy uninterrupted business.
Some of the salient and shared services of Nirvana Suites that you can avail of are Wi-Fi enabled main reception, lounge, pantry services, valet parking for guests, dedicated parking slots, concierge services for all reservations, flight bookings and a common stationary centre which includes printer, copier and essential office stationeries.
Delhi Property
This slowdown will not be immediately felt in the market. But two years down the line, supplies are likely to be impacted. At the Real Estate Dialogues held in Mumbai by magicbricks.com recently, the collective view is that there is a need to manage the countrys fiscal and monetary policy. Mumbai faces chaos in regulation at state and central level, according to Chandresh D Mehta, Director, Rustomjee Group. He said "I do not see supply coming into the market. That will have its impact on demand. While affordability is driven out of the market, transactions are difficult to come by." However, he does not see any price correction in the coming time as there is no significant release in supply. Says Hiranandani, "Home loan is growing at 30-40%, compounded. This year there will be a slowdown as product launches are slowing down."
Shailesh Puranik, MD, Puranik Builders reiterated that the slowdown is taking place because of wrong policy measures and global factors. "There are a lot of supply constraints like policy, scam issues and people not wanting to give permissions," he said. He added that there is a lot of supply which is not coming into the market which was slated to come in the last year.
About 10 years ago, Mumbai Metropolitan Region (MMR) used to do twice the volume of the National Capital Region (NCR), says Dharmesh Jain, CMD, Nirmal Lifestyle." Today, MMR does 25% of the volume that NCR does. It is absolutely possible for volumes to happen if we innovate and create affordable homes," he said. On a lighter note he quipped that today Mumbai does well because of " lack of supply" than because of "-supply." There is a genuine issue of supply, and developers, like buyers, are waiting for the prices to fall in the city. After all, with affordability comes the volumes and who does not want to go for the sales volumes!Your own office space is tailor-made with flexible modular design to suit your everyday needs, with areas ranging from 500 sq.ft. To 10,000 sq.ft. Step into a world of shared services where you pay as per your use and leave behind the hassle of setting up an office or buying and maintaining expensive equipment. Now book the conference room for the time you want, get in touch with a travel desk or order coffee for your clients from the cafeteria. All this and more would be at your beck and call, and managed by professional agencies for you to enjoy uninterrupted business.
Some of the salient and shared services of Nirvana Suites that you can avail of are Wi-Fi enabled main reception, lounge, pantry services, valet parking for guests, dedicated parking slots, concierge services for all reservations, flight bookings and a common stationary centre which includes printer, copier and essential office stationeries.
Delhi Property
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