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Mumbai Real Estate Analysis 2019-2020 by Homebookingindia


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Real estate is one of the major contributors to India’s GDP, and the market saw several progressive policy reforms in the last couple of years. While it’s true that most of these reforms were taken back in 2017-2018, the impacts were seen largely in 2019-2020

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Mumbai Real Estate Analysis 2019-2020 by Homebookingindia

  1. 1. M u m b a i Real Estate Analysis 2 0 1 9 - 2 0 2 0
  2. 2. It's not h ow big the house is, it's h ow happy the home is.......
  3. 3. PRESENTATION OVERVIEW Main Points of Discussion Mumbai Residential RealEstate Mumbai Factfile MumbaiInfrastructure All About RERA Impact of RealEstateReformsin2019-2020 IncreaseinReal-Estate SalesandLaunches Isit WisetoinvestinRealEstatein2019 and2020? Major Infrastructure upgrades of 2018 Upcoming Infrastructure projectsin MMR Howwill MumbaiRealEstateFare in2020? Maharashtra leadsthe way inRERA Implementation ThankYou
  4. 4. TheMumbai Residential Real EstateOverview July2012,looks atsome of the key trends in theMumbai Residential real estate markets. Real estate prices in Mumbai may continue tosee an upward trend in the short term(1year view) duetoseveral factors. Hugeunmetdemand for homes in thecity is accompanied with a slowdown in supply duetotheslow paceof approvals from sanctioning authorities. Thetimefor completion of projects has increased to4 - 5years from the earlier 2- 3years, leading toincrease in input costs for developers. In addition tothis, land continues tobeata premium and bank finance rates have been firm. M u m b a i Residential Real Estate
  5. 5. Mumbai,whichwas previously knownas Bombay is a majormetropolitan cityof India. It is thestatecapitalof Maharashtraandis knownas thebusiness capitalofIndia. It has thelargest andbusiestporthandling India's foreign tradeanda majorinternationalairport. India's largest stockexchange,whichranks as thethirdlargest in theworld,is situatedin Mumbai. Established in 1875,it is oneof theoldeststockexchangesofAsia wheretrading of stocks is carriedoutin billions of Indian rupeeseveryday. M u m b a i Fact File
  6. 6. M UM BAI INFRASTRUCTURE Western Express Highway Western Express Highway in Mumbai (25.33kms in length) begins near Mahim creekand extends to the Mira - Dahisar toll booth, connecting Bandra,Andheri, Goregaon, Kandivali, Borivali uptoDahisar. Beyond thecity limits, it continues as theMumbai - Delhi National Highway8. Eastern ExpressHighway Eastern Express Highway in Mumbai (23.55kms in length) serves as a link to theNational Highway 3.The expressway has a total of 6lanes and it connects all thesuburbs of North Mumbai with South Mumbai. Sion Panvel Highway cuts theEastern Expressway at theRCFjunction and connects it to theouterareas of thecity where it is popular by thename of Dr.AmbedkarRoad
  7. 7. Proposed Santacruz - Chembur Link Road (SCLR) TheSantacruz - Chembur Link Road, which is currently under construction shall beconnecting theWestern Expressway and theEastern Expressway in addition to the existing connectors i.e.theGoregaon - Mulund Link Road, theJogeshwari - Vikhroli Link Road and theAndheri - Ghatkopar Link Road. MMRDA is thenodal agency for theproject while Maharashtra State Road Development Corporation (MSRDC) is theimplementing agency. TheSCLR, part of theWorld Bank - funded Mumbai Urban Transport Project, will enhance theconnectivity between theeastern and western suburbs and cutthedistance between Chembur and Santacruz to a 15- 20 minute ride. However, the 6.45km Santacruz - Chembur Link Road (SCLR) is speculated to miss its fifth deadline of December 2012owing to a delay in approvals. Engineers working on theproject, theconstruction of which started in 2003,expect it to becompleted only by June 2013.
  8. 8. IMPACTS OF THE REAL-ESTATE REFORMS 2 0 1 9 - 2 0 2 0
  9. 9. Real estateis oneof themajorcontributorstoIndia’s GDP,andthemarketsaw several progressive policy reforms in thelast coupleof years.While it’struethatmost of thesereforms weretakenbackin 2017- 2018,theimpacts wereseenlargely in 2019-2020 Thetwomajorreforms – theintroductionof GST,thelaunchof RERAandthegrant of infrastructure status toaffordable housing properties The GST was introduced in 2017with the ideology, “OneNation,OneTax.” GSThas madeit easy todo business in thecountry,seeing a markedincreasein infrastructuredevelopmentsandotherreal-estate projects. TheRERA(Real EstateRegulationAct)was introducedin 2016tobring uniformity in thereal-estate market. Today,theresults of theRERAcanbeseen– it has increasedtransparency in real-estate deals, improvedaccountabilityof builders,whichin turnhas ledtoincreaseddemandfrombuyers
  10. 10. Increase in Real- Estat e Sales and Launches
  11. 11. Real-estateprojectlaunches,andsales havegrown significantly. Onemajorshift in residential realty trendsis theincrease in demandfor mid-segment andaffordable housing,comparedtoluxury,high-end properties. Otherfactors thatdrovereal-estatesales in thelast year include– availability of a wide range of flexible paymentplans from NBFCs anddigital lenders,whichallows home buyers tobuypropertiesatlower EMI andinterestrates,comparedtotraditional lenders;incometax rebatesonhomeloans;CLSS;nofloor rise cost;discounts and freebiesoffered by builders.
  12. 12. Is it Wise to Invest in Real Estate in India in 2019 and 2020?
  13. 13. Abig YES! Consideringthevarious beneficialreal estatetrendslisted above,expertsareoptimistic aboutthefutureof thereal estateindustry in thecountryandlook forward tobrighterdays. As mentionedin thebeginning,land is a scarceresource,and fundamentalsupply anddemandprinciples dictatethatwithhigher demandandlesser supply,propertyprices aresuretogoup. So, if youarelooking toaddreal estatetoyour investmentportfolio, thennowis theperfecttimetoget started.
  14. 14. M ajor Infrastructure upgrades of 2018
  15. 15. According to TheEase of Living Index (an initiative of the Ministry of Housing and Urban Affairs) Survey 2018,Mumbai tops the physical infrastructure segment among all cities in India. Thissegmentincludesaspectssuchas infrastructure,transport,housing,andpollution levels,amongother parameters. Additionally, thestategovernmenthas also extendedits supporttoreal estatedevelopment by revising its policy toallow developerstoutilise theavailable land parcels. Theyhavealso includedunutilised land in special economiczones,land under environmentally sensitive zones,andafforestation areas tounlockthemaximum developmentpotentialof theland.
  16. 16. Upcoming Infrastructure Projects in MMR
  17. 17. How Wi l l Mumbai Real Estate Fare i n 2020?
  18. 18. Mumbai has witnessed rapid urbanisation over thelast two decades.So muchso thatthecity has now expanded to include theMumbai Metropolitan Region (MMR) which comprises of Greater Mumbai,Navi Mumbai,Thane,and thetwo peripheries, namely, western peripheries suburbs and thecentral peripheral suburbs. MMR, today, is one of the largest real estate markets in India. It contributes about 25% of the overall supply across the top metro cities. This will betheyear of affordable housing, and not surprisingly, outof thetotal new supply, 48% was in theaffordable segment(less than Rs 40 Lakh),34% in thepremium segment (Rs 70 Lakh and above),and 18%in themid-segment (Rs 40-70 Lakh). In terms of BHK configuration, 1BHKsand studio apartments ruled theroost with maximum supply (47%), closely followed by 2BHK apartments. Micro-markets such as Malad, Kandivali, Nerul, and Byculla saw a numberof new projects launched in 2018with growing demand from homebuyers.
  19. 19. Maharashtra leads the way i n RERA implementation
  20. 20. Maharashtra was thefirst statetoadopt theReal Estate(Regulation and Development)Act (RERA).It also has oneof themost comprehensiveand updatedRERA websites.