Mumbai builders to roll out 1,50,000 homes in next three years
Real Estate

Mumbai builders to roll out 1,50,000 homes in next three years

The real estate market in Mumbai may witness a boost in housing stock as builders are set to roll out at least 1,50,000 homes over the coming three years.

Consequently, the real estate prices could decrease, as per the experts. Last year, the Brihanmumbai Municipal Corporation (BMC) had halved the construction premium for one year creating a beeline of builders asking to benefit from the discount.

Builders have paid a record premium to the tune of Rs 13,543 crore for the development of a 150 million sq ft area.

As per the real estate research company Liases Foras, with an average size of 1,000 sq ft per house, 1,50,000 housing units can be developed on 150 million sq ft space. If these are to be rolled out in three years, an average of 50,000 houses will be issued per year. About 1.5 lakh homes will be added to Mumbai’s unsold inventory, which presently stands at 1,10,000 units.

They will be inundated with record new launches and it will completely be a buyer’s market. Builders will be forced to decrease costs to sell their products, as per Pankaj Kapoor, managing director, Liases Foras. He told the media that an average of 20,000 new homes were rolled out yearly for years which will increase to at least 50,000. It implies that the city will get more than double the current supply of homes which will change the dynamics of this sector.

Additionally, he said that the builders must roll out their projects as they have already paid the total premium amount. There is an interest cost linked to this premium amount which the builder had paid, and thus they cannot afford to delay their launches. They will be commencing their projects within the coming three years.

Image Source

Also read: Mumbai's property registrations witnesses robust momentum in Feb

The real estate market in Mumbai may witness a boost in housing stock as builders are set to roll out at least 1,50,000 homes over the coming three years. Consequently, the real estate prices could decrease, as per the experts. Last year, the Brihanmumbai Municipal Corporation (BMC) had halved the construction premium for one year creating a beeline of builders asking to benefit from the discount. Builders have paid a record premium to the tune of Rs 13,543 crore for the development of a 150 million sq ft area. As per the real estate research company Liases Foras, with an average size of 1,000 sq ft per house, 1,50,000 housing units can be developed on 150 million sq ft space. If these are to be rolled out in three years, an average of 50,000 houses will be issued per year. About 1.5 lakh homes will be added to Mumbai’s unsold inventory, which presently stands at 1,10,000 units. They will be inundated with record new launches and it will completely be a buyer’s market. Builders will be forced to decrease costs to sell their products, as per Pankaj Kapoor, managing director, Liases Foras. He told the media that an average of 20,000 new homes were rolled out yearly for years which will increase to at least 50,000. It implies that the city will get more than double the current supply of homes which will change the dynamics of this sector. Additionally, he said that the builders must roll out their projects as they have already paid the total premium amount. There is an interest cost linked to this premium amount which the builder had paid, and thus they cannot afford to delay their launches. They will be commencing their projects within the coming three years. Image Source Also read: Mumbai's property registrations witnesses robust momentum in Feb

Next Story
Infrastructure Transport

NHAI to Upgrade Tamil Nadu Highways

To reduce congestion on key national highways in Tamil Nadu, the National Highways Authority of India (NHAI) has planned capacity upgrades for at least eight highway stretches. The improvements will include bypasses, flyovers, and four-laning in Salem, Coimbatore, Tiruppur, Nilgiris, and Cuddalore. NHAI has invited tenders to appoint consultants for preparing detailed project reports (DPRs) on these expansions. The affected highways include NH-181, NH-81, NH-532, NH-85, and NH-136. Proposed Upgrades Across Highways - NH-181 (Coimbatore-Gundlupet Route): This stretch will see four bypasses an..

Next Story
Infrastructure Transport

Ludhiana-Bathinda Highway Revived as NHAI Invites Bids

The Ludhiana-Bathinda highway project, initially stalled due to land acquisition issues, has been revived as the National Highways Authority of India (NHAI) invites fresh bids to resume construction. The project, part of the Ludhiana-Ajmer Economic Corridor, is estimated to cost Rs 24.61 billion and will be executed in two phases. Package 1, covering 30.03 km, has a budget of Rs 9.06 billion, while Package 2, spanning 45.25 km, is set to cost Rs 15.55 billion. The NHAI had previously withdrawn the project due to unavailability of land. However, intervention from Union Minister for Road Trans..

Next Story
Infrastructure Urban

Dilip Buildcon Wins Rs 460M Arbitration

Infrastructure major Dilip Buildcon has secured an arbitration award of Rs 460 million against the National Highways Authority of India (NHAI) over delays and breaches during the execution of a highway project in Karnataka. The dispute pertains to the Rehabilitation and Upgradation of the Kerala Border to Kollegala Section of NH 212, awarded to Dilip Buildcon under an Engineering, Procurement, and Construction (EPC) agreement dated June 6, 2014. The project involved two-lane expansion with paved shoulders and four-lane development under the National Highways Development Project (NHDP) Phase IV..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?