India Real Estate Link » Mhada

30-35% Drop Expected in Residential Price in Mumbai

rajani — Thu, 23 Oct 2008 12:07:39 +0000

Centrum Broking Pvt Ltd today shared findings from its research report on the Mumbai Real Estate Sector. It expects a 30-35% fall in India’s residential prices from the peak, with the Mumbai Metropolitan Region (MMR) estimated to witness the lowest fall of 20-30% until April 2009. Residential demand in Mumbai is estimated at 66mn.square feet vs 55mn.square feet supply The report says that the decline in real estate prices in Mumbai will bring back affordability and is expected to boost demand. The factors that are likely to result in a lesser price drop in MMR include.

The favorable demand supply equation shields against steep correction in Mumbai – Owing to its geography and high population density, Mumbai has limited land area and demand for quality properties tends to far outstrip supply, resulting in high prices. Slum rehabilitation, redevelopment unique business opportunity in Mumbai provides opportunity to real estate players participating in the highly lucrative slum rehabilitation and development business considering that half of Mumbai’s twelve million population lives in slums.

Strong cash flow visibility for Mumbai focused property developers – Stable cash flow of Mumbai focused developers will help these companies tide over the liquidity crunch. Mumbai suburbs to witness huge supply – The trend for suburbanization is likely to continue with suburban locations capturing demand for small to medium format spaces. Redevelopment of properties – Mumbai offers huge opportunities for developers in the redevelopment space. According to a survey done by the Maharashtra Housing Area Development Authority (MHADA) in 2006, Mumbai has 19642 dilapidated buildings that are more than 40-100 years old.

MMRDA Plans 5 Lakh Homes

rajani — Mon, 26 May 2008 12:20:34 +0000

There is a severe shortage of houses in Mumbai but, there is no dearth of government agencies wanting to build houses. The Mumbai Metropolitan Region Development Authority (MMRDA), which normally plans and executes infrastructure projects, has proposed to build 5 lakh houses in the Mumbai Metropolitan Region (MMR) over the next 5 years.Maharashtra Housing and Area Development Authority (MHADA) and Slum Rehabilitation Authority (SRA) are other agencies involved in similar activities.

Metropolitan commissioner Ratnakar Gaikwad declared on Friday that MMRDA now plans to offer rental houses of 160 square feet each. MMRDA plans to take up construction of 50000 houses this year itself. The rent for these houses will range between Rs 800 and Rs l500 per month. The rental housing plan has been announced under the Slum Prevention Program (SPP). He pointed out SPP was an improvement over the slum rehabilitation program as it is aimed at providing affordable rental housing to migrants.

Mr. Gaikwad further said that SPP is a mix of several existing or old slum improvement and housing schemes like the old chawls in the island city which took care of early migrants like mill workers, dock workers etc to the city. The proposed rental houses would come with an attached toilet block unlike the chawls. MMRDA has earmarked Rs 100 crore for SPP.

In Mumbai and its suburbs, SPP offers a significant business opportunity to builders as MMRDA plans to take the public-private partnership (PPP) option to build houses. But in the larger metropolitan region which runs much beyond Panvel, Badlapur and Vasai-Virar, Mr Gaikwad said the PPP option may not be feasible.

Mr Gaikwad further said “As in the case of infrastructure projects in Mumbai where project affected persons (PAPs) are rehabilitated by the developer on his own land in lieu of transferable development rights (TDR) for both land and construction, we will be offering TDR to the builder as an incentive to make rental housing stock available”.

Mr. Gaikwad said that in the metropolitan region, MMRDA will develop housing stock on its own. In return, the agency expects the state government to compensate by granting additional floor space index on the site itself. The metropolitan commissioner said the agency would sell the additional FSI at market rate to compensate for the rental housing programme. MMRDA has identified sites at Thane, Dombivli, Ulhasnagar, and Karjat and plans to start construction work on these sites in four to five months.

Underworld Interest In Real Estate

admin — Thu, 24 Apr 2008 08:44:36 +0000

Pune, April 23 With the recovery of documents pertaining to 241 real estate projects at different stages of construction in the city from gangster-turned-legislator Arun Gawli’s brother Vijay Ahir’s residence, the Mumbai Police Crime Branch is proactively making telephone calls to all builder whose project is among the 241. Crime Branch officials will inquire each builder whether he received any extortion threat.
“The documents pertain to 241 city projects which contain tenders to the (Slum Rehabilitation Authority) and the Maharashtra Housing and Area Development Authority (MHADA). We are calling up every builders concerned to ask them whether they were called to Dagdi Chawl or received extortion threats from Gawli or any of the other accused,” said Joint Commissioner of Police (Crime) Rakesh Maria.
Gawli, Ahir and six other accused have been arrested by Unit 3 of the Crime Branch for allegedly issuing extortion demands to a city builder. They have been booked for extortion, criminal conspiracy, intimidation and house trespass. “We are asking builders to come forward and lodge complaints if they have been threatened, and we are promising full security for them and their families if they do lodge complaints,” said Maria.
According to Maria, the Crime Branch has been keeping a close eye on the several SRA projects in the city, in order to collect intelligence on underworld interests in the realty sector.
The Crime Branch on Friday last also sent a letter to the Union Food and Civil Suppies Ministry after an identity card showing Ahir to be a member of a central government task force on food processing units in Maharashtra was recovered from his house.
“We have asked the Ministry to confirm if Ahir really is a member of the task force. Ahir has two prior criminal offences registered against him — an extortion case in 1993 and a preparation to commit dacoity case in 1999. If he is actually a member of the task force, we have asked the Ministry how he might have been appointed despite a criminal record,” said Maria.
The Crime Branch has also written to authorities at GT Hospital seeking explanation about conflicting opinions given by two doctors when Gawli was taken to hospital for a compulsory check-up after his arrest.
“When we took him to GT Hospital, he was complaining of dysentery and hypertension. While a doctor had cleared his check-up, another hospital doctor gave a conflicting medical opinion which could have affected police custody. We have informed the medical authorities about this,” said Maria.

Sharp Rise Is Possible In Mhada Flat Cost

rajani — Fri, 11 Jan 2008 07:30:17 +0000

The state housing board, Mhada decides to raise the rate of sale flats in its various projects by double. The main goal of Mhada was to provide housing at reasonable cost and now Madha puts forward the issue for increase the going rates of its flats by almost 90%. Earlier, flat price was fixed on the basis of 1992 state guide that considered the land acquisition cost and the construction cost for the structure for fixing the rate.

Data available with DNA exposes that a 485 sq ft LIG flat at Kannamwar Nagar in Vikhroli, which was earlier available at Rs. l, 350 per sq ft will now be sold at Rs2, 580 per sq ft. The percentage price hike in this case is 91%. This means a flat that could be bought at Rs. 6.54 lakh last year will now be priced at Rs. l2.51 lakh.

Similarly, a 652 sq ft flat at Pratiksha Nagar in Sion, earlier available at Rs ll.73 lakh (1,800 per sq ft) will now be sold at Rs21.51 lakh (Rs3, 300 per sq ft). The rates will first be implemented for 1884 flats to be put up for sale in January. Apart from Prateeksha Nagar and Kannamwar Nagar, other flats are located at Navghar in Mulund, Malvani in Malad, Patliputra Nagar in Oshiwara, Bimbisar Nagar in Gurgaon, Dindoshi and Tagorenagar in Vikhroli.

However, the opinion of Mhada officials is not in the favour of rise in the flat rates. They too think that this act will create an obstacle in the way to provide affordable housing for every income group.

Last available information is that the board’s vice-president Mr. T Chandrasekhar has ordered a meeting of senior Mhada officials to get their opinion.