Real Estate in Mumbai lures developers from other cities
Developers from small cities are eying on the real estate sector of Mumbai. Mumbai real estate has been rising in recent times, though it is known as one of the toughest property markets owing to difficult building regulations, shortage of land and high prices.
Builders from Kolkata, Pune and Bangalore are entering into Mumbai real estate thinking that they can also gain high profit margins if the state government clarifies the development control regulations (DCR) for Mumbai.
Salarpuria Sattva Group, one of the prime developers based in Bangalore, is now exploring opportunities in Mumbai. The group has residential and office properties in Bangalore and Kolkata.
The group is in talks with land owners and developers to develop two-three projects in Mumbai. Also, redevelopment projects with suitable partners are on the list.
Another real estate group, Provident Housing Ltd, which has apartments in Bangalore, Chennai and Mangalore, is also looking for opportunities in suburban Mumbai.
The trend which has been witnessed by experts of developers venturing into Mumbai real estate sector shows that there is a rise in ambition to expand geographically and also a saturation in their home markets requiring them to explore larger cities.
But there are some developers like Delhi based DLF and Unitech who find Mumbai market tough to crack and had to exit most of their projects in the city after the slowdown of 2008.
As per Jones Lang La Salle, any developer who has a presence in Mumbai real estate, automatically creates a national presence for him.
But existing developers are struggling with slow sales even as prices refuse to come down. An apartment in Mira Road is sold at Rs 8000 per sq ft. Also, cost of project development in Mumbai is double than any other city in the country.
Tier III cities such as Bhubaneshwar and Jamshedpur don’t add much to the portfolios of the builders as the infrastructure is not organised.
As per research agency Liases Foras, around 10.30 million sq ft of sales was seen in the Mumbai Metropolitan Region (MMR) in the December quarter at an average price of Rs 11295 a sq ft. Mumbai’s real estate inventory, or unsold stock, is high at 144 million sq ft, second only to the National Capital Region’s 283 million sq ft.
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Apartments in Bangalore, DCR, Development Control Regulations, DLF, Jones Lang La Salle, Liases Foras, Mumbai, Mumbai real estate, Projects in Mumbai, Provident Housing Ltd, Real estate in Mumbai, Salarpuria Sattva Group, Unitech
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