South Mumbai properties likely to see a boost
Bangalore- One of India’s most expensive real estate destinations, South Mumbai is expected to see a revival this year after a long gap of one year.
The key reason for the boost in the realty sector in this region is due to the fact that the developers are all set to launch their projects alongside resurrecting their stalled constructions believing that there will be an increased demand.
In the past few years, Mumbai has been contributing in higher property prices, moderate sales, fewer launches and slower project approvals resulting in a crippled property market in South Mumbai.
After a long period of sluggishness, Mumbai registration data has boosted with a positive growth of about 42 percent per month which has in turn resulted in the impact of the festive season. In the past 24 months, the sales registration was the highest in December. The increase in sales were mainly from the suburban Mumbai with an increased percentage of 51 percent. However, South Mumbai sales declined by one percent which was a result of stressed affordability.
Perhaps, this long followed trend might change this year as per many developers and property analysts. Currently South Mumbai has a price reduction of about 5-15 percent in the past 18 months due to the slower sales in the luxury segment.
One of the popular developers in South Mumbai are planning to launch 40 luxury residences in Nepean Sea Road within a months time. The property will be converted from a sea-facing bungalow which it bought in 2011 and was converted into a residential tower. The price for this segment is estimated to be from Rs. 25 crore to Rs. 35-40 crore.
The developer feels that this is the apt time to launch its project due to the positive market and increased demand for new launches. There are various developers and landowners who are mainly negotiating on old buildings and plots which are both negotiable for open redevelopment opportunities.
According to a realty expert, most developers are still investing a huge sum to acquire properties or land which can be redeveloped. Perhaps there are some unfavorable factors like the building and environment approvals along with financial health of the developers creating their impact on the projects.
Another popular developer in South Mumbai is launching its projects after a long period at Rs.70,000-80,000 a sq. ft. The same developer is likely to launch other units priced at Rs. 75-80 crore each within few months. Although there have been a boost in the sector, the property pricing and project formats will play a major role in sales especially in developments on Altamount Road and Carmicheal Road.
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