Mumbai realty check: SC construction ban to hit developers, buyers
Experts said it would be difficult to quantify the number of projects that would be impacted, but mainly those in Mumbai, Navi Mumbai and Pune would be affected.Updated: Sep 02, 2018 01:43 IST
As the Supreme Court ordered a blanket ban on construction activities across Maharashtra, real estate experts and developers said the ban would have a significant impact on the industry.
Experts said the realty market has been gradually picking up after the roll-out of the Goods and Services Tax (GST) and formation of the Maharashtra Real Estate Regulatory Authority (MahaRERA), and this ban would create uncertainty. They said unless the state’s intervention in the SC was successful, home buyers will be affected as supply will be delayed. Dr Sumantak Das, chief economist and head of research, JLL India, said the order is a setback, especially for Mumbai as it is a realty hub. Das said new launches were not happening for the past three to four years owing to “over supply” of housing stock and compliance to new regulations. “The 2016 ban had added to the woes. A similar thing will happen now. The market value was picking up, and if the supply side is restricted by the ban, it will be a tremendous setback.” One of the biggest factors for sustainable development is a solid waste management plan, said Das. “Authorities should be quick enough to impress upon the SC the steps they will take to set up a holistic plan.”
Experts said it would be difficult to quantify the number of projects that would be impacted, but mainly those in Mumbai, Navi Mumbai and Pune would be affected. Dr Niranjan Hiranandani, president (national), National Real Estate Development Council said, “The SC’s intention is good, but a blanket ban will have a negative impact on housing. Perhaps, it would have been better if the SC would have penalised the state and barred only new construction, while allowing ongoing ones.’’
However, Nayan Shah, president of Maharashtra Chamber of Housing Industry (MCHI) was optimistic that the ban would be lifted soon. “This has happened because of an administration glitch, so once the state files an affidavit, the ban should be lifted. The state has drafted solid waste management plans and Mumbai definitely has a clear plan.’’
First Published: Sep 02, 2018 01:42 IST