Real estate sector slowdown : New development projects in Mumbai dip by 36 per cent
Mumbai city news: The number of new launches in January-June, 2017, dipped to 15,763 units compared to 24,450 during the same period last year.Updated: Jul 06, 2017 10:07 IST
The real estate sector continues to languish as the number of new launches in the first six months of 2017 reduced by 36 % compared to last year during the same period in the Mumbai Metropolitan Region (MMR).
The number of new launches in January-June, 2017, dipped to 15,763 units compared to 24,450 during the same period last year. The sales also came down to 32,077 compared to 34.971 during the same period last year.
According to experts, the reasons include demonetisation, the RERA (Real Estate (Regulation and Development) Act, the high court’s stay on approvals, lack of clarity on Development Plan (DP) and lakhs of unsold inventory saddled with the builders.
According to real estate consultancy firm Knight Frank India, new launches and sales have dipped this year. “The first two months witnessed the effects of demonetisation and after that, RERA compliance deterred builders from marketing their projects,” said Samantak Das, chief economist and National Director-Research-Knight Frank.
The MMR covers Mumbai, Navi Mumbai, Thane and Raigad regions.
Another problem is the Bombay high court’s embargo on new constructions until the Brihanmumbai Municipal Corporation (BMC) makes dumping grounds in compliance with the pollution norms.
According to builders, the past six months were a watershed for the realty sector. “How can we apply for approvals if the DP is still pending and we will not get permissions due to the stay order,” said Shadaab Patel, chairman and managing director, Platinum Constructions. “There are still hurdles plaguing this sector and they need to be redressed urgently,” he said.
Currently, the realty sector is going through a tough phase and sales are mainly taking place only in the affordable segment within the budget of Rs50 lakh and that too only on the outskirts of Mumbai.