BMC head clearing hundreds of building proposals at a fast pace, thousands of new housing options in projects by reputed developers will soon be offered within Mumbai city limits

A concrete bonanza awaits home seekers

With the BMC head clearing hundreds of building proposals at a fast pace, thousands of new housing options in projects by reputed developers will soon be offered within Mumbai city limits

Monsoon 2012 started off on a very slow note but the rains more than made up for the shortfall by August-September. This prompted a slew of jokes, the most popular one being that God must be a sales person, looking at how he managed to complete pending targets for an entire quarter within a couple of weeks by working overtime. The same pun has since then, been extended and adapted for real estate project clearances as well. The present commissioner of the Brihanmumbai Municipal Corporation, Sitaram Kunte, has been credited with similar abilities, considering how he managed to clear hundreds of pending files within a few short months. Gearing up So if you have seen a mysterious half smile on the face of property builders and buyers over the past month, there is a solid reason behind it. While project names and locations are still under wraps (to be unveiled post-Shradh), representatives of the developer community are making visible efforts to set the stage for mega launches once the festive season formally commences. Focus areas In fact, real estate experts and writers are being constantly consulted for their views on the best venue for announcing new projects in a grand manner befitting their stature. Obviously, most of the queries are from representatives of leading developers who have an established track record of projects. The locations that they tend to specialise in are prime areas of suburbs like Kandivali, Vile Parle, Mulund, as well as key sections of the island city wherever mill land or redevelopment projects open up land parcels. From luxury hotels to actual project sites, the venues under consideration vary depending on the budget and personality of the developers but one thing is clear – the number of new projects available within Mumbai will see a ‘high rise.’ Multiple benefits This is great news for those seeking a home within Mumbai for three reasons. The first cause for celebration is of course also the most obvious one. In a city starved of fresh housing options, the clearance of so many projects - reportedly in the range of 700 – will result in a substantial increase when it comes to new opportunities to choose from. The second reason to rejoice has to do with the laws of economics. As any high school or junior college student will happily explain, if demand goes up and supply remains constant, prices rise. If supply goes up in proportion to demand, the rates equalize at their previous level. And in the improbable situation where supply exceeds demand, prices actually decline. An infusion of 700 new projects would at least help reduce the overwhelming price rise. Further project clearances would then maybe help rates come down to the levels they were at in 2010-11 before new launches had come to a virtual standstill. The third factor putting a smile on people’s faces is that they no longer need to go beyond borders for a new home. Otherwise it was only the Mira Road-Virar belt along the western line, Thane, Kalyan-Dombivli-Karjat along the central line and Navi Mumbai on the harbour line where new project launches were taking place. Positive steps Last year Maharashtra Chamber of Housing Industry (MCHI) had actually postponed its property exhibition due to lack of new projects with clearances to display and developers had voiced the possibility of going on strike. Considering that, reports of 700 projects being cleared even though officially unconfirmed and to an extent, perhaps exaggerated, is definitely a far more positive sign. Affordability issues In fact, during the inaugural ceremony of the MCHI property exhibition 2011, the minister of state for housing Sachin Ahir had exhorted the developers to provide homes at affordable prices. Responding to this statement, Boman Irani, secretary, MCHI, had politely pointed out that the delays in project clearances had created a supply scarcity situation. The best way to bring down prices and make homes more ‘affordable,’ he suggested, would be to accelerate the process of clearing new housing project applications. In an industry that runs, walks or crawls based on the highly volatile and unpredictable aspect termed as ‘buyer sentiment’ it is almost as if Lord Ganesha, the ‘Vighnaharta’ has removed the obstacles for new home seekers. Preferred locations The wish list of those who want to buy a home within Mumbai limits is fairly straightforward. Media professional Vinit Mehta is anxiously looking for new launches in the Malad-Goregaon belt, because that is where he resides at present. “The social infrastructure here is well developed; there are many malls, connectivity is also quite good. Its a good place to settle down and raise a family.” The Andheri-Bandra zone is considered to be a prime area and the business community is eying projects coming up there. Milind Agte, who has been a Khar resident since childhood, wants to move into a larger house to accommodate his growing family. “Once you have lived here, it is difficult to consider any other location,” he feels. Mulund, Ghatkopar and Chembur are preferred locations in the central suburbs. Redevelopment is expected to play a key role in driving new developments and opening up luxury home options in once congested localities. Vikhroli resident Sameer Walkar is looking forward to these areas being transformed as it not only ensures an influx of new residents but also raises the realty values. “The new buildings that come up in place of old ones have larger flats, good amenities and ample parking space. The quality of residents also improves with 3BHK apartments being available where once only 1BHK flats were the norm. Hopefully some of the clearances will be for redevelopment projects also,” he wishfully shares. With the departing rain showers making up for the remaining seasonal quota all through this week, home seekers are hoping that the municipal commissioner will also be equally benevolent and give his nod to a few hundred more projects. This would really facilitate attempts to rectify the demand-supply imbalance that currently exists within Mumbai limits to a large extent and provide a concrete bonanza for new buyers.