The Maharashtra government recently approved the long-pending Mumbai Development Plan (DP) 2034. Likely to spur real estate activity in the city, the plan is also expected to pave the way for the development of much-needed affordable housing in the Mumbai Metropolitan Region (MMR).
“Overall, it is a very balanced and growth-oriented DP-DCR,” says Mayur Shah, Managing Director, Marathon Group and President CREDAI-MCHI.
He shared some insights about Mumbai’s real estate market in an exclusive interview with RoofandFloor. Here are the excerpts.
How is Mumbai’s realty market doing in the current scenario?
In terms of new launch supply, the city seems to be gradually getting back on track. Unlike in the past, developers are now focusing on launching projects in the affordable segment.
“With regulations like RERA in place, homebuyers who were earlier sceptical of taking the plunge are now more confident of investing in real estate.”
Mumbai has been leading the show in terms of RERA. What are your views on that? Has it impacted the consumer sentiments?
After initial apprehensions, at the end of the first year of RERA, we realised that RERA has been more beneficial for the sector than what it was earlier thought. It has, truly, been a game-changer for the sector. From the homebuyer’s perspective, we have witnessed higher confidence among buyers.
“The journey to RERA hasn’t been easy though.”
The immediate impact of RERA was felt on the sale of properties. Developers had little clarity on the authority while the buyers had little knowledge about the new Act. Thus, both the parties adopted a wait and watch mode for some time.
However, with time, developers in Maharashtra gradually adopted all the norms and listed their projects on the MahaRERA website.
What do you think about the recent Mumbai Development Plan?
The DP-DCR 2034 may have been delayed but presents a very progressive outlook.
The increase in basic Floor Space Index (FSI) for commercial development is a welcoming move. It will act as a catalyst for concerted commercial development in the city, thereby increasing employment opportunities.
Further, the state has also infused additional land parcel for development. Land that used to fall under the No Development Zone category, where the civic body can provide infrastructure, can now be utilised for the purpose of affordable housing as well as creating other amenities under the Special Development Zone.
However, we are hopeful that the state government would address the issue of high premiums for additional FSI. Overall, it is a very balanced and growth-oriented DP-DCR.
What are your expectations from the city’s real estate market in 2018?
The first quarter has been promising. Stable property prices and low-interest rates have resulted in increased demand for properties. We expect this phenomenon to continue throughout the year.
With stringent laws in place, in addition to transparency and professionalism in the sector, we are also expecting a higher inflow of foreign investments.
Tell us something about the Marathon’s Group recent projects. What segment are you targeting?
Currently, we are developing multiple projects in the affordable, affordable luxury, and premium segment.
At Dombivli and Kalyan Shil Road, we have our affordable projects (Marathon Nexworld and Marathon Nextown) that offer an array of amenities. We recently launched a project (Eminence) that provides compact homes in Mulund.
We are also targeting the premium segment. Our project, Monte South, in association with Adani Realty, offers premium residences with unique amenities like a private beach, Amazon-jungle-inspired landscape, and swimming pool.
Your advice for our readers.
Though it may sound like a cliché, this is the right time for investing in property.
The prices are stable now, interest rates are low, and the government has announced a series of schemes.
Additionally, developers are also offering attractive prices and discounts for homebuyers.