Mumbai Property Market Looks Forward To PM's Vision of Housing For All
The initiative of PM Narendra Modi "Housing for All by 2022" is proving to be a booster dose for real estate industry players, especially in Mumbai and MMR who envision to provide a home to every Mumbaikar. To add
to this, the interest subvention scheme in home loans taken for buying affordable homes which was announced in this budget, opened doors for many middle-class aspirant homebuyers.
In the first 9 months of 2017, the affordable housing sector has witnessed a surge of over 27 per cent in new units launched in the top eight cities in India. Mumbai witnessed the highest number of launches at over 19,400 new residential
units till September 2017. Out of the total launches in Mumbai, affordable housing sector had a share of close to 10,000 units registering a rise of 300 per cent over the same time last year.
This year two major developments impacted real-estate sector, that is, Real Estate Regulatory Authority or RERA and the Goods and Services Tax or GST. The preparedness of the industry was palpable with a number of RERA registrations taking place in Mumbai and MMR, thus leading the industry towards transparency and organisation. This further boosted the confidence of homebuyers who were swinging in a dilemma whether to be or not to be, a homebuyer. The enhanced confidence resulted in many enquiries for the right kind of properties in Mumbai, which witnessed good traction during the current festive season.
As expressed by Mayur Shah, President, CREDAI - MCHI, "The market is looking up with the positive festive season when developers are receiving a good number of enquiries. There is festive mood in the market, thus demand is picking up starting the Diwali season. If things go the way sales is picking up, we may even reach our peak in another six months. The focus being on affordable housing, we aim to work towards providing a home for every Mumbaikar besides making Mumbai a world-class city with our Clean and Green City initiative."
India's enviable feat in World Bank's ranking to 100th position from 130 in Ease of Doing Business is also notable. The stellar role played by Hon'ble CM Shri Devendra Fadnavis has made Maharashtra contributing towards this remarkable feat of the country. During January-September 2017, the supply of affordable homes increased to 26,081 from 20,485 houses in the corresponding period last year. Among these new launches, almost 40 percent of affordable housing projects were launched in Mumbai, followed by Kolkata and Pune.
We need to acknowledge that the real estate sector is one of the most globally recognised sectors. In India, real estate is the second largest employer after agriculture and is slated to grow by 30 percent over the next decade. The Indian real estate market is expected to touch US$ 180 billion by 2020.
The housing sector alone contributes approx. 8 per cent of the country's Gross Domestic Product (GDP). In the period FY 2008-2020, the market size of this sector is expected to increase at a Compound Annual Growth Rate (CAGR) of 11.2 per
cent. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs.
The real estate sector comprises of four sub-sectors - housing, retail, hospitality, and commercial. The growth of this sector is complemented by the growth of the corporate environment and the demand for office space as well as urban
and semi-urban accommodations. The construction industry ranks
third among the 14 major sectors in terms of direct, indirect
and induced effects in all sectors of the economy.
The government's decision to include the middle-income group category in the flagship Pradhan Mantri Awas Yojana (PMAY), or housing-for-all scheme, would change the market dynamics. Under CLSS, NHB has already disbursed over 1,000 crore till date. Under PMAY, government has so far sanctioned projects worth over Rs 25,000 crore which works out to over million homes.
Looking at the figures, real-estate industry is a huge opportunity for India and developers across are putting their might to make this "miracle" happen.
With inputs from Housing News