How Authorities Can Make Property In Mumbai Affordable

How Authorities Can Make Property In Mumbai Affordable

How Authorities Can Make Property In Mumbai Affordable
Property in Mumbai is among the most expensive in the world. (Wikimedia)

In the past two years, property prices in Mumbai have largely not appreciated. One of the most expensive in the world, real estate in Mumbai has been subject to a rising inventory, and this is partly the reason why property rates have remained contained. However, real estate in Mumbai has yet to go a long way before it actually becomes affordable for a common man.

How can that be achieved?

By making available developable land

The developer community is of the view that the key reason behind expensive properties in Mumbai is land scarcity. According to them, releasing large vacant plots which lie barren in various part of the city can serve be instrumental in real estate developments, in turn making housing more affordable. Apart from releasing land, relaxation of the Coastal Regulation Zone (CRZ) norms is another way, which can be instrumental in making available more land for housing development. Recently, the Mumbai Port Trust has announced that it will release land for infrastructure development. The Central government has also pledged 1,800-acre land of the body for real estate developments.

By speeding up projects delays

Maharashtra is in the process of starting an online approval system for building clearance to fast track projects. This will speed up the process and will bring down project costs. Developers spending less on projects would mean lower property prices for home buyers, too. Also, when the Real Estate (Regulation and Development) Act, 2016 comes into force, it will bring more transparency into the sector.

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By easing pressure on existing infra

Home buyers want to live closer to the city centre, as traveling in Mumbai is not an easy process. This has been a reason why there has been an undue pressure on the existing infrastructure. Not many are ready to book homes in "affordable" suburbs. This is also a reason why all the property price fall is largely artificial. By improving infrastructure in suburbs, property prices can be brought down.

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