City Beat: Property Absorption In Mumbai Grows In Q2 [Video]
Due to highly expensive property, Mumbai real estate did not see much activity in the recent past. However, this might be changing. According to a PropTiger DataLabs report for the second quarter of the financial year 2016-17, Mumbai, Pune and Bengaluru contributed nearly 58 per cent to the total absorption across nine major cities of the country. The Maximum City added the highest to sales, accounting for 21 per cent of total sales during the September quarter. However, new launches saw a dip of 31 per cent over the previous quarter. Property prices in the city on the other hand saw an annual increase of three per cent.
Meanwhile, the Maharashtra state government has signed an agreement with the Canadian government to carry out urban infrastructure development. According to a report published on ETRealty, the "action plan seeks to introduce companies, solutions and financing from the North American country for urban development and implementation of state-led infrastructure projects". Maharashtra Chief Minister Devendra Fadnavis told media that the state was planning to implement a joint action plan and target areas for collaboration would include affordable housing and urban infrastructure. This would include smart cities, project financing, training and skills development. Under the plan, private companies of Canada will partner with corporates in Maharashtra to develop infrastructure. The state will greatly benefit while it develops smart cities.
In another development, global players such as TPG Capital, Temasek, CPP Investment Board and Fairfax Financial Holdings are vying to acquire as much as 49 per cent stake in Mumbai's airport. The Chhatrapati Shivaji International Airport in Mumbai is operator by the GVK Group. Earlier this year, the group sold a 33 per cent stake in Bengaluru Airport to Fairfax for Rs 2,200 crore.