Delhi, Bengaluru Listed developers Launching Projects In Mumbai

Several listed developers are planning to enter Mumbai’s housing market, taking advantage of the market sentiment, which, during COVID-19 times, favours grade 1 branded players with a track record of execution. The Maharashtra government’s decision to cut the premium

BY Realty Plus
Published - Thursday, 25 Mar, 2021

Delhi, Bengaluru Listed developers Launching Projects In Mumbai

Several listed developers are planning to enter Mumbai’s housing market, taking advantage of the market sentiment, which, during COVID-19 times, favours grade 1 branded players with a track record of execution. The Maharashtra government’s decision to cut the premium on real-estate projects by half till December 31, 2021, is also luring builders. Delhi-based real estate major DLF and Bengaluru-based Puravankara and Prestige Estates are an example. Puravankara is planning to launch a project in Chembur soon. It’s an ultra-luxury property that comes under their World Home Collection (uber luxury properties segment), and the prices reflect that, local brokers added. Prestige Estates is planning to launch a project in Byculla, followed by Mulund. DLF is planning to launch a project for sale in South Mumbai’s Tardeo area, where it has completed about 50 percent of the project it undertook several years ago under the Slum Rehabilitation Authority (SRA) scheme. Under an SRA project, a company is entitled to construct buildings for sale after completing its slum rehabilitation project portion. Depending on the percentage of the slum project completed, it can construct buildings. That ensures two things – there is an investment by the builders and the slums are removed. Depending on the percentage set by the Municipal Corporation of Greater Mumbai (MCGM), the developer can construct 20-25 percent of the building for sale. Under the SRA scheme, slum-dwellers get houses free of cost but they cannot sell or rent units. As per SRA rules, pre-2011 slums are eligible for rehabilitation. The SRA scheme is driven by offering high floor space index to builders as a sop. Maharashtra government’s decision to halve the premium on real-estate projects is a great opportunity. There will be an attempt by every developer in Mumbai to launch projects within a year now.