The results of the elections in Maharashtra, according to prominent real estate leaders, might have a big impact on the Mumbai real estate market. Industry veterans told NDTV Profit that alignment between the federal and state governments, along with stability in governance, may improve infrastructure development, expedite approvals, and solve affordability issues.
According to Anuj Puri, Chairman of Anarock Group, “Project clearance will be easier, policies for the next five years will be consistent, and infrastructure like roads and connectivity can expand if there is stability.” He also added that an aligned administration will speed up these procedures even more.
Project launches present difficulties for the Mumbai Metropolitan Region real estate market, despite strong demand. The inability to start new projects because of approval delays is the main problem, not demand. Prices will continue to rise if supply doesn’t grow, according to Puri, who noted that unsold inventory is at an all-time low.
According to Boman Irani, Chairman and Managing Director of Keystone Realtors, the government’s dedication to slum redevelopment and expedited permits are both beneficial developments for the industry. “The government’s focus on a Mumbai free of slums is a great step forward, and the redevelopment sector has immense potential,” he said.
Dhaval Ajmera, Director of Ajmera Realty & Infra India Ltd., discussed the necessity to rethink the criteria used to determine affordable homes. He noted that, with a maximum of Rs 45 lakh, the government now classifies affordable homes based on both price and size.
However, this dual criterion leaves out a large number of possible apartments in a place like Mumbai, where costs are much higher. According to Ajmera, concentrating only on size—for example, apartments up to 600 square feet—could make 60–70% of apartments fall into the inexpensive range. “We could drastically change the market by eliminating the price cap and determining affordability solely by size,” he stated.
With neighbourhoods like Bandra Kurla Complex, Lower Parel, Andheri, and Thane becoming hotspots, commercial real estate is also becoming more popular. According to Irani, Ajmera Realty and Keystone Realtors are working together on business ventures, such as a significant Bandra development.
However, growing expenses and expensive government premiums continue to put pressure on profitability. “To maintain price stability, we’re hoping for a rationalisation of premiums and a reduction in stamp duty,” he stated, noting that the industry might experience a 5–10% decline in profits.
Source: NDTV Profit
