QUICK FACTS

HT Estates - - HTESTATES -

Locked land: A sig­nif­i­cant chunk of Mum­bai’s se­verely re­stricted land is cur­rently locked in slums and di­lap­i­dated build­ings. This l and needs to be re­leased by offering vi­able in­cen­tives to in­ter­ested de­vel­op­ers. How­ever, the many at­tempts by the state gov­ern­ment to re­ha­bil­i­tate dwellers of such homes in the prime city cen­tres have met with very lim­ited suc­cess, ei­ther on ac­count of poor im­ple­men­ta­tion or be­cause slum dwellers can­not be brought to agree on what con­sti­tutes a good deal. Mum­bai is sur­rounded by wa­ter on three sides; as a con­se­quence the city has never seen cir­cu­lar de­vel­op­ment like other cities in In­dia. De­vel­op­ment, thus, has al­ways been lin­ear Dis­tance from prime south city cen­tres to the sub­urbs, cou­pled with lack of ro­bust in­fra­struc­ture con­nect­ing th­ese places has led to prices surg­ing in prime city cen­tres The gov­ern­ment has been in­creas­ing ready reckoner rates by 15-20%, a sig­nif­i­cant jump sub­urbs would con­test this - but those who can af­ford homes in the cen­tral lo­ca­tions would not.

In­dian de­vel­op­ers are con­stantly court­ing NRI and PIO in­vestors in their coun­tries, and many even have per­ma­nent of­fices there for this pur­pose. Of­ten, as much as half of their in­ven­tory is sold to such in­vestors even be­fore lo­cal bro­kers get wind of the launch.

Heavy in­ward mi­gra­tion: They now re­quire ad­di­tional homes be­cause nu­clear fam­i­lies are on the rise. For such in­hab­i­tants, the high property prices are not as big a de­ter­rent as they are for out­siders, given that they al­ready own property in Mum­bai and are well- en­trenched in their pro­fes­sions.

The pre­ferred route is to sell an apart­ment in a prime area and pur­chase two apart­ments in a rel­a­tively sub-prime area with some ad­di­tional in­vest­ments in or­der to ac­com­mo­date two f am­i­lies. In other words, in­her­ent de­mand from Mum­bai’s lo­cal in­hab­i­tants is al­ways ris­ing - and this nat­u­rally re­flects on property prices.

In short…

IS­TOCK

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.