A sign of bet­ter things to come?

The re­cent pos­i­tive ac­tiv­ity in Mum­bai’s pre­mium res­i­den­tial mar­ket could be in­dica­tive of a mar­ket re­vival across the coun­try

HT Estates - - FRONT PAGE - Van­dana Ram­nani

When some prom­i­nent de­vel­op­ers in Mum­bai re­cently an­nounced the launch of new res­i­den­tial projects, they were i n for a pleas­ant sur­prise with the re­sponse they re­ceived. Home­buy­ers were sur­pris­ingly more open to clos­ing deals after months of in­ac­tiv­ity. While this has cer­tainly set a trend of sorts and cre­ated rip­ples in the Mum­bai res­i­den­tial mar­ket, it re­mains to be seen if there will be rep­e­ti­tion of the same in the Delhi-NCR and other realty mar­kets.

The flurry of ac­tiv­ity in Mum­bai in­cluded Go­drej Proper t i es Ltd sell­ing 300 apart­ments within a week at its flag­ship pro­ject, The Trees, in Vikhroli. The pro­ject is a 34-acre mixed-use de­vel­op­ment pro­ject. The first phase of the

pre­mium res­i­den­tial com­po­nent of the pro­ject has 374 apart­ments, of which the com­pany claims to have sold over 80% in the first week of the launch. The apart­ments in­clude 450 sq ft one-bed­room apart­ments and 2,400 sq ft pent­houses. Prices start from ₹ 1.7 crore and pent­houses cost ₹ 8 crore.

Prior to this the Lodha Group had launched lim­ited edi­tion res­i­dences at World One in Lower Parel and an­other pro­ject in south Mum­bai’s Al­ta­mount Road where 415 apart­ments were re­port­edly sold. Oberoi Realty also claimed to have sold over 500 units dur­ing the launch of their Bori­vali pro­ject.

Given buyer i nter­est i n Mum­bai, one would cer­tainly be in­ter­ested in see­ing if Delhi fol­lows Mum­bai’s lead and if some ac­tiv­ity is seen in its mar­kets.

Real es­tate ex­perts say that there has been a 30% jump in the num­ber of res­i­den­tial sales in the coun­try com­pared to the fes­tive sea­son last year, a clear in­di­ca­tion that the res­i­den­tial mar­ket is look­ing up. Mum­bai has started to lead the re­cov­ery process. In terms of sen­ti­ment too, there has been a marked change in the Mum­bai mar­ket and if it is able to sus­tain the re­cov­ery process for the next five to six months, it will set a bench­mark for other real es­tate mar­kets in the coun­try.

“Post the fes­tive sea­son, the sen­ti­ment has been pos­i­tive and buy­ers are will­ing to close deals. If the trend in Mum­bai con­tin­ues for the next six to 12 months, Delhi-NCR may start re­act­ing pos­i­tively and see a turn­around in the next five to six months but much of the off­take will be in the af­ford­able hous­ing seg­ment,” says Mu­das­sir Zaidi, na­tional director, res­i­den­tial agency, Knight Frank In­dia.

Agrees Ge­tam­ber Anand, pres­i­dent, con­fed­er­a­tion of real es­tate de­vel­op­ers as­so­ci­a­tions of In­dia (Credai). “There is def­i­nitely a change in the mood. Hous­ing sales have im­proved by 15% dur­ing the fes­tive sea­son helped by fall in price and lower in­ter­est rate on home loans. The launches in Mum­bai are pri­mar­ily new launches. The sup­ply in Delhi-NCR is much more and hence there may be too few new launches. But there is still pent up de­mand for prod­ucts in the af­ford­able range. ”

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