Real Estate Market 2014 - An Overview for Mumbai
Indian real estate market, no doubt witnesses the slowdown in year 2013, however, this year was an eventful one for the sector too. The developments like the introduction of the Real Estate Regulatory Bill and the Land Acquisition Bill in the parliament has given a hope that there will be a positive move in market in 2014, as compared to the previous year. It is being expected that Indian real estate market in 2014 will gain the much required stability and transparency in the property market. Mumbai real estate market is also expecting to witness stability and healty market trends in year 2014. There is high optimism for property market, about the coming year – 2014. So many long awaited projects will be launched in Year 2014, as almost after 2 years, BMC has sanctioned the pending plans. This will help the realty market to pick up considerable pace in the year ahead. With the new launches hitting the real estate market in 2014, we can expect an improvement in customer sentiments. However rising cost of materials, labour and cost of funding can result in rise in property prices. The micro markets of Mumbai property market are fragmented one and behave quite differently in individual ways. For instance, property market of city is witnessing high demand in 4-5 BHK luxurious apartments, ranging in 1-5 Cr., on the other hand, in the outskirts, 2 to 3 BHK units are more in demand. Lately, there has been a steady supply of high end luxurious properties in the Mumbai market, however the mid budget flats have been kind of low in terms of supply. Affordable housing is in demand in Mumbai, but due to high land prices it cannot be met. All-round reforms from the government is being expected, especially administrative, land, fiscal, tax and banking reforms that will boost growth and help in reduction of prices. The govt. is making its effort but considering the scenario of demand in market, its not enough. The govt. should make efforts to make the market make it financially viable for developers to undertake such projects where the demand is phenomenal. Well what the govt. will do the boost the market is still a speculation, however we still have a hope that the new reforms will give a new face to the indian property market in 2014.