Mumbai builders to roll out 1,50,000 homes in next three years

The real estate market in Mumbai may witness a boost in housing stock as builders are set to roll out at least 1,50,000 homes over the coming three years. Consequently, the real estate prices could decrease, as per the experts. Last year, the Brihanmumbai Municipal Corporation (BMC) had halved the construction premium for one year creating a beeline of builders asking to benefit from the discount. Builders have paid a record premium to the tune of Rs 13,543 crore for the development of a 150 million sq ft area. As per the real estate research company Liases Foras, with an average size of 1,000 sq ft per house, 1,50,000 housing units can be developed on 150 million sq ft space. If these are to be rolled out in three years, an average of 50,000 houses will be issued per year. About 1.5 lakh homes will be added to Mumbai’s unsold inventory, which presently stands at 1,10,000 units. They will be inundated with record new launches and it will completely be a buyer’s market. Builders will be forced to decrease costs to sell their products, as per Pankaj Kapoor, managing director, Liases Foras. He told the media that an average of 20,000 new homes were rolled out yearly for years which will increase to at least 50,000. It implies that the city will get more than double the current supply of homes which will change the dynamics of this sector. Additionally, he said that the builders must roll out their projects as they have already paid the total premium amount. There is an interest cost linked to this premium amount which the builder had paid, and thus they cannot afford to delay their launches. They will be commencing their projects within the coming three years. Image Source Also read: Mumbai's property registrations witnesses robust momentum in Feb