Supreme Court Lifts Construction Ban in Mumbai will help development momentum in the city

In a welcome relief to the real estate community, the Supreme Court has lifted the stay on the construction of new buildings after three-long years. The ruling will positively affect an estimated 500 projects and is an encouraging sign as it will clear way for developments across the city. This will ease a lot of pressure on the developer community and aid homebuyers, as a considerable amount of new supply will open up. Presently, the ban has been lifted only for six months, and under the condition that the new construction debris can be disposed at alternate locations. The construction in the stalled projects will be allowed to resume under supervision by the BMC after taking onto account clearances for waste disposal and pollution control. For the sector, which has been through a lot of regulatory changes, it is a long-awaited move for developers and realtors. For buyers, it is a welcome decree. Though the ban was not applicable to MHADA buildings, dilapidated buildings, slums, hospitals or educational institutes, it did ban redevelopment or construction of tenanted properties, leading to a shortage in supply. This will accelerate development of stalled projects and induce early completion of projects. It will also open up options for end users purchase in the market.  The ruling will allow us to see added growth in both the residential as well as commercial property markets. It will further ensure that the latent demand for residential properties is met. Commercial space will also see a boost, as multiple projects awaiting clearance will be allowed to resume construction. Going forward we will see an acceleration in construction of office space especially in high demand locations of Bandra-Kurla Complex and Lower Parel. About the Author: Ramesh Nair is CEO and Country Head at JLL India.