Factors Affecting Mumbai Real Estate Market in 2014
The year 2013 was a dull year for the Mumbai real estate market with reduced project launches and low sales. However, real estate market players are hopeful that 2014 will be better. But, this largely depends on several factors that either support the market or oppose it. Find below some key factors that will impact the Mumbai real estate market this year.
Kay Factors
1. Builders stick to their project timelines and adhere to the market legalities. The builders must follow the Brihanmumbai Municipal Corporation (BMC) approved building plans. In addition, they must also obtain the necessary approvals such as commencement certificate (CC) and occupation certificate (OC).
2. Builders must refrain from diverting funds from incoming sale revenues of under-construction projects to other projects. This will ensure timely completion and delivery of the particular project to the buyer.
3. Builders should avoid launching any new projects till their existing inventory is cleared.
4. Builders must also correct the existing property prices and make it more realistic rather than elevating property prices according to their whims. This will make residential units slightly affordable to the middle-class buyers.
5. The general elections in 2014 will play an important role in the realty sector. The new government will be in a position to decide how to support the builders’ lobby in terms of relaxation of norms related to floor space index (FSI) and Coastal Regulation Zone (CRZ).
6. The government must adhere to total transparency in forming business policies. It must encourage growth in exports to support rupee value appreciation. This, in turn, will not only help individual businesses but also help business houses in general to grow further. As a result, people will have sufficient funds to support their property investments.
7. The government should support foreign institutional investors to invest in business activities here. This will help the stock market players, eventually resulting in increased funds available for real estate investment.
8. Several buyers made wrong investments over the last couple of years. Thus, people should learn to make informed decisions before buying a house. Investors should have realistic ROI expectations derived after logical calculations and proper study of the market.
