Mumbai Property Market Sentiments to Improve in 2014
Real estate developers expect the Mumbai property market sentiments to improve in 2014. Depreciating rupee and increasing property prices deeply impacted the Mumbai real estate market as well as the consumer sentiments during 2013. However, the market sentiments are expected to improve during the second half of this year.
Expectations in 2014
In 2013, the industry faced labour issues, increasing raw material prices and a cautious approach by property buyers. In addition, there was a certain volatility in the Indian government. However, in 2014, the developers are hopeful that with the new government there will be a positive momentum in the residential real estate sector. Single window clearance can be expected which will speed up the process of approvals and reduce the demand-supply gap. There are also expectations of Goods and Services Tax (GST) which ensures a single taxation system for all goods and services throughout the country making tax compliance more effective.
Other factors that are expected to revive the market sentiments in 2014 include redevelopment and affordable housing, RBI’s indication of an improved economy and low lending rates for new loans from the banks.
Areas to watch out
There are certain areas in Mumbai that can expect maximum development during this year. Areas such as Wadala, Chembur, Chandivali and Navi Mumbai can be expected to generate the highest returns for investments over the next five years. This is primarily because of the job opportunities lifestyle change and infrastructure development. New infrastructure projects in these regions include Versova-Ghatkopar Metro line, the suburban and central rail connectivity, trans-harbour creek bridge and the upcoming Navi Mumbai International Airport.
Certain projects expected to be completed this year are Eastern Express Freeway, Santacruz-Chembur Link Road and the monorail. The year 2013 already saw real estate development around the impacted areas. With projects being completed and new projects planned, the year 2014 is expected to see more activity in these areas.
