Mumbai To Witness An Array Of New Project Launches And Deliveries In 2014
Mumbai is expected to witness a wave of residential project launches in 2014. Though the year 2013 was all about clearing the existing inventory, the residential real estate market is more positive about new launches next year.
Testing year for developers
Mumbai saw a drop in launch of residential projects in the year 2013, mainly due to economic slump and inflationary conditions. Slow take-off of several under-construction projects and high borrowing costs had created liquidity constraints for developers. This also had resulted in a huge inventory pile-up as much as up to 58 months of inventory. Hence, developers focused on clearing the inventory pile-up this year. Out of the total new projects launched this year, less than 10% were delivered.
However, developers are positive that more than 20% of the remaining launches will be delivered in 2014. Thane and Navi Mumbai too saw limited deliveries of 13% and 22% respectively in 2013, while both are expecting about 40% of the remaining launches to be delivered in 2014.
Fresh residential launches in Mumbai
The year 2014 will be witnessing ample new project launches. There are currently many under-construction projects that will be complete and ready for launch by 2014. Developers with large land parcels are looking at launching new buildings in a phased manner in their existing projects. There are also other projects that were deferred for the last couple of years. Many of these projects were awaiting approval of building plans by the BMC, which got delayed. The year 2013 saw several building plans being approved, which will lead to these projects being launched in 2014.
Apart from these scheduled project launches, the Central government as well as the Reserve Bank of India (RBI) are taking steps to bring stability to the market. This is expected to help improve customer sentiments. The down market in 2013 also brought some stability in property prices in several areas. Stable prices coupled with an array of new launches will help many buyers negotiate prices and make informed decisions in 2014.
