Mumbai's Shanghai dreams broken

Q: Can anyone tell me what are the reason for breaking of the Mumbai's Shanghai Dreams?

Bulbul Verma,

13th May 2015

Real estate News in Mumbai

real estate

real estate mumbai

fsi

floor space index

infrastructure development

housing for all by 2022

liases foras

mumbai shanghai dreams

higher fsi in mumbai

investment in public transportation

mckinsey & co.

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Replies (6)

As per the date, private-equity property funds disclosed 64 investments last year in India, of which 54 had a value of $2 billion. The number of transactions was 14% higher than the 56 investments with 52 disclosed deals valued at $1.86 billion in 2013.

Don't forget that some policy change or other every year and each has a big impact on the pace of development.

Rajiv Bajaj, Pune

17th May 2015

Comment

I appreciate your thoughts Abhi,
The delay is possible to push the real estate sector into more disorder because even private-equity deals to finance projects in Mumbai are likely to get trapped due to the lack of clarity over the development plan.

Ravi Waghmare, Mumbai

16th May 2015

Comment

As per the Boman Irani, chairman and managing director of Mumbai-based developer Rustomjee Group, the next 6 to 8 months are going to be very painful for everybody as the buyers of mumbai which is not sure which way to go, what centers they should invest in or live in.

Abhinandsavalla, Mumbai

15th May 2015

Comment

Right Abhinands,
In this way there will some policy change or other every year and each will leave a big impact on the pace of development.

Suresh,

15th May 2015

Almost seven months back a bilateral agreement which has been signed between Mumbai mayor and her counterpart in Shanghai. They saw a dream of Mumbai to be Shangais sister city and that time experts keep their view that it is positive sign for Mumbai but most important is that if the infrastructure change will be made as per Shanghai standard.

Dwarkesh,

14th May 2015

Comment

Right Dwarkesh,
That time while Shanghai has FSI as high as 11 whereas in Mumbai it was 4 FSI. So, it is important that these issues should be addressed to call the two cities sister city in true sense.There are many sister cities but what is important is that the investment for infrastructure actually flows in.

Dhiraj,

14th May 2015

I appreciate your thoughts Dhiraj,
It is a good thing that the government has asked to redraw the suggested Development Plan that was not connected to ground realities. This may slow a small part of real estate developments for some time, but it makes sense to wait for a better development plan that addresses all needs of the city.

Dwarkesh,

14th May 2015

Secondly, it may help city's clear unsold inventory to some level. It is a good news for the home buyers that the prices in the city declined 2% to Rs.12835/sq-ft last quarter from the earlier three-month period, according to data from property research firm Liases Foras. Unsold homes totaled 192.3 million square feet, which will take 46 months to be sold at the current pace of sales.

Dhiraj,

14th May 2015

Hey Ravi and Abhi,
Don't forget that Higher FSI is also playing major role in project delay. The Municipal Corporation of Greater Mumbai had proposed in February to increase the Floor Space Index to range between 2 and 8, compared with an earlier cap of 1.33. The FSI determines the maximum floor area allowed in a building comparable to the land. A higher number means more apartments can be built on a piece of land.

Chintakpujara, Mumbai

13th May 2015

Comment

Even i think that redevelopment projects could come to a total halt until clarity comes out. As it came in for criticism from non-government organizations and political parties over the increase in FSI, the opening up of no-development zones for residential development, and factual mistakes in existing land use.

Suresh,

13th May 2015

Right Suresh,
The delay is probably to push the real estate sector into further disarray because even private-equity deals to finance projects in Mumbai are likely to get trapped owing to the lack of clarity over the development plan.

Dhiraj,

15th May 2015

Hi Bulbul,
I think, due to the uncertainty in the development plan, the authorities stopped giving any approvals, and we had to hold back on some launches behind it. It is very unfortunate to see these delays.

Abhinandsavalla, Mumbai

13th May 2015

Comment

Right Avi,
2 months after announcing a proposal to relieve the city's 24 yrs old Floor Space Index rules to accommodate taller buildings, the local administration discarded the plan, leaving developers in a uncertainty.

Ravi Waghmare, Mumbai

13th May 2015

It is clearly indicates that the people have to wait 2 more years for a new set of rules to be prepared. The island-city, which has little space available for development, is counting on rising up and down to help increase supply and relieve prices that have kept housing over and above the reach of most of its 19 million residents.

Abhinandsavalla, Mumbai

13th May 2015

I think this will create a major issue for Prime Minister Narendra Modi's "Housing for All" plan that looks for remove urban slums across India. Everyday it comes to know that due to the uncertainty in the development plan, the authorities stopped giving any approvals.

Ravi Waghmare, Mumbai

13th May 2015