Delayed realty projects in Mumbai ready for takeoff

Q: Good news for those whose bought property in Mumbai and stuck due to change in building regulation, construction begins in many projects that had been stuck for years.

Santosh TR,

10th July 2015

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Replies (3)

Hi everybody,
Developers in Mumbai always wanted to buy land and since they mostly did not get financing to buy land, they stretched themselves too thin. In a city like Mumbai known for its sky touching property and land prices, this became a big responsibility, when real estate firms, after having invested heavily, could not launch its projects due to a steady on approvals when development control regulations were amended or coastal regulations were changed.

Rajatrawal, Mumbai

10th July 2015

Comment

Absolutely right Rajat,
It was not just delays in approval. With many policy changes effected by successive governments, many developers, who bought these expensive land in 2008, had to stop work as they faced a cash crisis. As a result they have entered into alliances with other firms, which are now operating these projects towards launch.

Shaunak Verdla, Mumbai

10th July 2015

Right Shaunak,
Even Wadhwa Group has to face the same issue. Now they set to build luxury sea-facing residences on a piece of land at the unused Hindoostan Spinning and Weaving Mills in Mumbai's Prabhadevi. Hubtown Ltd and DLF Ltd had bought this land at the start from the Thackersey family for Rs.350 crore in 2007, just before the global financial crisis began. After the slow down DLF exit the project and Hubtown entrapped not only in the complex coastal regulation zone (CRZ) and other approvals but also money crisis.

Rajatrawal, Mumbai

10th July 2015

I heard that Rohan Lifescapes are expecting the commencement certificate in a fortnight, after which they will start construction. They are known for their design and quality of construction, so it would not be difficult for them to sell a project like this.

Shaunak Verdla, Mumbai

10th July 2015

Right Dhiraj,
For the time being the property market in Mumbai lost much of its shine and Rohan Lifespaces missed an opportunity to partner with Trump Organization USA Llc to build a Trump Tower on the site, an agreement between the two companies had signed in 2011. Now, Trump eventually partnered with Lodha Group to build the Trump Tower in Mumbai.

Shaunak Verdla, Mumbai

10th July 2015

Comment

In spite of the fact that the tough realty market of Mumbai, specially in the luxury segment where oversupply and weak demand are driving prices down. Now, the company is preparing to to get the project off the ground on his own.

Saran,

10th July 2015

It is also came to hear that the project is now a shorten version of the original grand version. Only 160000 sq.ft can be built now compared with 350000 sq-ft planned earlier by reason to a change in floor space index norms. And disappointment for developers because Mumbai has changed from being a seller's to a buyer's market.

Shaunak Verdla, Mumbai

10th July 2015

Right Shaunak,
And we have seen the buyers mood. Sales in south Mumbai are happening only if one gives a good discount but the Rohan Lifescapes want to hold on and sell only as much as the cash flows they need to keep constructing the project, until there is an improvement will see in sentiment.

Saran,

10th July 2015

7 years is really a long time and it feels even longer if officials play about with rules, like in the case of Rohan Lifescapes, results in several missed opportunities. But finally, approvals for realty firm Rohan Lifescapes residential project in south Mumbais Hughes Road has got green signal.

Saran,

10th July 2015

Comment

Good Morning Saran,
Yes, but the developer will have to face a lot of issue now as the property prices are about Rs.50000/sq-ft.have come in 7 yrs. after it first moved an application because of frequent changes in the building in Mumbai. norms

Dhiraj,

10th July 2015