Builders are ignoring realty market downturn with more proposal this year

Q: This is quite a change from last year when the BMC received 989 building proposals between April 2014 and March 2015.

Suresh,

7th December 2015

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Replies (2)

Hi all,
It is totally opposite of expectations that the delay in corrections in the development plan will disable the regulatory approval process, the proposals received by the corporation in the first 6 months of the current financial year are almost equal to the numbers received in the whole of the last year.

Bikram, Mumbai

7th December 2015

Comment

Hi Bikram,
It is a clear cut indication that developers have been making a beeline for regulatory approvals under the old development plan, expecting a more tough one on the support.

As per the latest report, the western suburbs recorded maximum project completions, whereas the eastern suburbs show a great upsurge in new proposals and commencement certificates.

Suresh,

7th December 2015

It is true Suresh,
After last year's slowdown, there seems to be a pick-up in building proposals. As against 77 proposals a month in financial year 2013-14, the last 7 months in current fiscal show that the average has gone up to 86, an improvement of 11%.

Bikram, Mumbai

7th December 2015

Yes, even i have some data which indicates that between April and October 2015, the BMC issued 622 commencements certificates compared to 1097 clearances last year and 1083 in 2013. The maximum number of commencement certificates issued in the current year are in the eastern suburbs between Ghatkopar and Mulund. This year, the BMC issued 326 certificates for building projects in this belt. In contrast, the western suburbs between Bandra and Dahisar received 203 clearances to commence work while 93 projects in the island city received these certificates.

Amreesh Murugan,

7th December 2015

Yes, it is true that in spite of inactive residential market, developers are still rushing to submit building proposals to the Brihanmumbai Municipal Corporation. As per the report, between April and October, the corporation's building proposal department received over 600 construction proposals across Greater Mumbai.

Amreesh Murugan,

7th December 2015

Comment

Hi Amreesh,
In 2013, the total number of proposals submitted touched a high of 1279. Last year saw an alarming dip of around 25% compared to 2013. But there seems to be an upward swing again this year with over 600 building proposal. Data was collected fro the civic administration's development plan department, which compiles a monthly list of building proposals submitted in the island city and the western and eastern suburbs.

Suresh,

7th December 2015