Tag Archives: Mumbai’s real estate market

Mumbai’s real estate crimes are on the rise

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Case studies showed examples of developers manipulating real estate values by either undervaluing properties at first or inflating them above market rates. 

Real estate is a big business and a sizable market in Mumbai. In Mumbai, real estate is a significant industry and business. Real estate-related crimes are increasing in the city concurrently with this growth. Many builders, including well-known developers, have been implicated in deceiving individuals. Reports about cases involving dishonest developers arrive at almost every police station every few days. Every couple of days, all police stations report cases involving people who have been cheating. Real estate scams have cost many people their entire life savings. 

Developer Lalit Tekchandani was recently taken into custody in a housing fraud case by the Mumbai police’s Economic Offenses Wing (EOW) on January 30. In Taloja, Navi Mumbai, the complainant invested Rs 36 lakh in Tekchandani’s construction project; however, a year before the project’s 2017 deadline, work ended abruptly. In a recent incident, an arrest took place by EOW of developer Jayesh Vinod Tanna on suspicion of defrauding 27 flat buyers out of Rs 40 crore in a Goregaon project. Another case, according to Ahuja Builders, involves a 20-year-old housing and investment scam. 

The father-son team of Jagdish and Gautam Ahuja (Ahuja builders) allegedly defrauded over two thousand homebuyers, according to lawyer Prakkash Rohira, who represents homebuyers in the High Court. Jagdish Ahuja is in custody, but Gautam is still at large despite police efforts to apprehend him. Furthermore, several developers have tricks by feigning to sell homes. 

Tax cheating developers

An increasing number of people in Mumbai City are worried that developers are involved in financial fraud, which is depressing and costly for the clients. Some developers have come under fire for allegedly using deceptive marketing techniques, like displaying features and amenities that do not match the products. Misleading representations have caused customers to invest in properties. 

Case studies showed examples of developers manipulating real estate values by either inflating them above market values or by first offering lower prices and then raising them during the deal. Project completion delays have been a common problem, putting purchasers in financial jeopardy because they had budgeted their investments based on deadlines. Some developers have missed scheduled delivery dates without providing sufficient justification or payment.

Developers are accused of compromising construction quality

In certain instances, developers have faced allegations of sacrificing construction quality, utilizing inferior materials, or taking shortcuts to increase their earnings. It poses a threat to built properties’ longevity and security. 

Developers may make it more difficult for investors’ clients to comprehend the big picture of finance if they follow the opaque transaction processes that have drawn criticism from some places. Because hidden costs are unpleasant surprises, buyers frequently perceive them as scams. 

Affected clients file a lawsuit

To address these problems, several impacted clients have taken legal action, registering complaints with consumer forums and real estate regulatory bodies. Consumer advocacy organizations have also been actively educating the public about these dishonest practices and pressuring authorities to punish negligent developers harshly. 

The chairman of Mumbai Grahak Panchayat, advocate Shirish Deshpande, asked a question about the Maharashtra Real Estate Regulatory Authority, stating that “the government seems to be falling short in preventing such crimes. “On May 1, 2017, the MahaRERA Act was signed into law to guarantee accountability and transparency. 

He continues, saying, “Developers defame the MahaRERA Act by submitting fictitious documents to the agency to legitimize their projects and defraud the public. The government does nothing. MahaRERA only provides dates; occasionally, it does not provide dates. After a year, some customers receive dates, which is advantageous for the builders. RERA does not entertain complaints filed by customers.” 

‘MahaRERA still isn’t solving over seven thousand complaints. The Consumer Forum sent a letter to the MahaRERA Chairman about this, but he has not replied yet. The number of complaints and stalled projects continues to increase. Builders aren’t taking the RERA Act seriously. Deshpande claims that despite the MahaRERA Act’s strength, its application is being done incorrectly. 

“When any complaint reaches our association, our committee scrutinizes it and decides whether to inform MahaRERA or resolve it internally,” said Harish Kumar Jain, president of the Brihanmumbai Developers Association. 

“The Association encourages developers to follow the rules, which will help the real estate industry’s reputation, especially since it will give consumers more confidence. Cheating cases are much less common now than in the past; Jain noted that it is uncommon to find even 10%of such cases. 

Giants of the Mumbai real estate market head to Ayodhya as prices rise 179% following the Ram Mandir ceremony.

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Their three main areas of concentration are land plotting (sale of plots), residential township development, and business, including hospitality and commercial. 

Real estate moguls from Mumbai are scurrying towards a sacred plot of land as soon as Ram Lala arrives in Ayodhya!

According to trustworthy sources, seven major players (from Mumbai), including Oberoi Realty, Godrej Properties, Runwal Group, and the Hiranandani Group, have acquired sizable land parcels in the temple city during the last three months.

Property values increase by 179%

Following Prime Minister Narendra Modi’s Pran Pratishthan ceremony on January 22, property prices are up 179%, per an online real estate portal.  

B Teams of Mumbai-based developers are currently in Ayodhya looking for additional land banks and setting up business development operations, according to a reliable source who spoke with FPJ. Their three main areas of concentration are land plotting (sale of plots), residential township development, and business, including hospitality and commercial. 

Only 590 hotel rooms are available in Ayodhya’s 17 hotels, according to Dr.Adv. Harshul Savla, managing partner of M Realty. There are plans to build 73 hotels, 40 currently under construction. OYO plans to add 1000 rooms, and Marriott International and IHCL have already inked hotel deals. “It is no surprise that developers are sending out teams on a land grab expedition, given the enormous potential for hospitality!”

The average property prices in Ayodhya, where the Ram Mandir opened to the public on January 23, have increased by 179% in the previous three months. According to the real estate portal, Ayodhya’s average prices grew from Rs 3,174 per square foot in October 2023 to Rs 8,877 per square foot in January 2024. 

Land rates, which in 2019 varied from Rs 1,000 to 2,000 per sqft, are currently at Rs 4,000 to 6,000 per sqft, according to real estate consulting firm ANAROCK Group. 

The cost of real estate close to Ram Mandir ranges from Rs 10,000 to Rs 15,000 per square foot. Before, it cost between Rs. 2000 and Rs. 3000 per square foot. Now, properties within 6 to 15 km of the temple site fetch between Rs 4,000 and Rs 9,000 per square foot. 

The demand for commercial land is increasing, local real estate experts told FPJ. The Abhinandan Lodha group is developing Sarayu, a seven-star mixed-use luxury enclave, on the exact spot where a team from Maximum City recently approached Sudhakar Srivastava, a local hotelier and property dealer from Ayodhya, for a land parcel. It is said that Bollywood star Amitabh Bachchan paid approximately Rs 14.5 crore for a 10,000-square-foot plot here.  

For locals, property prices have become unaffordable. 

Srivastava continued by saying he had shown some sites to a team of developers from Mumbai. “They have taken an interest in a 640-square-foot land parcel near the Abhinandan Lodha group site. One Biwa is equal to 1362 square feet. Through my communication with the local farmers, we were able to unite them on a single platform and gather 640 Biswas on an ongoing basis. However, Srivastava told FPJ, “The developer is not too happy about the price point and wants 1000 Biswas.”

He said that the cost was approximately Rs 10 lacs per biwa. He stated that a Biswas was once available for RS 2 to 3 lacs. Even though land parcels are readily available, a source told FPJ that farmers and local agents are purposefully raising the price and projecting scarcity because they are sensing demand from large players. “They are projecting a situation of supply and demand.”  

According to Srivastava, the entry of foreign real estate players into Ayodhya, including Mumbai, NCR, Gujarat, and other districts, has driven up property prices to the point where residents can no longer afford them in certain parts of the city. According to Anuj Puri, Chairman of ANAROCK Group, “There is a growing demand not just from locals but from investors outside Ayodhya as well.” 

Property registrations in Ayodhya are said to have increased following the 2019 Supreme Court ruling and the Mandir’s opening. Data from the Ayodhya district’s Stamp and Registration Department shows that between 2017 and 2022, property registrations increased by 120%. 

Following the Supreme Court decision and the Mandir’s recent opening, there has reportedly been a spike in Ayodhya property registrations. The Stamp and Registration Department in Ayodhya district has released data indicating a 120% increase in property registrations between 2017 and 2022.