Mumbai real estate market: Is it possible to lease a home for two to six months in the city of finance?

According to brokers, you can rent a property in Mumbai for two to six months, but the landlord might charge more because the lease is only for a short time. 

Although a minimum of one year is the ideal time to rent a property in Mumbai, whether it be residential or commercial, there are cases where properties are rented for as little as two to six months.

Real estate brokers claim that although there is no law against property owners renting out their private residences for a shorter time, they must charge a premium rent usually 20% higher than the current rate.

Everything about renting out real estate in Mumbai 

Tenants and property owners in Mumbai sign a leave and license agreement. Stamp duty is required to be paid at the time of registering the leave and license agreement. The monthly rental and deposit the property owner charges determines the amount of stamp duty.

The Maharashtra government’s registry office receives and files up to 30,000 signed agreements about leave and license. 

Shorter rental terms are subject to higher fees. 

Brokers claim that because there are few options in the market, property owners who rent out their apartments for shorter periods typically charge higher rentals.

“If a property is leased for six months, it can bring in either Rs 600 or Rs 700 per month, as opposed to Rs 550 per square foot if it is leased for five years. This is because fewer homes are available on the market for shorter leases than for longer leases, according to Dhiren Doshi, a property consultant with offices in Mumbai. 

The property owner has the right to request a higher rent because the apartment is being rented for a shorter period. The premium might, however, slightly decrease if the property owner is looking for a shorter-term lease, he added. 

These properties in Mumbai are available for short-term lease. 

IMC India Securities Pvt Ltd recently leased approximately 5830 square feet of commercial space in Mumbai’s BKC from Agni Commex LLP for Rs 700 per square foot per month, according to documents obtained by Propstack.

IMC India Securities Pvt Ltd is leasing the commercial space at Maker Maxity 4, an office space in BKC, for Rs 40.81 lakh per month, or Rs 700 per square foot.

Real estate brokers, however, stated that because the rental is only for six months, the rent per square foot is Rs 700, which is more than the typical BKC rent of Rs 500 to 550. 

A subsidiary of Redbrick Offices pays Rs 267.5 crore for 22 office spaces in Mumbai

Including both transactions, the built-up area acquired at the Times Square building in Mumbai exceeds 87,000 square feet. According to the documents, the buyer has paid a total stamp duty of Rs 8.02 crore for these transactions. 

Documents viewed by CRE Matrix, a real estate analytics platform, show that Red Fox IT Infra LLP, a subsidiary of managed workspace provider Redbrick Offices, paid roughly Rs 267.5 crore in two separate deals for 22 office units in the Times Square building at Marol in Mumbai.

Including both transactions, the total built-up area acquired exceeds 87,000 square feet. According to the documents, the buyer has paid a total stamp duty of Rs 8.02 crore for these transactions.

The total number of parking spaces from the two agreements is 88, it was added. We bought the office buildings from NTPL Developers LLP.

Documents show that the first deal, in which Red Fox IT Infra LLP paid Rs 218.9 crore to buy up to 18 office units in the Times Square building in the Marol neighborhood of Andheri East, Mumbai, was executed on May 3, 2024. 

The purchaser of the 72,150 square-foot deal paid a stamp duty of Rs 6.56 crore. There are 73 parking spaces included in the accord. 

For Rs 48.54 crore, the company paid for as many as four office units on the sixth and eighth floors of the Times Square building during the second deal. These four office spaces total 15,468 square feet in built-up area, and the purchase includes 15 parking spaces. 

The sale deed for this deal was executed on May 8, 2024, and Red Fox IT Infra LLP paid a stamp duty of Rs 1.45 crore, per the documents. 

The buyer and seller of the deal were slow to respond. Upon receiving a response, the copy will be updated. 

High-profile business transactions in Mumbai 

Mumbai has recently seen several high-profile commercial real estate transactions. In June, the Kalpataru Infinia building in Santacruz East, Mumbai, was bought by ICICI Prudential Asset Management Company Limited for Rs 315 crore. 

In the same month, Santacruz East in Mumbai saw the purchase of multiple floors in a commercial building totaling over 70,000 square feet by Unity Small Finance Bank, which is owned by Centrum Group and BharatPe, for a sum of Rs 227 crore. 

In June 2024, Bollywood star Amitabh Bachchan paid approximately Rs 60 crore for three office units in Mumbai’s Veer  Savarkar Signature building. 

The Fort area headquarters of Tata Digital Private Limited (TDPL), a subsidiary of Tata Sons Private Limited, had its lease renewed in May 2024 for a monthly rental of Rs 2.98 crore. 

Stamp duty collections increased by 15% while property registrations in Mumbai rose 11% year over year in June 2024

In the Mumbai real estate market, there were 12,000 property registrations reported in May 2024. 

In June 20214, the number of property registrations in the Mumbai real estate market increased by over 11% to 11,443 from 10,319 the previous year, as per the data released by the Inspector General of Registration and Controller of Stamps of Maharashtra. In the Mumbai real estate market, there were 12,000 property registrations reported in May 2024. 

According to Maharashtra government data, stamp duty collections from property registrations in the Mumbai real estate market increased by over 15%, from Rs 859 crore in June 2023 to 986 crore in May 2024. Stamp duty receipts were Rs 1,034 crore as of May 2024. 

Sectoral estimates indicate that residential units account for approximately 80% of all monthly property registrations in Mumbai.  

While there was a YoY increase in Mumbai property registrations in Hune, the average recorded registrations for the first half of 2023 were 12,044 units, higher than the average of 10,578 units for the same period in 2023. As per the findings of a real estate consultant named Knight Frank India, this suggests that Mumbai’s residential market is resilient and buyers remain confident.  

Furthermore, the government’s average revenue collection in the first half of 2024 was Rs 974 crore, 8% more than the average of Rs 906 crore in 2023. Many contributing factors, including the increased volume and value of properties being registered, can be attributed to the increase in revenue, according to a report by Knight Frank India. 

The property sale registrations’ consistent year-over-year growth highlights Mumbai’s real estate market’s tenacity. Strong GDP growth, rising income levels, and a favorable environment for interest rates are all expected to contribute to this positive trend, leading to more potential buyers, according to Shishir Baijal, Chairman & Managing Director of Knight Frank India. 

Properties with 1,000 square feet or less continue to be the most popular. 

Apartments between 500 and 1,000 square feet saw a notable spike in June 2024, making up 46% of all property registrations. Conversely, 36% of registrations were for apartments up to 500 square feet, a decrease from 41% in June 2023. 

This shows a distinct preference for larger apartments, as the proportion of units under 500 square feet is declining. According to Knight Frank India’s report, 15% of all registrations were for homes with an area of 1,000 square feet or more. 

“The home sales registrations for June 2024 have witnessed a rise compared to June 2023, reflecting decent growth over the past year. The influence behind this upward trajectory of housing demand continues to be the connectivity boost across the city and the redevelopment boom. This upbeat sentiment is here to stay, and we will continue to witness the demand to further amplify across all segments and micro-markets in this region, especially in the western suburbs and eastern belt of Sewree-Wadala,” said Dhaval Ajmera, Director, of Ajmera Realty and Infra India Ltd. 

Mumbai real estate: Will the city’s rental growth slow down as remodeled apartments go on the market?

Rent for a three-bedroom apartment in a posh building in Mumbai’s Andheri district was Rs 77,000 monthly in 2021; however, as the city’s historic building rehabilitation project gained momentum, the monthly rent increased to Rs 1.14 lakh in 2023. The city now has more redeveloped homes accessible, so monthly rents are approximately Rs 1.18 lakh. 

The number of redevelopment projects in Mumbai has increased, adding to the city’s rental growth in recent years. The redevelopment of several old buildings needed short-term rentals, but finding them in the same location was hard because there was not much of it. Real estate brokers and consultants claim that in 2024, this growth appears to have slowed down. 

“After growing by nearly 50-60% in the last two years between 2021-2023 – rental growth across premium gated societies in Mumbai has cooled down to 5-9% in 2024,” data shared by Zapkey.com research indicates. 

“An increase in society redevelopment was the primary driver of Mumbai’s massive rental growth in 2021-2023. In these societies, property owners were forced to rent short-term housing. The market’s mismatch between supply and demand caused rents to soar due to a rise in demand for rental properties. Demand was higher for premium gated societies,” said Sandeep Reddy, co-founder of Zapkey.com. 

Given that the number of new redevelopment projects has slowed down and more new projects are being completed, which has increased the supply of upscale gated communities, Reddy continued, that the growth in rental income in 2024 is expected to be benign and in line with inflation. 

The impact on western suburbs’ rents 

The slowdown in rental growth has affected neighborhoods like Borivali, Malad, Goregaon, and Kandivali. In 2021 and 2023, the monthly rent for a 2BHK apartment in a posh building in Borivali was Rs 39,000 and Rs 58,000, respectively. According to research data shared by Zapkey.com, 2 BHK apartments in the same building are available for rent in 2024 for Rs 65,000. 

In 2021, a 3 BHK apartment in Malad East, close to the Metro station and the Western Express Highway, was for rent at Rs 55,000. The monthly rental fee rose to Rs 85,000 in 2023 and Rs 87,000 in 2024. 

Similarly, a large number of buildings in the Matunga neighborhood of Central Mumbai were slated for renovation in 2021, Due to these approaching or having already offered possession, the market’s supply has expanded. 

“It all began in 2021 with a 50% reduction in premiums. There were more redevelopment projects as a result of this. A mismatch between supply and demand caused rentals to skyrocket as a result. In 2021, there was a greater demand and a restricted supply for rental apartments. 

However, in 2024, the buildings which began being renovated in 2021 are now being turned over piecemeal. Monthly rents have become more reasonable due to the increase in the supply of new housing, according to Harshul Salva, managing partner of M Realty, which operates in the Matunga neighborhood of Central Mumbai. 

The demand for rental housing in western suburbs in 2024 differs from that of 2021, 2022, or 2023. According to Dhiren Doshi, a property consultant based in Mumbai’s Borivali, older buildings that underwent renovation three years ago have now approached possession in neighborhoods like Shimpoli in Borivali West, close to Milap Talkies, and SV Road in Kandivali West. 

As a result, people in the neighborhoods have begun to serve notices to the owners of the rented apartments, asking them to leave. Due to the correction of the demand ratio, this is causing an excess supply to enter the market where demand is different from before. As a result, prices are gradually stabilizing and in certain cases, even declining Doshi continued. 

Why has the Mumbai real estate market seen an increase in redevelopment activity? 

Mumbai has over ten thousand crumbling, ancient buildings. The Maharashtra government announced in 2021 that various premiums paid by developers to the authorities would be waived in full, which provided impetus for the redevelopment of these historic buildings. 

However, developers willing to pay the remaining 50% of the premium upfront could only participate in this program. 

How do you define premium? 

The term “premium” describes the various fees the approving authority imposes. These comprise, among other things, the fungible premium, the premium paid for the floor space index (FSI), the open space deficiency premium paid for more land covered for construction, and the premium for lobbies, lift wells, and staircases. 

Developers in the Mumbai market pay the authorities more than 20 different kinds of premiums. Sectoral estimates place the amount developers pay for premiums at between thirty and thirty-five percent of the project cost. 

Why are Bengaluru and Mumbai the top destinations for real estate developers?

At least six real estate developers from Bengaluru and Mumbai have increased their footprint in the two cities during the last ten years. Numerous companies, including the Delhi-based DLF, the Bengaluru-based Prestige Group, and Puravankara, have announced or entered the Mumbai real estate market. Realtors from Mumbai, including Lodha and Godrej, have also set foot in Bengaluru.  

However, why do developers wish to have a piece of the real estate markets in Bengaluru and Mumbai? Real estate experts say the main goal is to increase and establish their presence in more cities. 

According to experts, the growth pattern of listed real estate developers in these cities is more pronounced than that of unlisted or mid-sized realtors. 

Mumbai attracts developers due to its high sales velocity and better margins. 

Puravabkara Limited, a Bengaluru-based company, made market entries in Pune in 2017 and Mumbai in 2021. The company has been expanding quickly into Pune and Mumbai in recent years. The company also has a substantial portfolio in the Pune and Mumbai commercial markets. 

“There are several reasons why expanding into the Mumbai real estate market makes sense. The first is that the size of the real estate market in the Mumbai Metropolitan Region (MMR) is nearly the same as that of the entire South Indian real estate market, making it the largest in the nation. Rajat Rastogi, CEO of Puravankara Limited’s West and Commercial Assets, stated, “Secondly, MMR offers products across price segments that range from ultra-luxury to affordable housing thus enabling a wide product range.” 

Approximately 4.5 million square feet are currently under development in Puravankara, the residential real estate market in Mumbai and Pune. This includes several projects in both cities. “In Pune and Mumbai, we intend to launch six or seven projects in the upcoming year.” Our plans include creating a substantial commercial real estate portfolio for Pune and Mumbai. Therefore, We are deepening our presence in Mumbai and Pune in addition to having a footprint,” Rastogi stated. 

As of FY24, Prestige Group, another developer based in Bengaluru, has 37 active projects. The company’s investors’ presentation for FY24, of these projects, seven are in Mumbai, twenty are in Bengaluru, and the rest are in places like Hyderabad, Calicut, Bengaluru, Kochi, and Ooty. 

Thirteen of the thirty projects the company has in the works are in Bengaluru and three are in Mumbai. 

An anonymous developer from Mumbai informed HT Digital that despite having a solid portfolio in Mumbai, he began a project in Pune. “I will need to build 20 square feet in Pune to make the same amount of money as one square foot in Mumbai. Thus, it makes sense for firms with listings to join the Mumbai market. The demand for luxury housing puts you on different scales and price points, so mid- and small-sized developers should keep working in their home market of Mumbai, said the speaker. 

Mumbai realtor moves into Gurgaon; North Indian developer ventures into Mumbai 

Mumbai’s Andheri is expected to see the launch of a project by Delhi-based DLF this fiscal year. Together with Trident Group, DLF is developing the Slum Rehabilitation Authority project. 

Oberoi Realty declared in November 2023 that it would buy 14.81 acres of land in Gurgaon, Haryana’s Sector 58 for Rs 597 crore. Up to 2.6 million square feet of floor area are believed to be attainable with this land. 

The company plans to construct a luxurious residential group housing project on this land. 

Are developers from Mumbai moving to Bengaluru because of the lower land prices? 

Bengaluru is the first choice for Mumbai-based developers looking to expand across multiple cities or the nation. Bengaluru is the first choice for Mumbai-based developers looking to expand across several cities or the entire country. Speaking with HT Digital, industry insiders cited high end-user demand and land availability over investment options as key draw factors for this market. 

“There is a lot of demand in Bengaluru, the country’s largest commercial market. According to Shantanu Mazumder, executive director of Knight Frank India’s Bengaluru division, other developers’ attention started turning towards the city at that point and has since grown. 

Additionally, he clarified, that lower land prices in Bengaluru relative to Mumbai aid developers in maintaining profit margins because building costs are relatively constant across cities. 

Over the last ten years, several well-known Mumbai brands, including Tata Housing, Mahindra Lifespaces, and Godrej Properties, have successfully entered the garden city. 

For instance, Lodha recently launched two opulent residential projects in Bengaluru’s eastern and southern regions, making its first foray into the business. 

According to data accessible on the integrated real estate platform Square Yards, Godrej Properties has expanded its presence in Bengaluru with over 30 projects across various categories. 

On the other hand, Tata Housing has yet to finish any projects in the city. After moving to Bengaluru in 2015, Mahindra Lifespaces has started work on four residential developments. 

The final consumer drives the real estate market in Bengaluru.

Experts stated that attracting Bengaluru’s astute consumers necessitates fierce competition due to having a diverse range of seasoned home brands, including Sobha, Puravankara, provident Housing, RMZ, and Brigade, among many others.  

Bangalore is a sizable market. Within the Grade A space, there are a minimum of 17-18 established operators. Mazumder clarified that many developers who relocated to Bengaluru struggled with their first one or two projects since they needed to establish a track record of success to gain trust. 

He claimed the patrons here are seasoned because they have watched home players grow. Consequently, a novice player typically completes the life cycle of two to three projects before branching out.  

“Bengaluru is a very evident end-user-driven market; it is not a speculative market,” Mazumder declared. 

“Identifying, building, and leasing are the first steps in the commercial segment. Thus, the player must continue to invest in the project for four to five years before leasing. Consequently, most of them are eager to begin with residential properties before gradually expanding into the commercial market,” he continued. 

Mumbai Real Estate Deal: 360 One founder purchases two luxury apartments for over Rs 170 crore

Karan Bhagat, founder and CEO of 360 One (formerly IIFL Wealth & Asset Management), has purchased two sea-view properties in Oberoi Realty’s Three Sixty West project in Mumbai’s posh area Worli for over Rs 170 crore, according to documents accessed by Zapkey. 

The two apartments measure 12,896 square feet and are located on the 45th and 46th floors of the Three Sixty West project. 

Bhagat bought an apartment on the 45th floor for Rs 85.03 crore. The apartment has an area of 6448 square feet and four car parking spaces. The documents state the transaction was registered on May 22, 2024. 

The second apartment, on the 46th floor, is 6448 square feet and includes four parking spaces. Bhagat paid Rs 85.03 crore for the property, as per the documents. 

The documents show Bhagat paid over Rs6.44 crore in stamp duty to register the two luxury units. 

Bhagat purchased the apartments directly from Oberoi Realty, who sold them within three years of acquiring them from joint venture partner Sahana Group. Bhagat’s apartments are among the more than 60 units acquired by Oberoi Realty from project developer Oasis Realty. 

Emails were sent to Bhagat and Oberoi Realty. 

Oberoi Realty paid Rs 230.55 crore for a luxury penthouse at Three Sixty West in Mumbai’s posh Worli area on February 12, 2023. The company has reportedly acquired approximately 30,000 square feet through its affiliate RS Developers, making it one of the largest single deals in India. 

According to a regulatory filing, Oberoi Realty’s shareholders approved the acquisition of Oasis Reality’s Three Sixty West residential premises for up to Rs 4,000 crore in December 2022. Stamp duty and other expenses totaled Rs 204 crores. Oasis Reality has discharged  Rs 605 crore of its income tax liabilities. 

Kiran Gems promoters paid Rs 97.4 crore for a 16,000 sq ft sea-facing apartment at Oberoi 360 West in Mumbai, according to documents accessed by Zapkey.

 According to documents, the apartment measured 14,911 square feet (Rera carpet) and included 884 square feet of additional space.

In 2023, Welspun Group chairman BK Goenka purchased a penthouse in the same luxury project at Worli for Rs 230 crore, making it the second-biggest transaction in the city last year. The penthouse is located on Tower B’s 63rd floor and has a carpet area of 29,885 square feet. 

Madhav Prasad Agarwal of Sajjan India Group and IGE (India) Pvt Ltd bought two apartments in the Oberoi Realty luxury project in 2022 for Rs 151 crore and Rs 153 crore, respectively. The deal was among the top 10 real estate deals of the year. 

In 2023, Mumbai experienced an increase in high-end transactions after the finance minister removed the capital gain tax benefit for property sales above Rs 10 crore. 

In 2023, Sumir Chadha, co-founder and managing director of the private equity firm WestBridge Capital, purchased a luxury apartment on the 60th floor of the Oberoi Three Sixty West project in Worli for Rs 96.12.  

Last year, Everest Masala Group founder Vadilal Shah’s family purchased two apartments in Mumbai’s Oberoi Three-Sixty West project for Rs 143.50 crore. One apartment cost Rs 73.50 crore and the other Rs 70 crore. These luxury apartments include multiple parking spaces. 

In October 2023, Asha Mukul Agarwal, director at Param Capital Research Pvt Ltd, a leading capital market trading and investment firm, purchased three apartments in Lodha Group’s luxury project Lodha Malabar in South Mumbai for Rs 263 crore. 

D Mart owner Radhakishan Damani’s immediate family and close associate purchased 28 apartments in Three Sixty West’s Tower B FOR rS 1,238 CRORE IN 2023.  

Oberoi Realty’s Three Sixty West project consists of two towers: Tower A, with 66  floors and apartments, and Tower B, with 90 floors and 256 units, including 4BHK, 5BHK, and duplex configurations. It also includes two penthouses of 11,036 square feet each. 

The name for the sea-view project is most likely derived from its 360-meter height and the fact that all apartments face west. It is a ready-to-move-in ultra-luxury housing project. 

According to the MahaRERA portal, the Three Sixty West project is registered in the name of Oasis Reality as a promoter, with four promoters: SkyLark Buildcon Pvt ltd, Shree Vrunda Enterprises, part of Sudhakar Shetty’s Sahana Group, Oberoi Constructions Ltd and Astir Realty LLP, both promoted by Vikas Oberoi. 

Luxury residential housing sales increased by 151% in the January-March quarter of 2023, with Mumbai growing by 44% year on year and Delhi-NCR rising by 216%, according to the ‘India Market Monitor Q1 2023’ report released by CBRE South Asia Pvt ltd, a leading real estate consulting firm. 

In April 2024, 11,504 units were registered in Mumbai, a 9% increase from the previous year and contributing over Rs 1,043 crore to the state exchequer. According to data from the Maharashtra government’s Department of Registrations and Stamps (IGR), revenue from property registrations rose by 16% year on year (YoY) compared to the same period last year. 

DLF to enter Mumbai and Goa this year with luxury homes; more information here

DLF, a real estate developer, plans to enter the Mumbai residential market in the second half of the current fiscal year (2024-25), with flats priced between Rs 6 and 8 crore, according to Akash Ohri, its joint managing director and chief business officer, who spoke with Business Standard on Wednesday. 

The Gurgaon-based realtor will be in his second inning in Mumbai. About 11 years ago, the firm exited the financial capital market. 

In an exclusive interview, Ohri revealed that the developer will also launch 62 villas in Goa, priced between Rs 40-50 crore, in the second or third quarter of FY25. 

“We plan to visit Goa next quarter,” Ohri said. 

Earlier this week, DLF reported a 62% increase in its consolidated net profit to Rs 920.71 crore for the quarter ended March 31, compared to Rs 570.01 crore in the same period last year. 

Its total sales bookings fell by 2% to Rs 14,778 crore from a record Rs  15,058 crore last year. It plans to increase sales bookings by  15% to Rs 17,000 crore in fiscal year 25. 

DLF is the country’s largest real estate company by market capitalization. 

On Wednesday, Ohri said that non-resident Indians (NRIs) contributed 22-23% of total sales bookings in FY24. 

The NRI contribution to the recently launched Rs 5,590 crore project Privana West, which sold in three days, was 27%. 

For FY25, DLF  intends to maintain an NRI contribution of 22-25  percent. 

“We will not do more than that this year; we have a lot of domestic users, so we set quotas,” he said. 

Furthermore, DLF hopes to generate Rs 3,500-5,000 crore in total sales bookings from super luxury apartments out of Rs 17,000 crore. 

Apart from Goa and Mumbai, Ohri stated that DLF would launch luxury housing projects at DLF Phase-5 in Gurgaon. It would be revealed following the launch of villas in Goa. 

The upcoming DLF phase 5 project in Gurgaon is expected to outperform its ultra-luxury housing project The Camellias, where an apartment recently sold for Rs 100 crore on the secondary market.

Delta Corp. and its partners set up a Rs 765 crore real estate platform for Mumbai redevelopment

The platform, with a total investment of Rs 765 crore, will be established in collaboration with Alpha Alternatives Fund Advisors LLP, its affiliates (AA Group), and Peninsula Land Limited. 

Delta Corp, a gaming and hospitality company, is establishing a real estate development platform for residential redevelopment in the Mumbai Metropolitan Region (MMR), as well as plotted development in and around  MMR, Alibagh, Khopoli, Karjat, and Pune, according to a stock exchange filing on May 8. 

The platform, which will cost Rs 765 crore, will be developed in partnership with Alpha Alternatives Fund Advisors LLP, its affiliates (AA group), and Peninsula Land. 

The company also stated that the real estate platform will be the only vehicle for such projects, with an investment of Rs 90 crore (11.76) the AA group will invest Rs 450 crore (58.82 percent), and Peninsula Land (PLL) will invest Rs 225 crore.  

According to the statement, PLL will be the development manager for the platform entities’ projects. 

“This opportunity is part of our ongoing investment in growing and diversifying our business through internal accruals while remaining debt-free. 

Our focus remains on our core areas of gaming and allied hospitality, with most of our capex and investments going toward expanding those businesses,” Delta  Corp stated. 

Chief  Financial Officer Anil Malani told Moneycontrol earlier this year that the company intended to invest in its offline business over the next two years to return to a profit margin of at least 38%.  

Delta  Corp has postponed its online gaming expansion plans after the GST rate was raised to 28%.  

Mumbai’s real estate players predict robust growth within MMR

According to a report released by property consultants Knight and Frank, Mumbai recorded 11,504 property registrations in April 2024. 

With property registrations increasing by 16% in revenue to the exchequer and the state government maintaining the status quo on ready reckoner rates, real estate developers in the Mumbai Metropolitan Region (MMR) predict strong growth in the sector. They are optimistic about larger purchases in areas where connectivity has been resolved through the implementation of infrastructure projects such as the expansion of Mumbai Metro, Mumbai Trans Harbour Link (MTHL), Coastal Road, and others.

Prashant Sharma, President of the National Real Estate Development Council (NAREDCO) Maharashtra, stated, “We are optimistic about the future of the real estate sector in MMR.” Our projections show a strong growth trajectory, driven by several key factors. First, the rising demand for residential properties, particularly in the affordable and mid-segment markets, is a good sign. We also see a resurgence in commercial real estate, fueled by the expanding IT and finance industries.”  

“Moreover, government initiatives such as the relaxation of FDI regulations and the emphasis on infrastructure development, including the expansion of the Mumbai Metro, Coastal Road, and several other projects, making real estate investments even more appealing. We are also aware of the challenges, which include regulatory hurdles and the need for faster project approvals. However, with the state government’s commitment to improving the ease of doing business and our collaborative efforts to advocate for policy reforms, we are confident that MMR will remain a vibrant and dynamic market for real estate investment,” Sharma concluded. 

Manju Yagnik, Vice Chairperson of the Nahar Group and Senior Vice President of NAREDCO, Maharashtra, stated, “The residential real estate segment has demonstrated resilience, making it an appealing investment option for those with medium to low-risk tolerance. Despite numerous challenges, this industry has remained, emerging as an excellent choice for many investors. The higher initial cost of commercial properties frequently attracts investors to the residential segment. The higher initial cost of commercial properties frequently attracts investors to the residential segment. For people with limited funds and maintenance skills, residential real estate is a more accessible and practical option. 

Nitin Singhal, the co-founder of PropFina, stated, “With most micro markets experiencing higher supply than ever before, there will be corrections by highly leveraged players.” Those who have financially engineered their project portfolios and maintain control over their brand will have the least impact. Corrections can range from 10-15% and will be specific to micromarket dynamics. There could be higher offtake in areas where connectivity issues are being resolved. 

Commercial and warehousing sectors are on the rise as real estate trends. 

Singhal said that affordable housing will largely remain the same, and “When it comes to the commercial segment, which includes retail and office spaces, lease rates are going up and vacancies are going down. Introducing small and medium real estate investment trusts (SM REITs) creates a significant secondary market absorption opportunity. “This segment may experience a northwards moment,” he said. 

“Similarly, major warehousing players are quickly acquiring the land parcels, some of which are backed by sovereign funds seeking safe havens with higher-than-inflation returns.” Clear title land parcels ranging from 50 to 100 acres will see a rise in pricing, particularly along Samruddhi Mahamag exits, DMIC Virar-Alibag Multi-Modal Corridor (VAMMC), and so on. Singhal concluded that there will be a new segment of multi-level last-mile connectivity warehousing.  

April 2024 Trends and Consumer Preferences 

According to a report released by property consultants Knight and Frank, Mumbai recorded 11,504 property registrations in April 2024, contributing more than INR 1,043 crore to the state exchequer. According to the Maharashtra Department of Stamps and Registrations, in April 2024, there was an increase in registration of apartments measuring up to 500 square feet, accounting for 45% of all registrations. Of all the properties registered, nearly 86% of the Western suburb buyers and 92% of Central suburb consumers choose to buy within their micro market. This decision is influenced by the familiarity of the area and the availability of products that match their pricing and feature preferences. 

The cost of building real estate in India is predicted to increase by 6% by 2024, with Mumbai being the most expensive city

JLL’s most recent Construction Cost Guide predicts that in the financial year (2024) across all sectors, the nation’s overall construction costs will rise by an average of 6%. 

With higher prices, Mumbai remains the most expensive city overall, but Chennai is a more cost-effective option. The increased cost of necessary building supplies like cement, structural steel, reinforcement steel, and stones is the cause of Mumbai’s higher prices. 

The handbook offers information on real estate asset construction costs and market trends in important Indian markets. It contains an analysis of market trends for key building materials and a cost matrix representing various styles and quality levels.  

“To maximize expenditure, businesses are currently reevaluating their real estate decisions. The general trend is clear: construction costs are rising, even though the precise impact of the pandemic on these costs is still up for debate, according to Jipu Jose James, Managing Director, Project Development Services  (PDS), JJL, India. 

Customer spending is therefore anticipated to prioritize functions that improve the end-user experience. Cost management is essential to maintaining budget control and completing commercially and qualitatively viable projects. 

An increase in labor costs  

While several factors affect building costs in India, labor is also a key component in the country’s economic expansion. As a result, the supply-demand gap is narrowing as construction shifts to non-metropolitan and rural areas, resulting in a more stable labor market and lower wage inequality, according to the report. 

Labor rates have risen by an average of 6% per year over the last three years, increasing construction costs by about 2%. The industry heavily relies on its workforce, as evidenced by its increase to approximately 71 million employees in FY2023, up from 63.98 million the previous, year, due to urbanization and rising infrastructure demands. 

However, this growth is primarily in unskilled labor, exacerbating the skilled worker shortage. Lack of vocational training institutions impedes skill development, according to the report. 

According to the report, global construction costs will rise in the coming year. 

In New Delhi and Mumbai, Tesla looks for showroom space in shopping centers, high streets, and commercial districts

According to people familiar with the situation who spoke with HT Digital, Elon Musk’s Tesla has held preliminary discussions for showroom space in high streets, mall locations, and commercial districts in New Delhi and Mumbai with several real estate developers, including the biggest player DLF and Maker Maxity. 

Musk is anticipated to make a major announcement regarding a major investment in the third-largest automobile market in the world when he visits New Delhi the following week to meet Prime Minister Narendra Modi. 

“They require between 3,000 and 4,000 square feet of showroom space, which they need soon. Rental prices will vary depending on the location,” one of the individuals remarked, requesting anonymity. 

DLF did not reply to HT Digital’s questions. 

It should be noted here that DLF has leased retail space to Porsche in Capitol Point in Connaught Place and to Kia in DLF Cyber Hub, Gurugram. Vehicle dealership rentals are location-specific, according to real estate experts. “In the Connaught Place area, it may be anything above Rs 600 per sq ft. Car showrooms generally can pay higher rentals, often a premium of 25% to 30%. “They frequently become the standard for more expensive commercial rentals in a given area,” they stated. 

Moreover, rumors are circulating that Tesla is reportedly looking for showroom space in the Maker Maxity commercial development in Mumbai’s Bandra-Kurla Complex. 

Tesla and MakerMaxity have received emails from HT Digital. 

How do high-end automakers choose their parking lots? 

According to experts, showroom locations with easy access to the main road are typically sought after by luxury car manufacturers. 

These are frequently found in areas of the city that are easily accessible to wealthy customers. “The showroom ought to be situated somewhere where automobile deliveries are convenient. Better accessibility infrastructure ought to be present. Large hallways, spotless sidewalks, and a layout that enhances visibility were mentioned. 

Several international car brands have showrooms in Gurugram along Golf Course Road. Mercedes and BMW are a couple of these. High net-worth individuals live in this area. According to sources, Maserati is anticipated to open a showroom along this stretch. According to them, the expense of renting a car showroom at this location can reach Rs 600 per square foot. 

According to a different real estate expert, residential clusters home to the wealthy and well-known are the first choice for luxury car showroom spots alongside those with prestigious corporate offices. 

Aralias, Magnolias, and DLF Camellias are a few of the lavish residential developments along Golf Course Road. 

Renting out a luxury car showroom is based on how much room is available for branding, signs, and ads. A real estate expert states that a corner showroom space with two-sided visibility will bring in more money for rentals. 

According to a recent Reuters report, Tesla is making right-hand drive vehicles at its Berlin facility with plans to export them to India later this year. The report claims that Tesla executives started actively looking for locations in March. They have already had initial discussions about it with real estate developers.   

According to the statement, the ideal locations will likely be at possible malls and high street locations. Tesla has declared that it wants to begin building as soon as possible, with an opening date of 2024 likely. 

Mumbai-The way micro markets are defining real estate

These smaller-scale micro markets cater to particular demographics and present distinctive prospects. They meet the community’s demands of work, connectivity, and way of life. 

Mumbai: The real estate landscape in Mumbai is changing due to micro markets. Developers are finding smaller, niche markets within the metropolis in this space-constrained city. These smaller-scale micro markets cater to particular demographics and present distinctive prospects. These smaller-scale micro markets offer unique opportunities and target specific demographics. They meet the community’s requirements for work, connectivity, and way of life.  

“In the  Mumbai Metropolitan Region (MMR), neighborhoods like Dombivali, Thane Ghodbunder Road, Goregaon, Kandivali, Mulund, Nahur, Kanjurmarg, Vikhroli, and  Chembur are expanding and developing as micro markets. In these markets, improving connectivity and infrastructure are critical components People who want to investigate the walk-to-work concept are finding a lot of commercial and residential buildings in these areas, according to Dominic Romell, director of Romell Group and president of CREDAI MCHI. 

“As more people have options for commuting to work outside local trains, the growth is also primarily driven by the increasing metro connectivity.” According to Romell, these micro-markets offer 2 BHK apartments with a carpeted area ranging from 600-645 square feet and one parking space. They would rather take a comfortable transit option that drives down and exacerbates the traffic jam.”

These apartments range in price from around Rs 1.75 crore and less, though prices will depend on the location and amenities. In response to the issue of whether we can refer to these as “Affordable dwellings,” Romell said that although the size of these apartments is reasonable, the price is not because it is directly tied to the cost of land that the developer bought. 

CEO of Runwali Bliss, Lucy Roychoudhury, stated that Mumbai’s architecture is changing due to the construction of high rises and skyscrapers in areas that were not as popular ten years ago as they are now for home buyers. “Localities like Kanjurmarg, Vikhroli, Dombivli, and Kandivali amongst others have gained momentum in the past few years and are locations much sought-after by home buyers today,” Roychoudhury said. The luxury of gated  communities with expansive green open spaces, first-rate amenities, and improved connectivity is available at these locations.” 

“The younger generation of homebuyers is looking for larger living spaces without sacrificing access to convenient places for their way of life or employment. Recent data indicates a significant demand for homes for ownership and rental purposes, due to the ease of commuting, the availability of projects, and good social infrastructure. These neighborhoods encourage homebuyers to upgrade their lifestyles because they offer the perfect balance of luxury and convenience” Roychoudhury said.

Micromarkets serve a variety of purposes. Young professionals value vibrant nightlife and cultural scenes, while families value proximity to schools, supermarkets, and hospitals. Mumbai’s real estate market changes as micro markets do. Beyond the usual hotspots, homebuyers scour the city for fresh opportunities. 

MahaRERA instructs L&T to take only 2% when canceling an NRI homebuyer’s reservation

A second criticism leveled at the prospective buyer came from the state real estate regulator for failing to fulfill payment obligations despite numerous reminders.  

While considering a complaint submitted by an Abu Dhabi homebuyer, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has instructed Larsen & Toubro (L&T) to take only  2% of the amount already paid and return the remaining amount.  

This is the regulator’s second decision following a comparable case involving Godrej Properties.  

The conglomerate’s real estate division, L&T Realty, developed a project in Mumbai’s Kurla neighborhood. The non-resident Indian (NRI) paid more than Rs 25 lakh toward the project’s overall cost of Rs 2.29 crore. 

However, because the remaining amount was not paid, L&T eventually canceled the reservation. With a cancellation charge of more than Rs 8 lakh, or roughly 3.49 percent of the total flat price, L&T offered the buyer Rs 17 lakh.

When a booking is terminated, MahaRERA’s order instructs L&T to deduct no more than 2 percent of the total amount paid. 

On April 8, Moneycontrol reported that MahaRERA had ordered Godrej Greenview Housing Private Limited, a division of Godrej Properties, to take out a mere 2 percent, instead of 5 percent, and return the remaining funds to a buyer who had reserved and canceled an apartment worth Rs 92 lakh at the Godrej Emerald development in Thane, close to Mumbai. 

The case 

The buyer, currently in the United Arab Emirates, reserved a unit and got an allotment letter in March 2018 at the Emerald Isle-T10 project in Kurla, Mumbai. 

The buyer paid approximately Rs 25 lakh, which made up 10.50 percent of the total cost.

Due to the bank subvention scheme’s termination, the buyer could not finish the transaction. 

In a subvention scheme, the buyer, developer, and buyer’s lender enter into a three-way agreement whereby the buyer contributes up to 10% of the total cost, with the financial institution bearing the remaining amount. Equivalent monthly installments start once the buyer receives possession of the property.

The developer argued before MahaRERA that the complainant (homebuyer) failed to appear to sign the sale agreement despite its efforts, an assertion that the buyer challenged. 

The developer said at the MahaRERA conciliation forum that he was willing and able to reimburse the buyer for Rs 17 lakh. 

They could not agree on the sum and thus couldn’t sign the consent terms. 

For his inability to travel to India and carry out the sale agreement, he cited  COVID-19. 

Apart from refunding the allegation of sufficient funds, he asserted that he had enough cash on hand and that the sale agreement was unsigned, so he was not required to pay the developer. 

Despite the developer’s request in June 2019, the MahaRERA stated in its order dated March 11 that the buyer had not explained why he had not paid the stamp duty and registration fees required to complete the sale agreement.  

“The MahaRERA order stated that despite the respondent’s repeated correspondences, all of these facts point to the complainant’s flimsy justifications for avoiding timely payment and the execution of the sale justifications for avoiding timely payment and the execution of the sale agreement.”  

Given that the homebuyer had requested to leave the project along with a refund, MahaRERA ordered the developer to return the money paid without interest after deducting 2 percent of the total consideration (value). 

MahaRERA directs Godrej, a real estate developer, to reimburse a portion of the amount that the buyer forfeited.

Experts predict that more real estate developers may encounter situations similar to the one described in the ruling, in which the amounts forfeited due to booking cancellations exceed the legally allowable limit. 

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered Godrej Greenview Housing Private Limited of Godrej Properties to refund the remaining amount to a homebuyer who canceled their booking of an apartment worth Rs 92 lakh at the Godrej Emerald project in Thane, near  Mumbai, and only deduct 2% instead of 5%. 

Ajit Dabhade, the buyer, paid an earnest money of Rs 5 lakh in June 2019 to reserve a flat worth Rs 92.17 lakh. However, Dabhade opted to revoke the reservation because of difficulties getting the promised loan to cover registration and stamp duty. Godrej Properties then lost all of the money that Dabhade had paid. 

MahaRERA ordered the developer to deduct only 2% of the flat’s total consideration value in response to Dabhade’s complaint; this would mean that the homebuyer would receive a refund of the remaining amount. 

Dabhade claimed that his inability to receive the entire loan amount as promised made it difficult for him to move through with the purchase. Dabhade chose to cancel, which led to Godrej Properties’ Forfeiture even though the developer offered an amnesty program in 2021 to lessen the interest that has to be paid. 

In its March 11, 2024 ruling, MahaRERA found the developer’s forfeiture of the entire amount be unlawful, citing provisions under the Real Estate (Regulation and Development) Act, 2016 (RERA).  

Although the booking application form permitted forfeiture of up to 5%, the authority clarified that Godrej Properties’ actions went beyond the bounds of the law. 

Upon canceling the booking, the developer lost all the funds the buyer had paid, which amounted to over 5% of the flat’s total consideration value. According to the terms of the booking application from dated June 22, 2019, the developer has forfeited this amount. But according to the RERA’s provisions, the developer’s forfeiture of this amount– more than 5% of the flat’s total consideration — is not right or appropriate,” the MahaRERA order stated. 

Additionally, MahaRERA upheld its previous August 2022 order, allowing a maximum forfeiture of 2% of homebuyers who decide to cancel. The authority clarified that Godrej Emerald and other registered projects are subjected to its directives retroactively. 

As a result, Godrej Greenview Housing Private Limited has been given 45 days from the order’s receipt to return the money Dabhade paid, less than 2% of the entire flat value. 

Godrej Properties did not respond to an email request for comments. 

Mumbai’s real estate crimes are on the rise

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. 

Mumbai will not be raising its property tax

Mumbai’s property taxpayers can once again celebrate the Maharashtra cabinet’s decision to keep the property tax at the current level. An official statement claims that this decision will relieve residents of Mumbai of an extra Rs 736 crore of burden. Are you a Mumbai property owner as well? Then, read this article to learn more about the latest changes to Mumbai’s property tax.  

The forthcoming increase in Mumbai’s property tax has also been put on hold by the Brihanmumbai Municipal Corporation (BMC) for the current fiscal year. By 2020, there will likely have changed since the last one in 2015. The business has held back the hike for two years to give the proprietors a break during the pandemic. It is fascinating that the Maharashtra cabinet decided to keep Mumbai’s property tax laws unchanged this year. The ruling relieved Mumbai property owners by allowing them to postpone paying property taxes for an extra year. Let’s take a look at this recent update in detail. 

Why does Mumbai have a deferred property tax? 

Several MLAs asked Chief Minister Eknath Shinde to postpone the hike for an additional year, citing the burdensome additional 16-20% property tax that would fall on homeowners. Ahead of the municipal election, the choice has been dubbed a scam. 

When would BMC give up on it? 

Refusing to raise the property tax in Mumbai for the current year is expected to cost BMC Rs 1,080 crore in revenue. According to officials, the pandemic has affected property tax revenue over the last two years. 

Because those who live in homes under 500 square feet are exempt from paying property taxes, the BMC is also giving up Rs 462 crore. This concession took effect on January 1, 2022. Owners of residential flats totaling about 16.14 lakh have benefited from it. 

Which other decisions concern property taxes? 

Until September 2022, the Panvel Municipal Corporation (PMC) will reimburse 50%of unpaid property taxes. Helping those who were unable to benefit from the prior 75% rebate is the aim of this decision. 

In the final week of July, approximately Rs 10 crore in property tax was collected, according to senior civic officials. In the current fiscal year, the collection total is Rs 62 crore. 

Mumbai property taxes: current information (February 2024)

The Maharashtra Cabinet decided not to raise the Mumbai property tax during its most recent meeting on February 5, 2024. According to the proposal of the Urban Development Department, the cabinet presided over by Chief Minister Eknath Shinde decided to maintain the current property tax system. Refusing to raise property taxes in Mumbai would spare the city’s citizens an extra Rs 736 crore in debt. 

In 2015, the Brihamantri Municipal Corporation (BMC) kept the property taxes at the same level. Mumbai’s Brihanmumbai Municipal Corporation (BMC) kept the property taxes at the same level. Mumbai’s Brihanmumbai Municipal Corporation reviews property tax increases every five years. In anticipation of civic polls in 2022, the cabinet earlier decided not to hike property taxes because of the COVID outbreak. 

In Mumbai, BMC collected property taxes totaling Rs 5,792 crore in the fiscal year 2022-2023. By choosing not to raise property taxes, the government has been demonstrating to owners of real estate inside the city limits how hard it works for them. These choices will lessen the financial load on property owners and encourage improved money management. Furthermore, Mumbai’s overall property value will continue to be appealing and will eventually rise with stable property taxes.                 

In the Asia Pacific region’s annual housing price growth index, Bengaluru comes in at number eight and Mumbai at number nine.

According to Knight Frank’s Asia-Pacific Residential Review Index for H2 2023, Singapore is the best-performing Asia-Pacific market, with a YoY growth of 13.7%. 

Regarding annual price growth in H2 2023, Bengaluru, Mumbai, and the National Capital Region have secured a position among the top 10 Asia-Pacific residential markets performing well. Bengaluru ranked eighth on the Asia-Pacific Residential Review, with a YoY growth of 7.1%, while Mumbai ranked ninth, with a YoY growth of 7%.  

Another significant residential market, NCR, came in at number eleven with a 6% YoY price rise during that time. Knight Frank’s Asia-Pacific Residential Review Index for H2 2023 states that Bengaluru, Mumbai, and the National Capital Region (NCR) will account for 60% of all sales volume in Indian markets in 2023. 

Non-city-centric developers are showing interest in Bengaluru, leading to a 24% increase in the number of launches in the city during H2 2023. In the second half of 2023, the town sold 27,799 dwellings. The city’s average price is Rs 5,900 per square foot or Rs 63,508 per square meter. 

The heightened demand during festive periods such as Navratri, Dussehra, and Diali is primarily to blame for Mumbai’s notable improvement in sales in 3Q 2023. The city sold 46,073 residences in the second half of 2023. The average price in the town is Rs 84,849 per square meter or Rs 7,883 per square foot. 

Overall, 29,888 units were sold in the NCR in H2 2023, with an average price of Rs 4,579 per square foot (Rs 51,226 per square meter). 

21 out of 25 Asia-Pacific (APAC) cities have positive annual price growth, according to the Asia-Pacific Residential Review Index for H2 2023. Singapore is the best-performing Asia-Pacific market, with 13.7% year-over-year (YoY) growth. 

Asia-Pacific Residential Review, which focuses on investors, offers a comprehensive analysis of the performance of the Region’s mainstream residential markets. 

“In 2023, residential property demand in India’s major cities has surged to its highest level in a decade, despite the increase in mortgage rates and property prices,” stated Shishir Baijal, Chairman and Managing Director of Knight Frank India. In 2024, residential demand will still maintain momentum due to notable tailwinds like the anticipated decline in interest rates and comparatively robust economic growth.” 

With a large inventory of completed new apartments that are unsold and high-interest rates, the Hong Kong residential market is the last in the world according to the index. Rising mortgage rates make it more difficult for buyers to afford homes, so they are more cautious. 

“The residential market experienced a surge in the past six months, following the FED’s decision to pause rate hikes, which encouraged potential buyers who had been waiting to make purchasing decisions,” stated Kevin Coppel, managing director at Knight Frank Asia-Pacific. Due to persistent supply-side issues like labor shortages, rising input costs, and construction delays, prices have benefited in many cities throughout the Asia-Pacific area”. 

According to him, cities like Bengaluru, Singapore, Sydney, Brisbane, Perth, Manila, Delhi, and Brisbane have all prospered from the wealth effect, supply outpacing demand, and promising economic growth prospects. 

Forbes Global Properties enters the Indian real estate market with plans to build in Goa, Delhi, and Mumbai.

In Navi Mumbai, Forbes Global Properties intends to construct a 100-acre project. It is negotiating for a housing project in Goa and a commercial project in Delhi. 

On January 24, US-based Forbes Global Properties revealed its entry into the Indian real estate market by providing brokerage services for upscale residences. In collaboration with landowners, it also intends to build two projects totaling 10 million square feet in Delhi and Mumbai. It also investigates the possibility of building a 10-lakh-square-foot residential project in Goa.

The amount of money the company planned to invest in India was kept a secret. 

Forbes Global Properties, a company founded in December 2020, not long after COVID-19, entered the Indian market using a membership network model. It is already present in 26 countries, where 17,000 agents serve clients with real estate needs.  

The international company will receive a membership fee from the Indian venture “Indian Forbes Global Properties.” The Indian venture’s chairman will be A.K Sharma. According to Sharma, the business would use a development management model to carry out projects. “Brokerage is our primary business,” Sharma stated. “India Forbes Global Properties will offer brokerage services for the luxury residential market and is considering purchasing equity stakes in at least two of these consulting firms.” 

India has a sizable market and economy. To better assist our clients looking to purchase and sell luxury properties, we have expanded into India. Forbes Global Properties CEO Michael W. Jalbert will reporters in this location. 

India Forbes Global Properties will first develop a 100-acre mixed-use project in Navi Mumbai in partnership with Orange Smart City, building a 1,200-acre integrated township. Infrastructure construction is the responsibility of the Mumbai Metropolitan Region Development Authority (MMRDA). 

PropEquity Analytics and India Forbes Global Properties FGP have partnered as well. 

“In 2019, there were about 5235 units in India’s luxury real estate market (above $1 million), with a total value of $5 billion. It is now a more than 100% increase in that number.  Approximately 13,600 units are worth $12 billion today. The demand from the NRI segment and the general expansion of the Indian economy are the main reasons for this number’s growth, according to PropEquity’s founder and CEO, Samir Jasuja. PropEquity is a cutting-edge online search platform for real-time data, intelligence, and analytics. 

The network of invitation-only Forbes Global Properties members represents many of the best properties available worldwide for purchase and is exclusive to the most illustrious brokerages in particular cities and second-home destinations. High net-worth individuals, inventors, and real estate investors will have access to some of the most sought-after and unique properties through Indian ventures.  

Positive effect: What Budget 2012 means for Mumbai’s Real Estate.

Allowing external commercial borrowings (ECBs) in the low-cost housing segment, the supply of affordable housing projects will increase in the outskirts of Mumbai in areas such as Karjat, Boisar, Nalasopara, Virar, Dombivili etc. on the heels of increased liquidity for budget home projects.

The extension of 1% interest subvention scheme on housing loans up to Rs 15 lakh wherein the cost of the house does not exceed Rs 25 lakh, for another year will also help sustain demand for affordable housing in Mumbai.

The increased allocation for highways and other infrastructure projects will help boost development of Mumbai’s outskirts and increase the supply of housing units there. This will result in price stability and affordability over the long term. The investment-linked deduction of capital expenditure in affordable housing, proposed to be raised to 150% from 100%, will also encourage more supply of low-cost housing in the city.

The reduction of the withholding tax on ECB interest from 20% to 5% will help Mumbai’s affordable housing segment by creating much-needed liquidity for budget home developers. End users will have more money available for home loans with the setting up of a credit guarantee trust fund to ensure better flow of institutional credit for housing loans.

The announcement of central assistance and Japanese participation in the Delhi-Mumbai Industrial Corridor project is a big plus. Areas on Mumbai’s outskirts that lie along the corridor will see increased land values.

By reinforcing the tax pass-through status for all types of Venture Capital Fund (VCFs), there will be renewed confidence levels of real estate private equity investors to invest in cities such as Mumbai (which has seen most of the PE investments post the Global Financial crisis.)