What's Next for Mumbai's Real Estate Sector After BJP's Maharashtra Win?

Experts suggest focusing on commercial real estate in Mumbai and Pune, which offer robust opportunities for investors. Affordable housing and infrastructure challenges remain key areas for the new government to address.

Real EstateMumbaiBjpAffordable HousingCommercial Real EstateReal Estate PuneNov 25, 2024

What's Next for Mumbai's Real Estate Sector After BJP's Maharashtra Win?
Real Estate Pune:The BJP-led Mahayuti alliance's landslide victory in Maharashtra has raised expectations for significant policy reforms in the real estate sector, particularly in Mumbai. In a recent discussion with CNBC-TV18, experts outlined key areas where the new government could make a tangible impact, focusing on affordable housing, infrastructure, and commercial real estate opportunities.

Boman Rustom Irani, Chairman and Managing Director at Keystone Realtors, emphasized that Mumbai faces significant challenges, particularly with its slum areas. He highlighted the BJP's commitment to creating a slum-free city as a key focus for the new administration.

Affordable Housing Solutions

Irani outlined three ways the government could support affordable housing in Mumbai

1. Reviving Rental Housing Schemes Irani suggested reviving rental housing schemes where the government builds the housing and private enterprises manage and operate them. “Around the world, you see cities developing on the back of good housing created by the government and then run by private enterprise on a rental housing model. That is very possible for the city of Mumbai,” he said.

2. Incentivizing Development in Peripheral Areas He emphasized the importance of incentivizing development in peripheral areas like Navi Mumbai, Vasai, and Dombivli, which are becoming more accessible due to improved infrastructure. Measures such as reduced stamp duties or tax benefits could encourage affordable housing projects in these areas.

3. Rationalizing Taxes Irani pointed out that taxes currently account for up to 32% of a home’s value in Mumbai, significantly inflating costs for buyers. Rationalizing these taxes could make housing more affordable.

Industrial Focus and Commercial Real Estate

Gulam Zia, Senior Executive Director at Knight Frank India, believes that Maharashtra is poised to regain its industrial focus, which had been lacking in recent years. From an investor's perspective, Zia advises against residential real estate, citing high prices in the mid-to-upper housing segments.

“Prices have already risen up, especially in the mid to upper end, beyond any reasonability. Hence, any investment perspective for residential real estate is definitely out of question,” he noted.

Instead, Zia recommended focusing on commercial real estate in Mumbai and Pune, which continue to offer robust opportunities for investors. The improved infrastructure and growing demand for office spaces in these cities make them attractive investment options.

Looking Ahead

The new government's focus on policy reforms and infrastructure development could significantly impact Mumbai's real estate sector. Addressing the challenges of affordable housing and slum areas, while leveraging the potential of commercial real estate, could pave the way for a more balanced and sustainable real estate market in the region.

Keystone Realtors is a leading real estate development company in Mumbai, known for its innovative housing solutions and commitment to urban development. Knight Frank India is a prominent real estate consultancy firm, providing comprehensive services in the commercial and residential real estate sectors.

Frequently Asked Questions

What are the key challenges faced by Mumbai's real estate sector?

Mumbai's real estate sector faces significant challenges such as high property prices, especially in the mid-to-upper segments, lack of affordable housing, and the presence of slum areas.

What are the three ways the government can support affordable housing in Mumbai?

The government can support affordable housing by reviving rental housing schemes, incentivizing development in peripheral areas, and rationalizing taxes to make housing more affordable.

Why is the focus on commercial real estate recommended by experts?

Experts recommend focusing on commercial real estate in Mumbai and Pune due to the high prices in residential segments and the robust opportunities offered by these cities in terms of office spaces and improved infrastructure.

What is the BJP's commitment to Mumbai's real estate sector?

The BJP's commitment to Mumbai's real estate sector includes a focus on creating a slum-free city and implementing policy reforms to address affordable housing and infrastructure challenges.

What are the expected policy changes in the real estate sector post the BJP's win in Maharashtra?

Post the BJP's win in Maharashtra, the expected policy changes include initiatives to support affordable housing, rationalize taxes, and incentivize development in peripheral areas to improve the overall real estate market.

Related News Articles

India's Economy on Growth Trajectory: RBI Projects 7% GDP Growth for FY25
real estate news

India's Economy on Growth Trajectory: RBI Projects 7% GDP Growth for FY25

The Reserve Bank of India (RBI) has set India's real GDP growth at 7% for FY25

May 30, 2024
Read Article
Pune Weather Forecast: Get Ready for Light Rain and Cloudy Skies from October 1 to 6
Real Estate Pune

Pune Weather Forecast: Get Ready for Light Rain and Cloudy Skies from October 1 to 6

Pune weather alert: IMD predicts light rain and cloudy skies from October 1 to 6. Check out the latest weather forecast for Pune and plan your week ahead.

October 1, 2024
Read Article
NAREDCO and FSAI Sign Memorandum of Understanding to Boost Real Estate Sector
Real Estate Maharashtra

NAREDCO and FSAI Sign Memorandum of Understanding to Boost Real Estate Sector

NAREDCO and FSAI have signed a Memorandum of Understanding (MoU) to collaborate on various initiatives aimed at enhancing the real estate sector in India. This strategic partnership is set to bring about significant improvements in housing and infrastruct

October 9, 2024
Read Article
Suraj Estate Developers Witnesses 26% YoY Growth in Pre-Sales for Q2FY25
Real Estate Mumbai

Suraj Estate Developers Witnesses 26% YoY Growth in Pre-Sales for Q2FY25

Suraj Estate Developers Limited, a prominent real estate player in the South-Central Mumbai (SCM) market, has reported a significant 26% year-over-year (YoY) growth in pre-sales for the second quarter of fiscal year 2024-25 (Q2FY25). This growth underscor

November 15, 2024
Read Article
Rental Housing Demand Surges to New Heights in Denmark
real estate news

Rental Housing Demand Surges to New Heights in Denmark

The demand for rental housing in Denmark has reached an all-time high, according to the latest report from EjendomDanmark, the leading association of property owners and administrators. This surge in demand is driven by a combination of factors, including

November 29, 2024
Read Article
SRG Housing Finance Reports 7.89% Net Profit Growth in Q3 FY25
real estate news

SRG Housing Finance Reports 7.89% Net Profit Growth in Q3 FY25

SRG Housing Finance reported a 7.89% increase in net profit for the third quarter of FY25, with a total income of Rs 40.25 crore, marking a 24.96% growth from Rs 32.21 crore in the corresponding period last year.

January 31, 2025
Read Article