Coastal Road – A New Challenge or a Dream

As they say, ” There is light at the end of the Tunnel”, same is the case of Mumbai’s infrastructure story. Although a lot has been done over the past few years, but some thing or the other misses at the tail be it final touches, finishing or jam at the end of the new flyover.

The Maharashtra Government has received an inprinciple approval for the Coastal Road which will connect Suburbs (Locations like Kandivili) to South Mumbai may be till chowpatty or some where around Worli we do not know as yet, keeping in mind, we have the Bandra – Worli Sea Link, it be interesting to see the plans which may come up in some time.

The Western Suburbs of Mumbai are choked and jammed due to poor planning, lots of slums and encroachments on the main S V Road etc. East West connectivity is the poorest between Andheri and Borivali with just around 4 flyovers at present servicing the east west connectivity.

A coastal road which will perhaps be along the coast will boost the connectivity to the throbbing suburbs and hopefully with better connectivity, they will be able to decongest the suburbs to an extent. The  need of the hour is to open up the coast with Boats, Catamarans, Ferries which perhaps may be a much cheaper to do, but the State Government wants to get into the way of a lot of Environment Challenges, the stretch of Entire Juhu Beach, the Bandstand and the Carter Road.

Let us see what the state has plans.

Please review the following : http://indianexpress.com/article/cities/mumbai/roads-traffic-bridges-get-the-lions-share-in-bmc-budget/

Click here for the BMC Report – http://www.mcgm.gov.in/irj/portalapps/com.mcgm.RTI_GMDA/docs/Costal%20road.pdf

Author – Sandeep Sadh – CEO – Mumbai Property Exchange

The Views and comments are personal of the Author.

 

 

 

 

 

 

 

 

 

Financial Planning in Real Estate

Money makes money grow…is a well known saying.

Financial Liquidity to any individual brings in a sense of Security, Confidence and it opens up a box of opportunities. We have all been there and done that as to what can we do with Money in the Bank. Hence, a smart financial planning in real estate is essential.

Mumbai Property Market has always been under some stress or the other either be it Government Permissions, Rules Changing, Rules Flaunting or just an over commitment by the developer.

The issue here is that, whatever the problem may be, or who ever the source, only you have to suffer end of the day after paying the down payment and then endlessly waiting in despair without any clarity, transparency or a future course of your construction of your property. The costs today to buy a property today are exorbitant and hence even a small 1 BHK in Borivali is costing your around 80 Lacs. Imagine getting stuck with that kind of money and not having possession and if you have taken a loan or used a bank to pay the interest or the Emi then in any delay in construction boils down on your head.

As Equity markets and Economy grow, the tilt of the Investor remains towards easy and quick returns, where ever he can make easy money. But with shaking sensex the returns are skewed and unpredictable.

Real Estate on the other hand with Structured Schemes gives you Multiple Benefits.

1. A tangible asset where you can live and secures your family future.

2. What ever we may say about equity and investment once you are in your bedroom or living room or the balcony, it gives you a sense of pride and confidence when you are in your own home.

3. Gives you perennial tax benefits not just the year you buy the property but continuously for 15 to 25 years.

4. If you have taken a Bank Loan for your investment and you have rented your property then your entire rent can be set off against the EMI paid, thus giving you substantial tax savings.

5. Structured Schemes like 20;80 kinds give you the liquidity to use your personal equity efficiently.

For more details and Financial planning please feel free to call us on 9820030685.

Sandeep Sadh

 

 

 

Benefit from the New Launches

A few years back there were limited launches owing to the DCR rules and subsequently in 2014 we have seen a lot of new launches.

The new launches not only give a home buyer an opportunity to get into the project at a nascent stage but also enable to create an asset or build a home with a good 3 to 4 year payment plan.

A few tips to get into the right project;

Ensure that you are dealing with a good brand in the market with proven track record. No point investing in a cheaper non branded property if you don’t get delivery on time or even get it.

Going forward the market is going to be brand conscious.

Get into it on day one and understand what are the options coming up. You can know about new launches by subscribing and registering on our website.

Find out a total cost sheet and understand if there are any hidden costs.

For more information on new launches and a personal discussion on your investments please feel free to call us on 9820030685.

 

Hope of Deliverance – Realty Sector

The Indian Property market needs a shot in the arm in a lot of respects and the first one has just come as a “Hope”, that Mr.Narendra Modi the most favorite Indian Citizen Today in the world is going to become the Prime Minister of India.

On a micro level in the country, what is it in for a Home Buyer going forward. A few of the agendas, which will carve the road ahead in realty sector are as follows:

1. Central Government Pro Housing Policies and Taxation

2. Banking Reforms providing lower interest rate for Housing Sector

3. Grass Root Level Micro Reforms, which will cut through the Red Tape for construction industry

4. Infrastructure Development with impetus on Stronger Roads, better connectivity with Metros and other infrastructure speedways projects

5. Strengthening Governance and Creating an Environment for better Economic Development

These are typical wish lists from any Government and perhaps the faith this time around is far greater with Mr.Modi being the PM for fulfilling the desires of an Indian.

As far as the Real Estate Sector goes, the Mumbai Property Market is likely to go through a sea of change and hopefully for good. The average homebuyer needs security for his money and delivery of the promised home and that is the essence of his story.

The time has come for the Indian Real Estate Sector to go through radical changes, which may need a total transfusion, overhaul and simplification of Housing Policies and Construction Laws. Once the policies are simplified and consumer confidence gets back, then there is no stopping for the real estate sector. But for this, one needs a clear vision and clear-cut policies to induce growth.

Real Estate is a Mother of all Industries and at this stage to say anything about price corrections or appreciation will be purely speculative.

The Current situation in Mumbai Metropolitan Region seems to be positive on the wake of the election results, but Mumbai’s diversified population and its absolutely imbalanced infrastructure surely needs a lot of doing and the New Government must take radical steps to ease the pains of home buyers.

Mumbai Residential Market Analysis and Predictions: 2014 and 2015

Mumbai Residential Market Analysis and Predictions: 2014 and 2015

It is absolutely impossible to predict what is in store for the Real Estate Market in the Year 2014 – 2015.

The market largely will depend on the following key factors:
1. Political Results of the General Election in 2014.
2.Government Policies to boost the ailing Real Estate Sector
3.State Government Policies on New DCR, Redevelopment, SRA and FSI
4.Infrastructure Impact across Mumbai Metropolitan Region
5.Dollar vs Rupee Valuation
6.REIT
7.Role of MMRDA and MHADA in the Real Estate Housing Sector
8.Affordable Housing Policy of the Government
9.Stock Market Performance – Both Bull and Bear phases.

Apart from the above, one has to keep a watchful eye on the Demand and Supply in the Micro Markets across Mumbai Metropolitan Region.

In the past 2 years, there have been a lot of New Launches of Real Estate Large Projects by various Top and Middle Range Developers in South Mumbai – Central Mumbai – Western Mumbai – Western Suburbs Extended.

It has been largely seen that there is a parity of Construction Quality, Project Amenities and Configurations. Even then, the prices are different in various developments primarily due to the sales strategies of the Developers based on land holding.

For Example : Lodha – The Park was launched at very competitive price in Worli and the Developer wanted to sell maximum units in the Launch Phase.

The holding capacity of the Developer and his sales strategy, acquisition costs, competition pressure, Premium on a Brand, Amenities in the project, FSI Calculations play a very important role in market dynamics.

If the Political unrest prevails, then we will see a subdued market till the sentiments increase.

If a firm Government comes with pleasing policies then the markets will remain strong. Strong really does not mean here, that the Prices will go up very high, but yes, the fence sitters and investors will surely come back in anticipation of higher returns on the back of a stable economy with better governance.

There are at least 200 Project launches expected in the entire MMR region in the year 2014 of Top Developers.

Year 2014 will be the year when one will see a lot of Mergers and Acquisitions and Joint Ventures between Developers Rich in Land Banks and Developers with efficient and new age marketing strategies and a strong goodwill/brand.

The First Home buyers/Investors are not confident of timely delivery of New Projects and going forward Construction Linked Payment Plans, funded with Banks and Structured deals would play a bigger role in Sales, than the conventional sales ideas.

Innovation, Strategic Planning with keeping consumer interest in all respects will be the key drivers for generating better sales.

It would be advisable for Developers to launch the Project with full IOD, CC and other relevant permissions and Bank Loans than on Soft Launches without.

The Year on Year returns are expected to be in the range of 8 to 12%. A lot of this will vary based on infrastructure impact on Locations.

Mumbai by the (First Quarter – Second Quarter) may see the following infrastructure projects getting ready which will surely play a role in Micro Markets like Andheri East, Ghatkopar, Chembur, Lower Parel, Wadala and Thane.

1. Mumbai Metro – Ghatkopar to Versova.
2. Santacruz – Chembur Link Road
3. Dual Carriage way at Thane to Balkum
4. Free way extension to Ghatkopar
5. Bridge over Western Express Highway at Kala Nagar
6. Sion – Panvel highway connecting to Express Highway to Pune.
7. Airport Road to Western Express highwayMumbai Views

All these aspects will play a huge role in Capital Appreciation, Commercial office spaces, New launches going through 2015.

A few projects which are recently announced and in the pipe line are:

1. Ghatkopar – Koparkhairane – Sea Link – which will boost Dombivali-Kalyan connectivity from Eastern Express Highway.
2. Navi Mumbai Airport Development and the connectivity thereof in Navi Mumbai.

Any large infrastructure plan for the city of Mumbai to ease traffic and build connectivity will directly result in price appreciation in real estate.

Article – Written By Sandeep Sadh.