Weakening property demands in Mumbai
Weakening property demands have resulted in Mumbai real estate builders being weighed down with large stocks. But the developers are using their creative skills to sustain themselves in the business. They are coming up with innovative ideas to not let the Mumbai property market scrub down.
While green buildings have already marked their entry in the Mumbai real estate market, the concept of green cover is burgeoning as well. A cover of flora is provided to the client on long terraces and podiums. Depending on the project size the cover spans up to 2.5 acres, research reports. It is provided on terraces, over huge multi-level car parks and ‘relief’ on the middle floors of high-rise complexes.
Talking about the advantages, for the buyer, who is getting more environment conscious day-by-day the benefits are apparent. Besides being healthy the green canopy is also a way to reminiscence the good old way of living in the nature’s lap, feels Mr S Kapoor, Mumbai real estate agent. For the builders, the value the green canvas provides is enormous.
One of the largest such elevated gardens is being developed by Marathon Group. It is a mixed use residential-cum-commercial complex having a built-up area of about 7 lakh sq ft. The elevated garden project is 1.20 lakh sq ft in area. Also, Orbit Corporation has designed a garden and club house on the eighth floor of one of its projects, in addition to roof parks on every fifth floor of another.
According to Mumbai real estate builders, generally, the additional cost of Rs 250 to Rs 300 a sq ft for setting up the green cover has no influence on Mumbai property prices per se, that are in any case ascending Rs 10,000 per sq ft.
Monday, July 21, 2008
Mumbai Properties – finding home is difficult
Mumbai Properties – finding home is difficult
Mumbai real estate is witnessing yet another tumultuous phase. The rising rental values for commercial property are leaving property seekers in confusion. Property analysts say that this unprecedented hike in commercial rental values will force many companies to exit Central Business Districts (CBDs) in search of affordable office space. Mumbai is one of the top ten most expensive cities to rent, lease or buy property. Business firms, who want to have a presence in Mumbai because of its strategic location, are finding it difficult to even rent a property there. Mumbai real estate brokers say that property developers ask for sky-high just as one tenancy ends and other begins. High rentals for residential property are turning out to be a nuisance for corporates. Most companies give their employees the facility of Housing Rent Allowance (HRA). This allowance is reworked annually to suit the market condition, which normally is not more than 5 – 10%of an employee’s salary. But present market conditions have forced many foreign companies and multinational banks to reconsider leasing property for employees. Now, companies are advising employees to fond accommodation on their own and the company pays a part of this rent.Property brokers in Mumbai explain this trend further. They say, “property owners are demanding such high rentals that a common man is hesitant to even inquire abut it. It is more feasible to buy an apartment in Mumbai than have it on lease.”While the secured leasing laws are making it easier to get an apartments on lease in Mumbai, but the sky-rocketing rentals are making firms think twice before leasing apartments.Even though redevelopment has started in many parts of city and property prices are expected to come down, nothing major has happened yet. Many of the property projects are lying vacant in many areas of the city. Investors have been holding on to these flats for the past 5 to 10 months anticipating that the demand will emerge. But in spite of a slow down in the demand side the property rates aren’t dropping. It seems that buying a house in Mumbai is a distant dream for many.
Mumbai real estate is witnessing yet another tumultuous phase. The rising rental values for commercial property are leaving property seekers in confusion. Property analysts say that this unprecedented hike in commercial rental values will force many companies to exit Central Business Districts (CBDs) in search of affordable office space. Mumbai is one of the top ten most expensive cities to rent, lease or buy property. Business firms, who want to have a presence in Mumbai because of its strategic location, are finding it difficult to even rent a property there. Mumbai real estate brokers say that property developers ask for sky-high just as one tenancy ends and other begins. High rentals for residential property are turning out to be a nuisance for corporates. Most companies give their employees the facility of Housing Rent Allowance (HRA). This allowance is reworked annually to suit the market condition, which normally is not more than 5 – 10%of an employee’s salary. But present market conditions have forced many foreign companies and multinational banks to reconsider leasing property for employees. Now, companies are advising employees to fond accommodation on their own and the company pays a part of this rent.Property brokers in Mumbai explain this trend further. They say, “property owners are demanding such high rentals that a common man is hesitant to even inquire abut it. It is more feasible to buy an apartment in Mumbai than have it on lease.”While the secured leasing laws are making it easier to get an apartments on lease in Mumbai, but the sky-rocketing rentals are making firms think twice before leasing apartments.Even though redevelopment has started in many parts of city and property prices are expected to come down, nothing major has happened yet. Many of the property projects are lying vacant in many areas of the city. Investors have been holding on to these flats for the past 5 to 10 months anticipating that the demand will emerge. But in spite of a slow down in the demand side the property rates aren’t dropping. It seems that buying a house in Mumbai is a distant dream for many.
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