South-Central Mumbai luxury home sales records sharp pick up in October – ET RealEstate

MUMBAI: Luxury apartments in south-central Mumbai, an area that was saddled with supply, saw a sharp pickup in sales in October, providing relief to the developers who were struggling to offload inventory after Covid-19 pandemic disrupted the real estate market.

A reduction in stamp duty, festive offers, ready stock and minimal impact of Covid-19 on its target buyers helped boost sales in this upscale area .

South-central Mumbai localities – including Tardeo, Mahalaxmi, Worli, Prabhadevi, Byculla and Lower Parel – have witnessed a jump of more than 230% year-on-year in monthly sales to Rs 500 crore, showed data from Anarock Property Consultants.

In October last year, these localities had recorded sales of Rs 150 crore for apartments priced above Rs 5 crore.

“The limited-period reduction in stamp duty cut has had an impact across segments including even Mumbai’s hyper-expensive luxury locales,” said Anuj Puri, chairman, Anarock Property Consultants. “At such steep ticket prices, even HNIs (high net worth individuals) are not impervious to potential savings. The offers currently rolled out by developers are also pushing sales in these markets. The stamp duty cut alone helps buyers save at least Rs 12 lakh on a property worth Rs 4 crore, and the saving goes up as the average property cost increases.”

The Maharashtra government had reduced stamp duty to 2% from 5% till December-end and 3% between January and March 2021 in a bid to encourage home sales.

According to property brokers, the pandemic’s impact on clientele for such properties has been limited and these prospective buyers are largely scouting for ready homes or those nearing completion.

Developers expect the trend to continue during the festive season.

“October was the best-ever month for sales in the luxury and premium segment, with over Rs 400 crores of sales in just one month. This builds on the continued momentum since July,” said Abhishek Lodha, managing director, Lodha Group. “Consumers have a clear preference for ready homes and with limited ready supply, stamp duty cut, low interest rates and increased preference for home buying, we expect the sales in premium and luxury to continue to be strong.”

The stamp duty reduction not only helped convert pent-up demand in the mid-income and affordable segments but also prompted the conclusion of several large-ticket transactions in the city, and the trend is seen picking up further during the ongoing festive season. Several large transactions are getting concluded in Mumbai, the country’s most expensive property market, in the backdrop of reduced stamp duty charges and various offers.

South-central Mumbai is also witnessing this uptrend in sales.

These micro markets are known for their proximity to business hubs and traditional luxury pin codes of south Mumbai. These also house many high-profile names including industrialists, sports people, start-up founders and C-Suite professionals, and therefore the preference of this buyer segment continues to be in favour of the micro market.

Given the pickup in sales, the unsold stock in south-central Mumbai localities reduced by more than 5% in a year to 11,300 units at the end of September, showed the data. In 2019, unsold stock in these premium localities had risen 8% from a year ago. Therefore, with dipping inventory levels, luxury housing developers, who are active in these micro markets, are breathing easier now.

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BMC resumes demolition of dangerous buildings in Mumbai – ET RealEstate

MUMBAI: After several cases of building collapses this monsoon, the BMC has resumed its drive to vacate and demolish dilapidated buildings. The civic body had halted its crackdown on such buildings in April owing to the pandemic and lockdown.

Civic officials said 443 buildings listed as dilapidated have been marked for demolition by the end of the year. The BMC classifies these as C1 category buildings, meaning they are beyond repair and need to be demolished urgently. Of the 433, 52 are BMC-owned, 27 belong to the state government and 364 are privately owned.

Zone 3, which includes Bandra and Andheri, accounts for 109 of these buildings. Zone 6, which covers Mulund, Ghatkopar and Bhandup, has 105.

In Zone 7, which includes areas such as Borivali, Kandivali and Dahisar, the BMC has already demolished eight of 53 dangerous buildings and evacuated another 14. Officials said the BMC has cut electric and water supply to another 16 buildings in these areas as residents are refusing to vacate them.

L ward has 23 dilapidated buildings, of which seven have been demolished, said Manish Walunj, assistant municipal commissioner of the ward. One of the seven, a ground-plus-twostorey building, was razed on Thursday.

“There was a dispute between the tenants and the landlord and a stay order on the [demolition of] Chakkiwala building on Pipe Road,” said Manish Walunj, assistant municipal commissioner, L ward. “We got the stay vacated and ensured that all residents moved out. Once the stay was vacated, we demolished the building. We are taking action after following due process.”

BMC resumes demolition of dangerous buildings in Mumbai
K-West ward has 46 dilapidated buildings. Of these, 13 have been vacated and the BMC has cut water and electricity supply to 15. “On Thursday we demolished the ground-plus-threestorey Deepavali building,” said Vishwas Mote, assistant municipal commissioner, K-West ward.

“There was a stay on the building’s demolition but we moved the high court and got the stay vacated. Since the building was adjacent to the main road, it was necessary to get it demolished. It was in a terrible condition. The residents had vacated it but the owners of some shops on the ground floor had refused to move out.”

In July, nearly one-third the sixstorey cessed Bhanushali building near Lucky House in Fort collapsed, killing 10 people. On August 27, a 12-year-old girl and a 70-year-old woman succumbed to their injuries at JJ hospital after part of a toilet collapsed in Mishra Building at Shuklaji Street, Byculla.

The same day, a woman sustained serious injuries when part of a building collapsed in Chembur. Also on the same day, a portion of a two-storey house at Gautam Nagar in Deonar caved in. One woman sustained injuries and was admitted to Shatabdi Hospital.

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